Postal Technology International has reported that "Finnish operator Itella will be testing online newspaper delivery with the electronic iPad reading device at the end of the year. The test will be executed in cooperation with the Borgåbladet newspaper. In the test, the electronic version of the newspaper will be delivered to NetPosti, an electronic mailbox provided by Itella. The objective is to involve five to 10 mail recipient households who already participate in the experiment carried out in Anttila, Porvoo, concerning the electronic delivery of letter mail."

The Maritime Union of Australia has reported that "ITF campaign to get message of workers' rights across to global delivery firm UPS starts in Sydney and does the world rounds. The global Action Day was kicked-off in Oceania by members of the Australian Transport Unions Federation (RTBU, TWU and MUA) led by the ITF President Paddy Crumlin (MUA). The group of top union leaders and truck, train and maritime workers protested outside the UPS facility near Sydney Airport."

The Standard has reported that "Canada Post is promising to return mail delivery to some north St. Catharines residents — if the city installs a sidewalk in front of their homes. About 25 irate residents of the south side of Lakeshore Rd. between Vine and Geneva streets descended on St. Catharines MP Rick Dykstra's office Wednesday morning to complain about Canada Post's sudden cancellation of their mail service."

The Detroit News has reported that "Rain, sleet, and snow can't stop postal carriers from completing their rounds -- but the fear of bedbugs has halted mail delivery to a senior citizen high-rise apartment building. The decision to stop delivering mail to the Warren West Apartments came last week, after a mail carrier encountered exterminators in the lobby, postal officials said. When the carrier was informed the building was being sprayed for bedbugs, she decided to stay away."

The Washington Post has reported that "The U.S. Postal Service, headed toward a loss of at least $7 billion this fiscal year, opened contract talks with its largest union Wednesday seeking cost cuts that could reshape the nation's mail-delivery system. In addition to concessions on wages, health benefits and working conditions, the Postal Service says it must pare its full-time workforce and expand the use of part-timers to stay afloat. Postal officials said that with declining workloads -- Americans have sent 20 percent fewer letters and packages since 2007 -- they can no longer guarantee eight-hour shifts for clerks, mail handlers, carriers and other workers. A shift to part-time and seasonal work will probably be just one sticking point in contract talks that could be the most acrimonious in years as the economic slump and the shift to the Internet continue to eat away at the Postal Service's core business. Union officials said that while they recognize the Postal Service's precarious finances, they will fight to preserve hard-won working conditions and benefits that include the most generous health-care package in the federal government. Negotiations could last six months to a year, Postal Service officials say. If arbitrators step in, the Postal Service could ask Congress to pass legislation that would require them to consider the agency's financial condition." See also GovExec.

According to Modern Materials Handling, "When it comes to versatility and cost, wood, plastic and steel pallets are still the kings of the hill when it comes to the materials used for pallet construction. Together, they account for more than 90% of the pallets on the market. Still, increasing freight costs, new export regulations, and growing concerns over product contamination have pallet users looking for alternatives to traditional pallets."

Online Media Daily has reported that "Coupon Clippers Flocking To Online Deals. The majority -- 54% -- of U.S. coupon users now get their fill of deals online. Still, 80% of U.S. respondents report receiving their coupons in newspapers, and 69% said they prefer receiving coupons by mail."

September 1, 2010

Bloomberg Business Week has reported that "Amazon.com Inc. has approached media companies including Time Warner Inc. with plans to start an online video subscription service to rival Netflix Inc., said three people with knowledge of the talks."

The Postalnews Blog has reported that "In comments filed with the Postal Regulatory Commission (PRC) this week, Netflix has accused Gamefly, the game rentals-by-mail company, of attempting “to manipulate the Postal Service, through the PRC, into offering it favorable mailing rates.” Netflix also issued a warning that a decision in GameFly’s favor could “result in reduced DVD shipment growth from Netflix as well as accelerate the ultimate decline of DVD shipments as Netflix would shift more resource to the digital delivery of content”. The PRC is in the process of investigating claims by Gamefly that the USPS gives Netflix a better deal than it offers Gamefly for mailing DVDs."

The following reports were posted today on the U.S. Postal Service Office of Inspector General website (http://www.uspsoig.gov/).  If you have additional questions concerning a report, please contact Wally Olihovik at 703.248. 2201, or Agapi Doulaveris at 703.248.2286.

• Business Mail Entry Units Mail Verification Procedures (Report Number MS-AR-10-005)
• Internal Controls over Powered Industrial Vehicles at Sites Without the Powered Industrial Vehicle Management System (Report Number NO-AR-10-009).
• Postal Service Patent Management (Report Number DA-MA-10-004)
  Premium Pay at Bedford Park Computerized Forwarding System Unit (Report Number MS-AR-10-006)

The Daily Mail has reported that "Royal Mail workers fiddled figures for nearly four years to try to make the performance of First Class post look more impressive, it was revealed today. An 18-month investigation by the regulator Postcomm today uncovered 'irrefutable evidence' of the 'deliberate and organised' activity. In a devastating analysis, it described how a 'large number' of postmen, including their managers, tried to cheat key performance statistics. Royal Mail has a target that 93 per cent of First Class letters must arrive the next working day after being posted."

As Folio has noted about the business of magazine publishing, "Normally, making a profit is accomplished by one or a combination of two options: reduce expenses and/or raise revenues. Unfortunately for the USPS—outside of work-sharing programs—it can only raise revenues, and exorbitantly so, as in the recent USPS exigent request to raise rates for magazines by 8 percent! This—if continued unabated—could easily close the doors for many printed magazines where a digital alternative is not as effective. Why can’t the USPS reduce its expenses sufficiently to avoid raising rates so much? Union obligations and particularly their retirement benefits. In my opinion, the solution is three-fold: Publishers have aligned themselves with other mailers (overall about 1,000 mailers and associations including the Magazine Publishers Association of America) to form the Affordable Mail Alliance to fight the latest proposed postal rates."

PostCom Members! A special postal issues update on the Postal Service's labor contract negotiations has been posted on this site.

The U.S. Postal Service begins contract negotiations today with the largest of its four unions, the American Postal Workers Union, AFL-CIO (APWU). The APWU represents employees who work as clerks, mechanics, vehicle drivers, custodians and some administrative positions. The current contract expires midnight, Nov. 20. Three other unions represent most other postal employees. Employees represented by the National Association of Letter Carriers, AFL-CIO (NALC) deliver in metropolitan areas; National Rural Letter Carriers’ Association (NRLCA) employees deliver primarily in rural and suburban areas; and, employees represented by the National Postal Mail Handlers Union, AFL-CIO (NPMHU) work in mail processing plants and Post Offices. Contract negotiations for the NRLCA begin September 13. The NALC and NPMHU begin negotiations next year approximately 90-days prior to the contract expiration date.

American Postal Workers Union President William Burrus told his members that "Every contract negotiation brings special challenges, and this will be no different," APWU President William Burrus said at the opening session. "Mail volume is depressed and revenue is down, but we have faced similar circumstances before. "The history of the Postal Service is replete with forecasts of doom and gloom, but such dire predictions have not prevented us from exploring every opportunity to achieve agreement." "Once again naysayers warn of the imminent demise of the Postal Service," he said. "They demand wholesale changes to the foundation we have built over our 40-year history, ignoring the fact that each provision in the expiring contract has a history of give-and-take, the basic element of contract negotiations." "The road will be difficult and the outcome uncertain, but there are components of an agreement awaiting our discovery. I pledge the best efforts of the American Postal Workers Union to find a way to negotiate a new collective bargaining agreement. "

Bloomberg has noted that "The U.S. Postal Service, which lost $5.1 billion in the first half of this year, will seek to cut costs by paring the size of its full-time workforce in contract talks with its largest labor union that start today. “Labor cost is a big piece of our success or not success because it affects prices,” Anthony Vegliante, the service’s chief human resources officer, told reporters in Washington, without discussing bargaining strategies. “We have to look forward and adjust things.” See also the Washington Post.

Baynet.com has reported that "Gilbert Ennis, age 56, of Lanham, Maryland, pleaded guilty today to stealing $59,958.21 in postal stamps from the Marbury Post Office in Charles County where he was the postmaster. As part of his plea agreement, Ennis has agreed to resign from the U.S. Postal Service and pay restitution of $59,958.21 from his federal retirement account."

CEP News (Courier-Express-Postal), published by the MRU Consultancy, has reported that:

’The post’s results have grown considerably more than expected’. Bernard Delpit, La Poste’s CFO, had really good news last week. La Poste’s turnover rose by 3.1% to 10.59bn euros, while the operating result soared by 50% to 678m euros.
TNT’s subsidiary Belgische Distributiedienst (BD) is obviously up for sale. According to unanimous media reports TNT intends to divest Belgium’s leading catalogue delivery service. BD (turnover 2009: 91.6m euros, profit: 8.6m euros) has 27 regional depots in Belgium. Altogether the company dispatches 4bn unaddressed items with its 3,000 self-employed deliverers per year. BD has a market share of 75% in this segment.
Swiss Post’s profit soared while turnover grew moderately in the first half year.
Posten Norden, the merger of Post Denmark and Posten AB, increased its profit despite a decline in turnover in the first half of the year.
Like in the first quarter Posten Norge’s profit significantly increased despite a 2.2% decline in turnover.
In October Deutsche Post will start the Security Cup to eliminate errors in its E-Postbrief service. Teams which want to take part in the search for errors must register themselves and will be seeded with 3,000 euros. The teams have to use their own tools and equipment and must agree to not touch any private data they come across during their work.
More than one million candidates applied for one of the 6,565 jobs at Brazilian Correios in the last weeks.
Deutsche Post could save up to 140m euros annually by outsourcing the entire parcel delivery in Germany.
Qantas Freight will offer its courier and express services under the brand name Qantas Courier in the future.
Belgian La Poste’s rebranding takes shape. In September the new name and logo of bpost will be made popular as part of a media campaign promoting the slogan ’The post is bpost - ready for tomorrow’.
State owned investment trust Khazanah Nasional will decide about the disposal of its 32% stake in Pos Malaysia until the end of this year
Finnish post Itella is testing the digitalisation of letters and subsequent transmission by email since March.
After the difficult business year 2009, GLS Netherlands now records significantly rising parcel volumes.
James Arinaitwe, managing director of Posta Uganda, and some of his executives might stand trial. An investigation which was sanctioned by the parliament comes to the conclusion that Arinaitwe and several managers are guilty of ’abuse of office, influence peddling and nepotism’.
Red faces at Royal Mail. Several thousand households in Scotland unsolicitedly received a porn catalogue. It is still unclear how the brochure, where one may chose from 350 different titles (e.g. ’The Horny Handyman’), could be legally sent through the post.

The MRU, founded in 1992, is the only consultancy in Europe, which has specialised in the market of courier-, express- and parcel services. For large-scale shippers and CEP-services in particular, the MRU provides interdisciplinary advice for all major questions of the market, as there are for example market entry, product design, organisation, and EDP.To learn more about the stories reported above, contact CEP News. (We appreciate the courtesy extended by CEP News to help whet your appetite for more of what CEP offers.)

Multichannel Merchant has told its readers that "Transportation is a huge expense in distribution, so shaving costs in this area is often an operations priority. Simply comparing parcel shipping rates is not enough, however: You need to evaluate all of the associated and trickle-down costs that drive your total transportation spend, including the cleanliness of your customer address data. Your success in controlling costs and providing a positive service experience may directly relate to how well your customer address file is managed and updated. The financial and inventory losses tied to packages that are undeliverable due to bad addresses can be as much as 4% of a marketer’s address file. And with address correction fees costing as much as $10 per incident through some carriers, total costs to support these losses can be debilitating--not to mention the negative effect on the customer shopping experience."

People's Daily has reported that "Private mail will face higher duties under new customs regulations that take effect today, a move widely expected to hamper haiwai daigou, or representative overseas shopping services. The General Administration of Customs will collect duties if the import duty payable on individual mail items is worth more than 50 yuan ($7.34). Previously, the duty on personal mail to and from Hong Kong and Macao was exempt if the value did not exceed 400 yuan ($58.75), and for those to and from other areas, the exemption amount was 500 yuan ($73.44). The change is aimed at fixing loopholes in the tariff system and cracking down on tax evasion through mail, said the announcement."

FoxBusiness has reported that "Dutch postal and express group TNT NV said Wednesday it will increase its rates for sending mail within the Netherlands and to destinations in Europe."

Marketwatch has reported that "Harte-Hanks, Inc. has announced that it had acquired Information Arts (UK) Limited yesterday, August 31, 2010. Information Arts, based in High Wycombe in the United Kingdom, is a provider of data-driven marketing insight to business-to-business marketers across Europe -- and increasingly across the globe. The company delivers a compelling road map of how data insight will dramatically improve multichannel marketing effectiveness and retention programs. This insight is derived from profiling, segmentation, modeling and other analytics, and drives engagements that include marketing data management, data hygiene, data acquisition and data planning."

In response to the wildfires in Russia, local DHL employees have provided their active support in delivering essential goods such as clothes, food, household items and stationery to the affected people. The pro-bono initiative by DHL Express Russia also included the collection of goods as well as a fund raising activity to support the purchase fire fighting equipment and protective clothing for volunteers helping to fight the fires.

Hellmail has reported that:

• IT company Postcode Anywhere will take business stateside next month, as part of a UK Trade and Investment initiative to foster links between British and American companies.

• Swiss Post described its half-year profit as 'pleasing'. In the first half of 2010, Swiss Post generated Group profit of 484 million Swiss francs - an increase of 35 percent on the same period last year. Swiss Post posted good results in all four markets.

• The UK postal regulator Postcomm, today announced that an investigation into Royal Mail’s monitoring of quality of service performance has concluded that the company failed to comply with Licence Conditions 4.8 (a) (ii) and (iii) which relate to independent monitoring of performance. However, the investigation found that the actual quality of service figures had not been affected in any material way, that Royal Mail had not benefitted financially from the conduct investigated and that there was no adverse impact on Royal Mail’s customers.

The Phoenix Business Journal has reported that "The U.S. Postal Service is looking for local retailers to provide services on its behalf. Specifically, the USPS is looking for businesses in the following ZIP Codes: 85016, 85026, 85201, 85224, 85255, 85257, 85258, 85260, 85308 and 85374. Those cover portions of Phoenix, Chandler, Glendale, Mesa, Scottsdale, Sun City and Surprise."

August 31, 2010

The Postalnews blog has reported that "Jerry D. Lane, the former USPS Vice President for the Capitol Metro Area, was found guilty on misdemeanor assault charges in Loudoun County, Virginia District Court on Thursday, and was fined $300."

WNEM has reported that "U.S. Postal Service employees in Saginaw plan to organize an informational picket on Thursday. The demonstration is aimed at informing the public of the benefits of keeping a six-day mail week. According to the Saginaw News, the chief steward for the postal worker's union said federal officials are considering moving all operations out of the city."

The Estonian Free Press has reported that "Estonian Minister of Economics Juhan Parts announced that the partial sale of state-owned Eesti Post will not take place happen before March 2011, when the national Elections for the Parliament are due to take place, Bloomberg reports. There is an absence of unity around the issue from the government according to Parts, who also supported the selling postponement to let the future administration take the decision."

From Online PR News: "Shippers searching for shipping options for are discovering Newgistics. Newgistics has a solid reputation for delivering industry leading results. Shippers' reputations ride on how they deliver. In shipping results are critical. For years Newgistics has supplied competitive shipping options for shippers. If you are looking for a shipping partner, Newgistics is the logical choice. Newgistics is known for quality shipping solutions that reflect well on the reputations of their shippers. For additional information retailers are invited to visit the company web site at http://www.newgistics.com."

From PR Newswire: "Americans hitting the road this Labor Day weekend should consider some advice from the U.S. Postal Service. According to the National Safety Council, nearly 5,900 postal employees have achieved a unique distinction most of us never approach in a lifetime — driving more than 1 million, accident-free miles. No other business comes close."

DMM Advisory: IMb™ Services Update. WEBINARS – MIGRATING TO IMb:  To date, mailers have deposited more than 50 billion mailpieces with Intelligent Mail^® barcodes (IMb). If you haven’t already come onboard, we’d like to remind you that beginning in May 2011, to be eligible for automation discounts on your letter-size and flat-size mailpieces, you’ll need to start using the IMb in place of the POSTNET™ barcode. In May 2011, the POSTNET barcode will be ineligible for automation prices and the IMb must be used to claim automation prices with either the Full-Service option or the Basic option.

The latest issue of Postal Technology International is now available online.

The Courier, Express, and Postal Observer has reported that "Based on what is happening in Great Britain, competition in the mail business in the United States could make it easier for advertisers that are hesitant to use mail or other forms of delivery of printed advertising to manage the process. Clearly having multiple delivery companies marketing services could help expand the market. The largest mailers will likely not need the services similar to those that TNT Post and Royal Mail are offering and continue to use the large printers to manage their needs."

From PR Web: "To educate mailers and the postal industry as a whole about the critical changes happening with the United States Postal Service®, Window Book, Inc. has released an informative, 29-page white paper titled, “Intelligent Mail Full-Service: Critical Steps to Understanding and Implementing.”

The Sentinel Source has reported that "Three Republicans are competing for a chance to challenge Democrat John Shea of Nelson for the District 2 seat on the state’s Executive Council. Among them: James Adams. He is retired from the U.S. Postal Service, where he acted as the chief of staff to three postmasters general. He says that while in that role he was able to cut $14 billion from the budget by eliminating redundant high-level positions. Adams says state spending can be reduced by eliminating redundancy and requiring contractors to bid competitively for state contracts. [EdNote: Go get 'em, Jim.]

Post & Parcel has noted that "Posten Norden has announced that it has improved its operating earnings through long-term cost adjustments during the first half of 2010."

Postal news from Hellmail:

• This week sees a further step forward in a complete rebranding of Belgium's main postal provider (formerly La Poste) to bpost NV.

• Pitney Bowes will reveal innovative ways to automate mail delivery for both public and private Posts at Post Expo, the world’s leading annual event for the international postal, express and mailing industry. At the Copenhagen event, Pitney Bowes will unveil the newest addition to its sorting hardware portfolio designed to automate more offline mail handling processes faster and more accurately. Specific details will be announced at the show on Wednesday, October 6, 2010.

• Hybrid mail provider CFH Docmail has extended its range of on-line mailing services with the introduction of personalised colour postcards. Whether for appointment reminders, invitations, promotional material or other company messages, Docmail’s postcards can be compiled quickly and easily via the online portal at www.cfhdocmail.com.

From the Federal Register: Postal Regulatory Commission   RULES New Postal Products , 53216–53218 [2010–21694] [TEXT]  [PDF] NOTICES New Postal Products , 53353–53355 [2010–21693] [TEXT]  [PDF]

August 30, 2010

The Associated Press has reported that "For a decade, West Africa's main connection to the Internet has been a single fiber-optic cable in the Atlantic, a tenuous and expensive link for one of the poorest areas of the planet. But this summer, a second cable snaked along the West African coastline, ending at Nigeria's commercial capital, Lagos. It has more than five times the capacity of the old one and is set to bring competition to a market where wholesale Internet access costs nearly 500 times as much as it does in the U.S. It's the first of a new wave of investment that the U.N.'s International Telecommunications Union says will vastly raise the bandwidth available in West Africa by mid-2012."

From Media-Newswire: "Ronald R. Bassak, and his construction company, Meccon, Inc. admitted in United States District Court today that he and his company paid a U.S. Postal Service contracting officer approximately $100,000 in bribes in order to secure contracts for his company. During the investigation, the contracting officer committed suicide at his Westerville home."

The U.S. Postal Service Office of Inspector General invites you to comment on this week’s “Pushing the Envelope” blog topic: (Postal Employees) Having Problems with Your Time and Attendance Records? The OIG Wants to Hear From You. The OIG’s Human Resources and Security Team is interested in hearing from Postal Service employees who might be experiencing problems with their time and attendance records. Take the OIG’s survey and share your comments here. The following reports also have been posted today on the U.S. Postal Service Office of Inspector General website (http://www.uspsoig.gov/). If you have additional questions concerning a report, please contact Wally Olihovik at 703.248. 2201, or Agapi Doulaveris at 703.248.2286.

• City Delivery Efficiency Review – Bay-Valley District (Report Number DR-AR-10-007).
• Facility Optimization: Chicago District (Report Number DA-AR-10-009).
• Facility Optimization: New York District (Report Number DA-AR-10-010).
• Facility Optimization: Northern New Jersey District (Report Number DA-AR-10-008).

DM News has reported that "Young consumers may live their lives online, but they trust offline marketing pitches more than web-based ones, according to a survey. The poll also found privacy is a concern for all age groups. Thirty-six percent of US households and 38% of Canadians said mail information is more private than e-mail, compared to 29% of US respondents and 35% of Canadians in 2008. However, the study noted that only 25% of respondents are getting more postal mail now than a year ago, while 72% of US households and 66% of Canadians say they're getting more e-mail."

From the Courier, Express, and Postal Observer:

• The GDP numbers released last week were disappointing. Yet, the numbers for the Postal Service and advertising in general were not that bad. Why is that? It is simply that sales to domestic purchasers -- which include consumers, businesses and the government -- rose 4.3%. An an industry that depends on its ability to grow the sales of firms that sell products and services to consumers and business, having customers whose business is growing faster than the economy is good news. So why does the economy seem to be slowing down? The reason is four fold.
• This weekend, the publisher of Oxford English Dictionary announced that the next edition will be published in digital format only.

At the Postal Regulatory Commission:  September 01, 2010 - Notice: Public hearings in Docket C2009-1 are scheduled for Wednesday, September 1 and Thursday, September 2. Both hearings will begin at 9:30 a.m. Links to the audio will be posted here approximately 10 minutes prior to the broadcasts.

August 29, 2010

Veterans Today has asked: "President Obama: Why Are You Allowing Your Postmaster General to Run a Plantation?"

CBC has reported that "Staffing decisions by Canada Post have resulted in unacceptable delays in mail delivery, the union representing letter carriers in British Columbia says. Canada Post hasn't been backfilling employees who become ill or take leave, Ken Mooney of the Canadian Union of Postal Workers told CBC News. "The non-delivery has a ramification on the community, of course, because people depend on GST cheques and family allowance cheques and various other correspondence, and they depend on Canada Post for that service," Mooney said."

"USA Today, the nation's second largest newspaper, announced this week a major restructuring effort designed to address a drop in advertising and circulation and bring it up to speed in today's new world of smartphones and tablets." [EdNote: And the Postal Service is doing . . . . what?]

Zawya has noted that "The services of Empost, the national courier company, are now available at main post offices across the UAE."

From PR Web: "She was the only woman, as of 2010, who rose from a clerk in the Georgia Southern College Post Office to Deputy Postmaster General in the United States Postal Service. In an inspiring memoir, MS. DEPUTY POSTMASTER GENERAL, author Jackie A. Strange shares with readers her remarkable achievements and how trusted leadership, courage, and innovations impacted the postal service. Under physical and mental duress, she achieved unprecedented records and saved billions of dollars for the postal service—the largest non-military job in the world with 800,000 employees and a $32 billion (in 1983 dollars) budget—through innovative programs."

August 28, 2010

Reuters has reported that "Deutsche Post, the successor to the German federal postal service, will offer bounties for bugs researchers find in its E-Postbrief secure message service, the company announced this week. The firm, which also operates the DHL overnight delivery service, will kick off a contest in October after it pre-approves research teams that apply for what it's calling the Deutsche Post Security Cup. Each team will be seeded with ?3,000 ($3,800), but must use their own tools and agree to not touch any private data they come across during their work. The teams must also keep quiet about any vulnerabilities they find until December, when Deutsche Post will award prizes and reveal the bugs it's patched."

From the Federal Register: Postal Regulatory Commission   NOTICES New Postal Products , 53002–53003 [2010–21423] [TEXT]  [PDF] Product List Transfer , 53003–53004 [2010–21438] [TEXT]  [PDF]

Long-time newspaper postal advocate, Max Heath, wrote in the Georgetown News that "Members of the National Newspaper Association, which publish about 2,000 community newspapers across America, do the same. I serve as its long-time Postal Committee chairman. That’s why I want to respond on behalf of them and other mailing industries in Kentucky to the recent opinion piece printed in many state newspapers by Ellen Williams of Kentucky, member of the United States Postal Service Board of Governors. The United States Postal Service has decided to place an unnecessary burden on Kentucky’s families, workers and businesses by proposing a major price increase. Fortunately, Gov. Williams can help stop this, and that’s what citizens in Kentucky should be asking her to do, instead of rubber-stamping postal management decisions."

The Daily Camera has reported that "The U.S. Postal Inspection Service is offering a reward of $1,000 for information related to the recent destruction of mailboxes in Boulder. Police believe the mailboxes were damaged with homemade explosive devices. Read more: U.S. Postal Services offers reward for information about destroyed Boulder mailboxes."

Hellmail has reported that "Norway Post achieved earnings before non-recurring items and write-downs of NOK 511 million in the first half of 2010 - an increase of NOK 130 million compared to the same period last year, although addressed mail volume fell by 7.4 per cent. The improvement in earnings was achieved despite the half year being affected by declining volumes in the mail and logistics segments, a lower level of activity in the IT market and a strike in the transport sector."

August 27, 2010

DMM Advisory: IMb™ Services Update. New FAST Help Desk (August 30, 2010): As announced in the Facility Access and Shipment Tracking (FAST^®) 14.3.0 Release Notes (August 15, 2010), the Postal Service™ will launch the new FAST Help Desk effective Monday, August 30. The FAST Help Desk will be available to assist with application and operation-related issues by:

• Email at FAST@usps.gov.
• Telephone at 877-569-6614. The FAST Help Desk telephone number efficiently directs calls through a new IVR network to ensure prompt routing of customer inquiries.    

The FAST Help Desk hours of operation will be Monday through Friday, 7:00 a.m. to 7:00 p.m. CT. Telephone support will be available outside of these hours including weekends and holidays. If the Help Desk is unable to provide an immediate resolution, a Remedy Ticket will be activated and escalated to the appropriate postal functional entity. All FAST Remedy Tickets will follow the established Issue Resolution Process.  The FAST Welcome pages have been updated to reflect the new FAST Help Desk contact information.  

A copy of the Postal Service Customer Relations Department organizational chart has been posted on this site.

The Parcel Shippers Association (PSA) and the Direct Marketing Association (DMA) have asked the Commission to issue a Commission Information Request (“CIR”), seeking information necessary to fully understand the cost, revenue, market and other factual bases upon which the Postal Service’s proposed transfer of Standard Mail Fulfillment Parcels relies."

Press Release: "Announcing... a revolutionary digital publishing service that helps clients market and distribute print materials in easy-to-read digital editions via e-mail and the Internet using only a standard Web browser! Nxtbook Media — LLC helps publishers provide digital versions of their magazines, catalogs, travel and other collateral. If you want to lower your distribution costs, reach a wider audience and increase advertising revenues, Nxtbook Media will convert your printed magazine into an online magazine, also known as a digital magazine or e-magazine. We can also optimize print catalogs, travel and other collateral materials into digital versions."

Washington's Blog has noted that "U.S. Postal Service Starts Quoting SDR to Dollar Conversion Rates, and IMF Endorses Replacing Dollars with SDRs."

The Financial Times has reported that "A Kosovan plan to sell hundreds of millions of euros of state telecom assets has prompted warnings of legal repercussions from Serbia, setting off another skirmish in the former Yugoslavia’s most stubborn ethnic dispute. Kosovo’s ministry of finance and economy has called for pre-qualification bids by September 13 to buy large tranches of shares. The planned 75 per cent sell-off encompasses fixed-line, wireless and mobile communications subsidiaries, while the unreformed, inefficient postal service stays in state hands."

 
The latest issue of the PostCom Bulletin is available online. In this issue:

• Through newly released memos, the Washington Times has reported that the Postmaster General and top officials gave postal inspectors varying accounts about the decision to allow a top executive to retain his six-figure outside corporate jobs while working full time, earning more than $230,000 as a vice president of shipping, for the USPS.
• The Postal Service published its unaudited July results with the Postal Regulatory Commission. USPS lost $764 million in July 2010. This is brings the year-to-date loss to $6.0 billion.
• The Congressional Research Service has released its report - The U.S. Postal Service’s Financial Condition: Overview and Issues for Congress. The report provides an overview of USPS’ financial condition, recent legislation to alleviate the USPS’ financial challenges, and possible issues for the 111th Congress.
• According to the Courier, Express, and Postal Observer, “readers that are expecting an answer to the question in the title will be disappointed. The truth is I do not know. However, I do know that the most recent forecasts, or at least those contained in the exigent rate case are woefully out of date even though they are at worst 6 months old.”
• The Affordable Mail Alliance - a growing coalition of non-profits, Fortune 500 companies, small businesses, major trade associations, consumer groups, and citizens representing the vast majority of the mail sent in the United States - today announced the addition of its one thousandth member group.
• Marketers brace for paper cost increase. Digital advertising is being clobbered by traditional media. MTAC forms new workgroup. PRC established docket for SM parcel transfer. Meredith mag puts video in select copies. Latest USPS org chart available. GovDelivery and Zumbox partner to reduce paper mail. FedEx board declares quarterly dividend. APWU President speaks at union’s national convention. USPS identifies two key ideas from MTAC symposium. UPS reduces expected number of furloughed pilots. Leaving the mail stream: Verizon.
• An update on DMM Advisories issues by the U.S. Postal Service.
• An update on postal rules and notices published in the Federal Register.
• An update on business before the Postal Regulatory Commission.
• An update from the USPS Office of Inspector General.
• A review of postal news from around the world.
• Postal previews

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The Financial Express has reported that "The government on Thursday approved second phase of modernisation of post offices at a cost of Rs 1,877 crore. As per the decision, all departmental and Grameen Dak Sevak (GDS) post offices in the country will be computerised. The approval has also been accorded for creation of IT infrastructure, including establishment of data centre, networking of the departmental post offices, development of scalable, integrated and modular software for all operations of the postal department. The project will be implemented over a three year period covering till 2012-13."

The Wall Street Journal told its readers: "Here’s a question: What does a world-leading logistics and mailing company that already delivers 70 million letters a day do for growth? European Pressphoto Agency If you’re Deutsche Post AG, the former state-owned German mail authority, you deliver online advertising. Earlier this week, Bonn, Germany-based Deutsche Post acquired nugg.ad AG, Europe’s largest targeted online ad platform according to the company for an undisclosed sum. With the purchase, it seems Deutsche Post wants to be king of the online ad market. “The acquisition of nugg.ad is our first step into the online advertising market,” Ingo Bohlken, head of marketing for Deutsche Post, told German daily Frankfurter Allegemeine Zeitung. “We want to offer the European advertising market a steady, independent technology platform,” he said."

An online blog has noted that "The U.S. Postal Service (USPS) already facing a $420,000 worker endangerment fine for faulty electrical work at a Vermont mail distribution center has now been slapped with a $350,000 fine for similar violations in New Hampshire. The Occupational Safety and Health Administration (OSHA) says that, just like it did in Vermont, the USPS had knowingly assigned untrained and unqualified workers to perform "troubleshooting and voltage testing on or near live electrical equipment and wiring that had not first been de-energized." "These citations and the sizable fines proposed here reflect the Postal Service's ongoing knowledge of and failure to address conditions that exposed its workers to the severe and potentially deadly hazards of electric shock, arc flashes and arc blasts," said Assistant Secretary of Labor for OSHA Dr. David Michaels in a press release. The really bad news is that by filing "enterprise-wide" complaints against the USPS for these electrical work safety violations, OSHA is implying that more fines for more violations at more postal facilities could be coming. With the USPS losing another $3.5 billion in the third quarter of 2010, you have to wonder - but not for long -- who's going to pay for all this?"

Post & Parcel has reported that "Swiss Post has generated Group profit of 484m Swiss francs for H1 2010 - an increase of 35% year on year. Swiss Post posted good results in all four markets, primarily due to a rise in customer deposits, higher net interest income and the revival of the economy, the company said.

The Next Web has reported that "Home video rental giant Blockbuster is reportedly preparing to file for bankruptcy next month as it struggles to cope with competition from Netflix, Lovefilm and Redbox, companies who have revolutionised the rental industry with their postal and on-demand services."

The Washington Post has reported that "The Carlyle Group suffered a rare setback Wednesday when one of its portfolio companies, toy supplier Oriental Trading Co., filed for bankruptcy protection, citing heavy debt and higher shipping costs. Carlyle bought Oriental Trading in June 2006, during the heady days of the buyout boom, for $1 billion. But the heavy debt load, higher postal rates and the weak economy proved too much for the Nebraska firm. "Dramatically increased postal costs and the Great Recession took their toll on expenses and revenues at the company," Carlyle spokesman Chris Ullman said. "

APWU members vowed to escalate the fi ght against the Postal Service’s plan to eliminate Saturday mail delivery on the fourth day of the union’s 20th Biennial National Convention, unanimously approving a resolution to engage in “rallies, marches, and pickets” in concert with other unions and public interest organizations. The declaration also denounced the “ force relocation” of postal workers and other USPS attacks."

According to the Detroit News, "Tuesday's march in Detroit against the proposed ending of Saturday mail delivery should be seen for what it was: an effort to sustain union jobs and benefits even as the U.S. Postal Service hemorrhages billions of dollars trying to sustain what may no longer make sense."

From the Federal Register:  Postal Regulatory Commission   NOTICES New Postal Product , 52786–52788 [2010–21329] [TEXT]  [PDF]

The Washington Times has reported that "The executive in charge of the U.S. Postal Service's $13 billion supply-management operation has acknowledged "cracks in the system," saying more than 30 percent of the agency's contracting-officer positions remained unfilled. The statements by Susan Brownell, vice president of supply management, were made earlier this year in a previously undisclosed interview with the Postal Service's Office of Inspector General, which was looking into the award of no-bid contracts by a former top postal executive to his former business associates. The inspector general's investigation, which ended this summer, found that several of the contracts awarded by the Postal Service's former top marketing officer violated postal policies and procedures. . . . The Postal Service said it "is not commenting on individual statements made by executives to the inspector general's office during its investigation."

August 26, 2010

The Memphis Democrat has reported that "Rural route or street address? The question has been put to rest by the United States Postal Service in the city of Memphis as official addresses for mail delivered within the city limits have been switched over to the city’s assigned street address. Memphis Post Master Monica March said the process is ongoing, with most affected residents receiving notification at the end of the July. Gail Bell of the USPS address management systems explained the changes. She said the postal service inadvertently issued rural box numbers in place of city-style addresses assigned by the City of Memphis several years ago. The USPS will continue to deliver mail addressed with the old rural route information for one year. All affected patrons are encouraged to make address changes with all regular mailers as soon as possible over the next 12 months. After that time period all mail sent to the former rural route address will be returned to sender."

Business Daily Africa has reported that "The postal and courier businesses are experiencing a decline in the number of letters sent as most Kenyans embrace e-mails and e-commerce, a new report from the industry regulator says. The statistics released by Communication Commission of Kenya (CCK) early this week indicate that the number of letters sent by courier services declined 35.7 per cent from 113,781 during the previous quarter to 73,162 this quarter. During the same period the number of letters sent using postal services fell to 23 million from 25 million letters the previous period. A decline of 9.7 per cent. International incoming letters fell 16.6 per cent from the previous quarter and 25.6 per cent compared to the same period last year."

The Wall Street Journal has reported that "French state-owned postal operator La Poste on Thursday said it is in exclusive talks with mobile operator SFR, subsidiary of French media conglomerate Vivendi SA to launch mobile services under the La Poste brand."

From PR-USA.net: "To facilitate the needs of their international customers MyAddressUS.com has announced the launch of a new updated online package management tool, which provides customers easier international US online purchasing, package management and package forwarding solution."

Dead Tree Edition has told its readers that "The Postal Service's sole-source contracts with associates of former executive Robert F. Bernstock had the tacit approval of Postmaster General Jack Potter, according to documents published last night."

The Courier, Express, and Postal Observer has told its readers that "The Postal Service filed their July 2010 preliminary financials with the Postal Regulatory Commission and the results raise more questions about its financial viability and its ability to develop realistic financial plans."

The Washington Times has reported that "The U.S. postmaster general and his top officials gave investigators varying accounts about the decision to allow a top executive to retain his six-figure outside corporate jobs while working full time, earning more than $230,000 as a vice president of shipping, for the U.S. Postal Service, records show. Newly released memos of extensive interviews conducted earlier this year by the U.S. Postal Service's office of inspector general with Postmaster John E. Potter and other executives provide a rare look into the operations in the top reaches of the Postal Service. The documents also suggest that executives deferred to their former top marketing officer, Robert Bernstock, even as some inside the agency began raising questions about his outside business interests."

Business Daily Africa has reported that "Kenyan companies are adopting electronic funds transfer as a method of paying dividends and other dues to shareholders in a move meant to enhance efficiency and reduce costs incurred in tracking uncollected cheques."

The Toronto Sun has reported that "Rules are rules, says Canada Post, even for double-amputee Tom Thompson, who will have to move his mailbox at least 150 feet to comply with new regulations regarding box placement. “I guess it’s a safety issue for their drivers,” said Thompson, who lives in Simcoe, Ont. “I guess it’s not a safety issue for me when I have to wheel through a foot of snow down the road to get my mail.” Thompson has lost both legs to complications of diabetes. He says the situation is “nuts” because while he has a Decou Road address, his home and mailbox front onto Willow Wood Drive — a short dead-end street with 11 homes. CUPW has complained that rural delivery is ergonomically unsafe for lone drivers. As a result, many delivery vehicles now carry two people — one to drive and one to fill mailboxes. CUPW has also made an issue of the safety of rural delivery routes." [EdNote: You remember CUPW, don't you. Those are the folks who believe every effort should be made to deliver mail to Gaza (despite the Israeli gunboats), but can't see fit to make mail delivery to a double amputee more convenient.]

August 25, 2010

At the Postal Regulatory Commission:  The Postal Service's Preliminary Financial Information for July 2010 has been posted on the PRC web site.

Press Release: "BÖWE BELL + HOWELL (BBH) today announced the availability of a new service offering that provides small to mid-sized mailers with access to the kind of sophisticated document and data-processing capabilities that are traditionally found only in high-volume production mailers. For more information, contact marketing@bowebellhowell.com or call 1-800-220-3030."

The Kansas City Star has reported that "The U.S. Department of Labor intends to fine the U.S. Postal Service Bulk Mail Center in Kansas City, Kan., for "numerous serious and repeat safety violations." The Occupational Safety and Health Administration proposed a $191,000 penalty after an onsite investigation found hazardous working conditions. Problems cited include "deficiencies in walking/working surfaces, fall protection, sling use, machine guarding, welding and electrical equipment." Also cited were problems associated with "exit routes, eye wash facilities, electrical equipment and hazard communication." [Hundred thousand here, hundred thousand there. Next thing you know it adds up to real money.]

From Canada Post: "Thomas Schmitt, SVP FedEx Solutions is joining Purolator as its new President and CEO. Louis O’Brien, Canada Post, Senior Vice-President and President of the Parcels Line of Business will now be Senior Vice-President, Chief Customer Officer."

The Courier, Express, and Postal Observer has asked: "Are the Postal Service's Earnings Forecast Too Optimistic?"

As the National Post put it: "It’s been too long since we’ve had a Canadian union do something bizarre. So nice of the Canadian Union of Postal Workers to step up to the plate and demonstrate, for the umpteenth time, the strange obsession Canadian organized labour has with rocking boats. Or in this case, a cargo ship. Isn’t it a bit weird that Canadian postal workers are suddenly willing to brave the power of the Israeli Navy to get mail to Gazans when they’re so easily deterred getting mail to you and I? If it snows more than a centimetre or two in Toronto, little notices get put into mailboxes announcing that delivery is suspended until safety conditions in front of the house are improved — i.e. the steps gets shovelled. (Of course, postal workers have to risk death on slippery front steps to deliver the warning, but that’s just another example of their heroic devotion to duty.) In Moose Jaw, delivery was recently cancelled due to the danger of mean birds."

"The U.S. Postal Service’s Financial Condition: Overview and Issues for Congress" Kevin R. Kosar Analyst in American National Government July 29, 2010

The Affordable Mail Alliance – a growing coalition of non-profits, Fortune 500 companies, small businesses, major trade associations, consumer groups, and citizens representing the vast majority of the mail sent in the United States – today announced the addition of its one thousandth member group.

The Washington Post has reported that "FedEx sued New York Attorney General Andrew M. Cuomo, claiming he is overstepping his authority in a state investigation of the company's rates, routes and services. Cuomo notified FedEx in June that his office was investigating the company's insurance policies and coverage for items it ships. His office served a subpoena upon the firm on June 8, 2010, seeking information about FedEx's "rates routes, prices and or services," the company said in its complaint. FedEx has until next week to respond to the subpoena."

The Star has reported that "Through rain, sleet and an international blockade, the Canadian postal workers union is serious about getting mail to Gaza. The union is throwing its support behind a coalition of Islamic and human rights organizations planning to steer a Canadian-registered boat through the Israeli blockade of the Palestinian territory this fall. Such a stamp of approval comes after Israel Post halted mail to the area earlier this month. Canada Post wants to be clear: “This effort is in no way affiliated with or supported by Canada Post,” the Crown corporation said in a statement."

The Associated Press has reported that "Hundreds of postal workers attending their national convention in Detroit marched Tuesday in protest of plans to suspend mail delivery on Saturdays. The Detroit News reports that the blue-shirted American Postal Workers Union members chanted "Five day, no way" as they walked Tuesday from Cobo Center to Campus Martius. The Rev. Jesse Jackson and U.S. Rep. John Conyers participated."

Hellmail has reported that "Consumer Focus Post, the Northern Ireland arm of UK watchdog Consumer Focus, is calling on Royal Mail to be more transparent about the performance of First Class mail delivery between Britain and Northern Ireland. It must also make sure the service meets the UK-wide standard for 93% of first class mail to be delivered the next working day, set by the regulator Postcomm."

Bernama has reported that "Pos Malaysia Bhd's earnings in financial year 2011 will grow by 66.4 per cent from financial year 2010 as full contribution from the postal tariff hike takes effect, according to OSK Research."

From the Federal Register:  Postal Service.

• Environmental Assessments; Availability, etc.:   Mobile Fueling Operations, Nationwide ,   52377 [2010–21149] [TEXT]  [PDF]
• International Product Changes:   United States Postal Service Inbound Competitive Multi-Service Agreements with Foreign Postal Operators ,   52378 [2010–21147] [TEXT]  [PDF]  
• United States Postal Service Inbound Market-Dominant Multi-Service Agreements With Foreign Postal Operators ,   52378 [2010–21148] [TEXT]  [PDF]
• Transfer of Commercial Standard Mail Parcels to Competitive Product List , 52378 [2010–21146] [TEXT]  [PDF]

August 24, 2010

According to SmarTrend, "the top five companies in the Air Freight & Logistics industry as measured by return on equity (ROE). The ROE is a general indication of the company's efficiency; Investors usually look for companies with ROEs that are high and are growing. United Parcel Service, CH Robinson Worldwide, Expeditors International of Washington, Park-Ohio Holdings,and Atlas Air Worldwide Holdings.

From PR Newswire: "The U.S. Postal Service is modifying mailing regulations of tobacco shipments from the U.S. to APO/FPO/DPO destinations by expanding shipping options to include Priority Mail service with Delivery Confirmation." See also Federal Times and Global Pensions.

From Federal News Radio: "Is there a solution in sight for the Postal Service's debt woes?" Lorie Nelson, the Director of Financial Reporting for the USPS Office of Inspector General, explains how the Postal Service might be able to use at least $5.5 billion of the $6.8 billion surplus in the Federal Employees Retirement System.

The Courier, Express, and Postal Observer has reported that "Today, Verizon launched a campaign to convince more residential phone customers to both receive their bills electronically and pay electronically. Verizon expects the promotion will increase electronic bill presentment to rise by 250,000. Following the promotion, Verizon will have around 16% of its customers both receiving bills electronically and paying electronically."

At the Postal Regulatory Commission: The transcript of the PRC Rapid City, SD hearing on the five-day service proposal has been posted on the PRC web site.

The latest Postal Service headquarters organizational chart has been posted on this site.

From Business Wire: "GovDelivery, the leading provider of government-to-citizen communication solutions, and Zumbox, the leader in digital postal mail services, today announced a partnership to aid government agencies and municipalities across the United States in dramatically reducing the financial and environmental costs associated with sending paper mail."

AdWeek has reported that "According to Borrell Associates, political ad spending will reach $4.2 billion this year, double the $2.1 billion the firm estimated was spent in 2008." [EdNote: Hey. You wanna reach voters? Reach 'em by mail. With less mail in mailboxes today than during elections past, a well-designed ad is sure to catch voters' attention. So . . . exactly what has the Postal Service done to promote mail to electioneering politicians?]

The Board of Directors of FedEx Corporation has declared a quarterly cash dividend of $0.12 per share on FedEx Corporation common stock. The dividend is payable October 1, 2010 to stockholders of record at the close of business on September 10, 2010.

The Belfast Telegraph has reported that "The Government has been urged to drop Royal Mail privatisation plans after a new survey of 2,000 people showed most people wanted the postal service to remain publicly-owned. Just one in seven polled by Labour leadership contender Ed Balls and the Communication Workers Union (CWU) said they supported the privatisation plan."

DM News has reported that "Direct marketers and catalogers are preparing to face paper cost increases this fall, while also planning for a possible significant postal rate increase in January. Marketers say volatility in the paper market in recent years, due to economic instability, has made it difficult for them to project costs from one year to the next. Many marketers are facing paper price increases of as much as $3 per 100 pounds this fall, on top of prior hikes in April and July, according to notices from paper mills and industry experts. The increase means a 7% to 10% cost increase for buyers, depending on the mill and type of paper. “This is not good news for catalogers,” said Hamilton Davison, president and executive director at the American Catalog Mailers Association. “They're going to get a postage increase that's six-times the rate of inflation and a paper cost increase that is nine times the inflation rate [for the year]."

Trading Markets has reported that "Germany-based postal services provider Deutsche Post is acquiring Germany-based online targeting platform nugg.ad to expand its competence as a service provider in the online advertising market. Nugg.ad will continue as independent targeting service provider for marketers and advertising agencies from the company's headquarters in Berlin."

The Times of Malta has reported that "MaltaPost has been awarded the World Mail Security Award during the 11th World Mail awards held in Copenhagen, Denmark. The World Mail Awards were conceived as a result of discussions at the internationally recognised World Mail & Express Conferences – the unique forum for industry leaders and key decision makers to discuss strategy."

CapitalVue has noted that "Nationwide postal service companies and large-scale express delivery companies generated an operating revenue of 72.84 billion yuan in first 7 months of 2010, up 19 percent year-on-year, reports Yicai.com, citing statistics published by the State Post Bureau. Revenue in July grew 12.8 percent year-on-year to 9.58 billion yuan, according to the State Post Bureau. The shipping volume of nationwide postal service companies and large-scale express delivery companies in the first 7 months of 2010 reached 1.23 billion, up 23.6 percent year-on-year. Express delivery shipping volume in July grew 18.7 percent from year-on-year to 190 million."

It isn't only in America . . . . Hellmail has reported that "TNT Post has lost an appeal against a rejected planning application for a new distribution centre on the outskirts of Derby. The proposed industrial development had originally been rejected by Derbyshire District Council but despite an appeal, the decision to turn down the planning application was upheld by government inspectors, agreeing with Derbyshire District Council that the development would impact on nearby listed buildings."

Mlive has reported that "More than 3,000 members of the American Postal Workers Union are expected to march from Cobo Center to Campus Martius in downtown Detroit today in an act of protest against management proposals to end Saturday mail delivery."

"APWU President William Burrus told delegates to the 20th Biennial National Convention that the union is “alive and strong.” Despite the nation’s frail economy, “We can point with pride to the fact that our members were shielded from the tragic effects of layoffs and downsizing,” he said."

Aol News gave a pop quiz -- "Based on Congress' legislative output over the past year and a half, what do you think is the most pressing issue facing the country? The crummy economy? Terrorist threats? Health care costs? The sorry state of education? National defense? Global warming? Immigration? Answer: None of the above. Nope, the biggest problem facing America today is ... the desperate lack of appropriately named post offices."

According to Advertising Age, the "boom in multigenerational households has wide implications for ad industry."

Media Daily News has reported that "Streaming video advertising will see continued big growth -- increasing more than 60% to $5.6 billion next year."

Printing Impressions World has noted that "Against all odds, traditional advertising is perceived by consumers as more informative, entertaining and necessary than online advertising. Of more than 1,200 people surveyed for digital marketing show ad:tech London by Zussi Research, 69 percent believed traditional advertising was relevant to them, compared with 45 percent for online. For the TV target audience—those aged between 25-34-years old—the gap widens further: 81 percent (traditional) vs. 53 percent (online). Worse still for digital marketers, annoyance around advertising on the Web is twice as high online as offline. Comments made were that digital advertising is "ill-structured," "mainly irrelevant" and represents a bigger, unwanted distraction for the consumer, rather than a subtle influence."

From Business Wire: "Pitney Bowes Inc. has announced it is offering a new tabletop, dual-head tabber system for U.S. mailers. The Pitney Bowes W360 Multifunction Tabber System provides several tabbing applications and stamp affixing in one solution to help mailers meet the latest United States Postal Service (USPS) tabbing regulations and efficiently prepare letter-size self-mailers and booklets for delivery."

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