Business
Chip relief: China allows exports of Nexperia chips for civilian use; move to ease global auto supply strain – The Times of India
China has granted exemptions to export controls on Nexperia chips for civilian applications, its commerce ministry said on Sunday, signalling a potential easing of pressure on the global auto industry hit by supply shortages following earlier curbs, Reuters reported.The announcement marks Beijing’s strongest indication yet that it will relax restrictions imposed after the Dutch government took control of Nexperia, a key supplier of basic chips used in automotive electrical systems.Nexperia, based in the Netherlands but owned by China’s Wingtech Technology, had been at the centre of a trade standoff that disrupted global chip supplies. The Chinese ministry did not define what constitutes “civilian use,” but the move comes after German and Japanese companies said deliveries of Nexperia’s China-made chips had resumed.Despite the exemptions, China–Netherlands relations, and by extension ties with the European Union, are expected to remain strained until the dispute over Nexperia’s ownership and operations is resolved.The Dutch government seized control of the company on September 30, citing concerns that Wingtech’s plans to shift production to China posed a threat to European economic security.In response, China halted exports of Nexperia’s finished chips, which are primarily packaged in China, but last week said it would start accepting applications for export exemptions following a meeting between US President Donald Trump and Chinese President Xi Jinping on October 30.China’s commerce ministry reiterated that it aims to protect global chip supply chains, while accusing the Netherlands of failing to act to resolve the standoff.In its statement Sunday, the ministry urged the European Union to “intensify efforts” to persuade the Netherlands to reverse its decision.“China welcomes the EU to continue leveraging its influence to urge the Netherlands to promptly rectify its erroneous actions,” the ministry said.
Business
US supply chain strain: FAA flight cuts, cargo jet grounding hit US logistics; FedEx and UPS brace for holiday rush – The Times of India
The US air cargo industry is bracing for fresh turbulence as the Federal Aviation Administration’s (FAA) 10% reduction in flight capacity across 40 major airports collides with the grounding of UPS and FedEx’s McDonnell Douglas MD-11 fleets, deepening pressure on supply chains ahead of the crucial Thanksgiving and holiday shipping season.The FAA ordered airlines to cut domestic flight operations by 10% between 6 a.m. and 10 p.m. local time, citing air traffic controller shortages caused by the prolonged government shutdown, AP reported. The decision affects key hubs with major parcel distribution centres — including FedEx’s Memphis and Indianapolis bases and UPS’ Worldport hub in Louisville, Kentucky, where a deadly cargo plane crash this week killed 14 people, including three crew members.Both companies announced they were grounding their MD-11 aircraft “out of an abundance of caution”, removing a significant chunk of capacity — roughly 9% of UPS’ fleet and 4% of FedEx’s. The double blow has prompted concerns about rising strain on logistics networks just weeks before the peak shopping period.“This is such a stressful time for both companies,” said Patrick Penfield, supply-chain management professor at Syracuse University, quoted AP. “You’ve got a surge in demand, and then you just lost some of your capacity. They’re already scrambling, and now they’re going to scramble even more.” Penfield warned that shoppers could face delivery delays of up to two days in mid-December, urging consumers to order early.While most air freight is international — and thus largely unaffected by the FAA directive — the cutback in domestic passenger flights, which carry about 35% of global trade by value, is expected to cause short-term constraints.FedEx said it had made “operational modifications” to keep shipments moving “safely and swiftly,” while UPS assured customers that its network remains “safe, resilient and reliable.” Both carriers said most of their flights operate outside the restricted hours, reducing immediate impact on overnight deliveries.Still, industry leaders warned of ripple effects. Mike Short, president of global freight forwarder C.H. Robinson, said the reduction in commercial flights could tighten domestic air capacity and extend transit times. “Trucks and expedited ground networks can absorb some displaced volume, but not without challenges,” he said.Smaller high-value goods such as smartphones, chips and consoles rely heavily on air transport, and experts say those shipments may face mild disruption. However, ground transport networks are expected to offset part of the capacity loss for domestic parcels.“Air cargo depends on every part of the aviation ecosystem working in sync,” said Brandon Fried, executive director of the Airforwarders Association. “When capacity is cut and federal employees are stretched thin, the supply chain slows — and the longer this shutdown continues, the worse it will get.”Despite the turbulence, logistics experts say the sector has become more resilient and adaptive after years of pandemic-related shocks. “Airlines have become very good at consolidating loads and rerouting via secondary hubs,” said Eytan Buchman, chief marketing officer of Freightos. “In the near term, space may feel tighter, but this isn’t a one-to-one loss in capacity.”For now, industry watchers expect limited delays — but warn that if the shutdown drags into December, America’s holiday deliveries could face their biggest stress test in years.
Business
Shutdown chaos: US air travel could ‘slow to a trickle’, says transport secretary; warns of massive holiday disruption – The Times of India
Air travel across the United States could soon “slow to a trickle”, Transportation Secretary Sean Duffy warned on Sunday, as the prolonged government shutdown continues to paralyse operations and disrupt flight schedules nationwide, AFP reported.Thousands of flights were cancelled or delayed through the weekend as the Trump administration ordered capacity cuts at 40 airports to ease pressure on air traffic controllers, many of whom have been working without pay since federal funding lapsed on October 1.
“Air travel is going to slow to a trickle as everyone wants to travel to see their families,” Duffy told Fox News Sunday, cautioning that the impact will worsen as the Thanksgiving holiday season approaches.The shutdown — now stretching into its sixth week — has forced federal agencies to a near standstill, with many government employees, including airport security and traffic control staff, either furloughed or working unpaid while the political standoff between Republicans and Democrats drags on.“We’re going to see very few air traffic controllers coming to work, which means only a handful of flights will take off and land,” Duffy said. “You’re going to have massive disruption and a lot of angry Americans.”Appearing later on CNN’s “State of the Union”, Duffy warned that the situation could deteriorate further if the budget impasse is not resolved soon.“It’s only going to get worse,” he said. “Many people are not going to be able to get on an airplane, because there are not going to be that many flights if this thing doesn’t open back up.”The continued shutdown has raised concerns among airlines and unions about passenger safety, scheduling bottlenecks, and economic losses, with analysts estimating billions of dollars in lost productivity across the aviation and tourism sectors.The Federal Aviation Administration (FAA) has said it is prioritising essential services, but widespread absenteeism among staff has already led to longer wait times, route delays, and reduced capacity.
Business
Child benefit: HMRC to review thousands of suspended payments
Eimear DevlinBBC Money Box reporter
Eve CravenThe UK’s tax body is reviewing its decisions to strip child benefit from about 23,500 claimants after it used travel data to conclude they had left the country permanently.
Normally the benefit runs out after eight weeks living outside the UK, but many people affected complained that HM Revenue & Customs (HMRC) had stopped their money after they went on holiday for just a short time.
The move came after MPs on the Treasury Select Committee demanded answers from the tax authority.
HMRC has apologised for any errors and says anyone who thinks their benefits have been stopped incorrectly should contact them.
In September, the government began a crackdown on child benefit fraud which it believes could save £350m over five years.
The new system allows HMRC records to be compared with Home Office international travel data, and the tax authority had used this data to stop payments to thousands of families.
But it is now reviewing all of the cases following a growing number of complaints from people affected who said they had been on holiday, and had returned to the UK after a short time.
Eve Craven went on a five-day break with her son to New York. She told the BBC’s Money Box programme that about 18 months after the trip she received a letter saying the child benefit for her son had been stopped.
The letter cited her trip to the US, saying it had no record of her return.
“It gave me a month basically to give them all the requested information to prove that I’d come back to the UK,” she said.
“It’s just a very big ask for something that they’ve messed up on, and they should have been able to sort out themselves.”
Eve’s child benefit has now been reinstated with missing payments backdated.
The issue was first identified in Northern Ireland, where some families had flown out of the UK from Belfast, but then returned to Dublin – which is in the EU – before driving home over the border.
UK and Irish citizens can travel freely into each other’s countries under the Common Travel Area arrangement.
There are no routine passport checks when travelling through the border between Northern Ireland and the Republic of Ireland, meaning the UK government has no data to show that someone may have returned to Northern Ireland.
It is not clear how many errors have been made in total, or how.
HMRC told Money Box it would be reviewing all past cases “using PAYE data and where continued UK employment is found, will be reinstating payments and making any back payments necessary”.
It is aiming to complete its review by the end of next week.
MPs on the Treasury Select Committee are also now investigating.
Additional reporting by Nick Edser
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