Postal News from July 2005
July 31, 2005 -- The Asbury
Park Press has reported that "Members of the American Postal Workers
Union will picket the Contract Postal Unit in the Silverton Pharmacy — which
was lauded by politicians when it opened in mid-July — between 9 a.m. and noon
Sunday. Bob Romanowski, the clerk craft director for the union's Jersey Shore
Local, said workers will hold an informational picket to tell customers their
mail is not being handled by professional postal clerks."
July 31, 2005 -- The Sunday
Independent has reported that "POSTAL services around the country could
be slashed under recommendations currently under consideration by the board of
An Post, the Sunday Independent can reveal. A report endorsed by the Labour
Court proposes giving "low priority" to some postal routes and
"collapsing" others in the event of staff absences. A technical group
seeking a resolution to a row over wages at An Post wants to close some offices,
limit the collection of undelivered mail to a three-hour period, cease the
already minuscule number of Saturday deliveries, and prevent postmen from
leaving early to do their rounds. The 63-page document, seen by the Sunday
Independent, recommends stopping the sorting of mail on Saturdays and says
collections on Sundays and public holidays should cease. It also suggests
"commercial customers" should be "prioritised" for early
deliveries."
July 31, 2005 --
According to The
Telegraph, "Paul Carvell, the chief executive of Business Post, the
UK's only quoted postal services operator, is anticipating the New Year as
eagerly as a child looking forward to Christmas. Carvell is desperate for the
liberalisation of the mail market, due in January, which is when any mail
handler will be able to offer postal services to any customer. That right is
restricted to the Royal Mail at the moment."
July 31, 2005 -- The
Observer has reported that "The Communication Workers' Union is warning
of industrial action in Scotland and across northern England over changes to
Royal Mail workers' pay and conditions."
July 31, 2005 -- The Daily
Mail has reported that "HARD evidence that Royal Mail could lose
swathes of Government business to private contractors has emerged with the
revelation that two major Whitehall departments are planning trials of rival
postal services. Could the Royal Mail lose lucrative Government contracts? The
Department for Work & Pensions, with responsibility for a range of benefit
payments, and the tax-collecting Revenue & Customs are the two biggest
Government users of postal services. Both are to test new systems within weeks.
The moves will add urgency to demands from Royal Mail chairman Allan Leighton
that it should be freed from price controls and allowed to partprivatise the
national postal system so it can raise funds to compete.
July 31, 2005 -- The Indo-Asian
News Service has reported that "A day after President A.P.J. Abdul
Kalam asked Kerala politicians to inculcate a new work culture, the state's
chief postmaster Saturday lashed out at the unions playing spoil sport in the
postal department. Addressing reporters here, Chief Post Master General K.N.K.
Karthiyani, who is laying down office, said she is leaving with a heavy heart,
as she was unable to do anything constructive during her three years in office.
"There is opposition to every move we tried to make in the department from
the unions. The entire time was spent addressing their demands. Never in my
thirty-five years of service was I so disheartened."
July
30, 2005 -- The latest issue of
the PostCom Bulletin is available online. Among the news in
this issue:
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July
30, 2005 -- The U.S.
General Accountability Office (GAO) has released a follow-up to the 1999
USPS Data Quality Study entitled U.S. Postal Service: Improving Ratemaking
Data Quality through Postal Service Actions and Postal Reform Legislation
(GAO-05-820) and dated July 28, 2005. [The pdf file is over 10 MB.]
July
30, 2005 -- Business
Times has reported that "MINISTER of Energy, Water and Communications
Datuk Seri Dr Lim Keng Yaik has proposed that postal service operators within
the Association of South-East Asian Nations (Asean) region to band together and
co-own an express delivery hub to better compete with bigger players from other
regions. Postal operators within Asean could leverage on economies of scale
through integration of postal facilities in the region."
July
30, 2005 -- The
Peninsula has noted that "All Nippon Airways (ANA) said yesterday it
will order three Boeing 767 aircraft in a near $360m deal, with one plane
designated for freight as it pursues a cargo business. ANA regards the cargo and
postal business as its third pillar, in addition to the international airline
business and the domestic airline business."
July
30, 2005 -- Japan
Today has reported that "Prime Minister Junichiro Koizumi looked
prepared Friday for a make-or-break vote as early as next week on his
contentious bills to privatize Japan Post, although his party deputies said he
seems uncertain."
July
30, 2005 -- AMEInfo has
reported that "Empost, the UAE's national courier company, has launched
'Litedox', an innovative courier service for the delivery of light documents to
India as well as within the UAE. The door-to-door courier service is designed to
cater primarily to the need for sending original documents, certificates,
statements and letters to India, whose expatriate community is the largest in
the UAE. The service will be expanded to other international and regional
countries at a later stage."
July
30, 2005 -- As the Chicago
Tribune has noted, "Zazzle.com, based in Palo Alto, Calif., sells
T-shirts, posters, cards and stamps that can be customized with digital artwork.
Founders Robert Beaver, and his sons, Bobby and Jeff, developed printing and
automated manufacturing technologies allowing them to sell customized products
at relatively low costs. T-shirts and sweatshirts, for instance, sell in the
range of about $15 to $35. A sheet of 20 2.5-by-1.5-inch first-class stamps
costs $16.99, plus shipping. The firm has a database of hundreds of thousands of
digital images from artists. Contributors earn royalties when their creations
are purchased. Customers can also upload their own photos--of weddings, babies,
relatives--to create customized U.S. postage stamps. Zazzle, which does not
provide its revenue numbers, also has a partnership with Pitney Bowes, a
provider of integrated mail and document systems."
July
30, 2005 -- The Washington
Post has reported that "Rep. Gary Ackerman, a Democrat who represents
the New York City borough of Queens, was upset over a proposed rule from the
Federal Emergency Management Agency for distributing some $10.5 million raised
by a special Sept. 11 stamp. The money is to go to the families of emergency
workers killed or permanently disabled in the 2001 terror attacks. The 9/11
Heroes Stamp Act, passed in 2001, established a "semipostal" stamp,
and the Postal Service sold about 133 million between 2002 and 2004. The stamp
sold for 45 cents, eight cents above the normal cost of a first class stamp,
with the extra money going to the fund."
July 29, 2005 -- BrazzilMag
has reported that "The hearings are live on TV. They begin at 10 am and
sometimes they last as much as twelve hours. Everybody has seen at least a few
minutes of Brazil's new combined reality show and soap opera. Welcome to the
Parliamentary Investigation Commission (CPI) hearings on corruption in the Post
Office; aka "The Post Office CPI." It is the popular name for the
hearings ("The Post Office CPI") that has upset the director of the
Federation of Postal Workers (Federação Nacional dos Trabalhadores da Empresa
de Correios e Telégrafos) (Fentect), Roberto Prado. He is threatening to sue TV
networks that have associated images of mailmen with the corruption. According
to Prado, pictures are shown of mailmen carrying sacks of money. "This is
terrible for the mailman's image. It looks like the mailman is making millions
through corruption. In reality the mailman is a person who brings people
happiness," said Prado. The president of the Post Office, Jânio Pohren,
seconds Prado's complaints saying that the company's 108,000 employees have been
uncomfortable with the use of the corporate name in such a general sense. Pohren
reports that he has sent a message to Congress requesting a name change."
July 29, 2005 -- In an
editorial, the Yomiuri
Shimbun wrote: "The House of Councillors has reached the final stages
of discussions on the postal privatization bills. The ruling coalition of the
Liberal Democratic Party and New Komeito hopes to put the bills to a vote on
Aug. 5. No one can tell whether the legislation will be written into law by
clearing debate at the upper house. No matter what it takes, lawmakers must
avert the political confusion that could arise from a tug-of-war over the fate
of the bills designed to privatize Japan Post. We believe the postal reform
legislation should be passed by the Diet. The bills' failure to clear
parliamentary debate would not only mean that efforts to reform the postal
system will have been thwarted, but it also could adversely affect efforts to
lay the foundation for stable economic growth."
July 29, 2005 -- KSL-TV
has reported that "Help is on the way for Taylorsville residents who have
plagued with problems with their mail. The help is coming from House Government
Reform and Oversight Committee chairman Tom Davis from Virgina. He made the
promise to Utah Congressman Chris Cannon during floor debate this week on a bill
designed to help modernize the U-S Postal Service. Cannon told the House that
the mail is plagued with unwarranted delays and sporadic delivery. He said it's
partly because Taylorsville has four different ZIP codes and because all post
offices that serve the area are located outside the city."
July 29, 2005 -- Transport
Intelligence has reported that "DHL International has invested almost
€1.3 million in developing its logistic network in Romania."
July 29, 2005 -- Traffic
World has reported that "The United States, Canada and Mexico on Sept.
16 will start enforcing an international standard that requires heat treatment
or fumigation of wood pallets, crates and other packing material to prevent the
spread of a host of wood pests and diseases."
July
29, 2005 -- The latest copy of the National Association of Postmasters of the U.S. electronic governmental affairs newsletter is available on the NAPUS web site.
July 29, 2005 -- The Wall
Street Journal has reported that "The Commerce Department said Friday
that its advance reading on gross domestic product showed the economy expanded
at a 3.4% annual rate in April through June. Consumer spending, which accounts
for about two-thirds of economic activity, rose 3.3%, slightly lower than the
3.5% gain in the first quarter. Business spending increased 9.0%, after rising
5.7% in the first quarter. Inflation gauges in the report were mixed. The price
index for personal consumption rose at a 3.3% rate after climbing 2.3% in the
first quarter, while the price index for gross domestic purchases, which
measures prices paid by U.S. residents, rose at a 3.2% rate. The chain-weighted
GDP price index increased at a 2.4% rate after rising at a 3.1% pace. The
employment-cost index rose 0.7% in the second quarter of 2005, the same rate as
in the first quarter, the Labor Department said. Wages and salaries also grew
moderately -- at the same 0.6% rate recorded in the first quarter. But benefit
costs, which have been nudging up overall compensation costs for years, rose
just 0.8% -- the slowest rate in more than three years." If postal
reform is enacted, following the rates of growth and inflation will be an
important part of postal life.
July 29, 2005 -- As Forbes
has noted, "According to a study by the Pew Internet and American Life
project, barely 5% of American teens aged 12 to 17 prefer e-mail over instant
messaging as their digital communications method of choice. Teens view e-mail as
a way to talk to "old people" or institutions like companies. Kids, it
seems, prefer the immediacy and mobility of instant messaging and text messaging
to e-mail, which they might some day refer to as snail mail, the same way most
people over 30 refer to the U.S. Postal Service. Why care? Because American
teens, an astonishing 87% of whom are online, are what's helping drive the
consumer electronics industry, including development of new products. Pew says
that 89% of Internet users use e-mail daily, about the same percentage as 2000,
but that the "popularity of e-mail and intensity of its use is waning"
in favor of IM."
July 29, 2005
-- On Monday, August 1, the USPS Pricing and Classification Service Center
(PCSC) will be moving into its new office. The new address is: Pricing and
Classification Service Center 90 Church Street, Suite 3100 New York, NY
10007-2951; Phone number: (212) 330-5300; Fax number is: (212) 330-5320. Its
hours of operation are 8:30 AM - 8:00 PM Eastern Time.
July 29, 2005
-- The Fuel Surcharge Coalition has reported that the fuel surcharge language
has been expunged from the Highway Transportation Bill. Congratulations and many
thanks to Randal Mullett, Vice President of Government Relations for CNF Inc.
who spearheaded the coalition.
July 29, 2005
-- The Tampa
Tribune has reported that "Ed Silverberg marched out of his jewelry
empire's executive office this month, ready to battle the U.S. Postal Service.
Justice must be served, Silverberg thought. The post office owed him. A $2,670
white gold and diamond bracelet that his company mailed - and insured - was lost
en route to its new owner overseas. But the post office rejected his insurance
claim. Silverberg stood in line for about an hour waiting for a court clerk to
accept his lawsuit paperwork. When he reached the counter, the case was closed.
"Sovereign immunity,' the clerk told me. I can't sue the post office
because they have sovereign immunity,'' Silverberg said. Under federal law,
federal entities are protected from lawsuits unless sovereign immunity is
waived."
July 29, 2005
-- As Dow
Jones put it, "Just when Koizumi had enough problems with his post bill
reform efforts, non-binding prosecutor review panel says his ally, and senior
member of Lower House post reform panel, Taku Yamasaki improperly reported Y30
million contribution from dentists' lobby, ought to be indicted."
July 29, 2005
-- According to The
Register, "Merseyside Police are appealing for information following
the theft of thousands of pounds of mobile phone and consumer durables in a
burglary at DHL's depot in Aintree, Liverpool, last weekend. Thieves made off
with five lorries loaded with a substantial amount of property including sports
clothing, mobile phones and electrical goods. One of the stolen lorries was
recovered in Bootle. The four outstanding lorries are bright yellow and marked
with the DHL logo, so they shouldn't be too hard to spot."
July 29, 2005
-- China
Knowledge has reported that "The China State Post Bureau has announced
its plans to cut down the delivery time of newspapers and magazines to no longer
than 10 hours. This new service ensures that readers get their newspapers and
magazines at least six to 24 hours earlier than before."
July 29, 2005
-- The Appeal-Democrat
has reported that "U.S. postal officials are considering whether to shift
mail processing for the Yuba-Sutter area to West Sacramento as a cost-cutting
measure. The proposed changes would send all outgoing mail to Sacramento for
sorting, then truck local mail back to the Marysville Processing and
Distribution Facility on Arboga Road in Olivehurst, which sorts the mail for ZIP
codes beginning in "959." Under the plan the Olivehurst facility's
sorting equipment would be moved to West Sacramento and replaced with added
distribution equipment for the 10-county service area."
July
29, 2005 -- Market
Watch has reported that "Dutch postal and logistics company TNT N.V.
has posted a flat second quarter net profit, but said it would take a pretax
charge of EUR140 million in the full year due to restructuring of its
loss-making French operations. Dutch postal and logistics company TNT NV doesn't
have any plans to buy back shares."
July 29, 2005
-- Japan
Times has reported that "The decisive moment for the administration of
Prime Minister Junichiro Koizumi is approaching, and it is one that the Liberal
Democratic Party's elders fear may shatter its decades-long grip on power. The
LDP's in-house battle over Koizumi's pet project has developed into more than
just a battle to reform the state-run postal services. It is a struggle to
cripple -- if not oust -- Koizumi's Cabinet, which has defied immense pressure
from LDP lawmakers since his inauguration in April 2001 to pursue budgetary
austerity and reform of inefficient government-linked corporations." See
also Reuters.
July 29, 2005
-- Kantipur
Online has reported that "The Government [of Nepal] is all set to
introduce Private Sector Postal Service Operating Regulation 2005 to monitor all
private postal and courier service providers in the country. The regulation is
being enforced as per the policy of Department of Postal Services (DPS) that
envisages to monitoring and enhancing the services of the private operators.
Private postal and courier service providers currently operate with licenses
issued by Company Registrar under Ministry of Industry, Commerce and Supplies
(MoICS). Although the certificate gives legality to the business, it fails to
spell the terms and conditions for their operations."
July 29, 2005 -- Business Mailers Review has reported that:
Business Mailer's Review is an award-winning, independent biweekly newsletter covering issues of importance to the business mailer. It is regularly cited as among the best sources of postal information. For subscription information, check the BMR web site.
July 29, 2005
-- First
Coast News has reported that "The price of stamps may not be going up
thanks to a bill passed by the U.S. House of Representatives. The U.S. Postal
Service proposed a two-cent increase in stamp prices in April. They say its due
to a law that requires $3.1 billion be put in an escrow account annually for
retirement benefits. Tuesday night the U.S. House overwhelmingly passed a bill
that would ease that requirement and allow the postal service to set more
competitive rates to compete with FedEx and UPS." Is this one to be
filed under "in your wildest dreams?"
July 29, 2005
-- According to the Lexington Institute's Sam Ryan in the latest National
Review, "The postal-reform legislation that passed overwhelmingly in
the House on Tuesday has been hailed as a much-needed repair to the ailing
United States Postal Service. Unfortunately it doesn't fix the postal service's
biggest problem. In the face of falling mail volumes and massive liabilities,
the USPS has claimed for years that greater pricing flexibility would solve its
financial woes. Free of existing regulation, its managers argued, the USPS could
respond quickly to market opportunities and thereby increase earnings. It looks
like the USPS is finally getting what it wanted: At the core of the new bill are
measures that free up the pricing system. To really mend itself, however, the
postal service needs not so much flexibility on pricing as the flexibility to
cut its massive labor costs. And the new legislation doesn't give it that."
July 29, 2005
-- The Bangor
Daily News has reported that "As part of a labor settlement, DHL
contractor Rydbom Express has agreed to pay a total of $76,000 in back wages to
12 unionized drivers, who accused the company of violating federal labor laws,
according to a union official. The drivers joined the International Brotherhood
of Teamsters in January when they worked for Black Bear Courier of Orono, an
independent contractor that delivered packages for DHL in eastern Maine for more
than a decade. DHL hired Rydbom Express in March after Black Bear Courier failed
to renew its contract with the global shipping giant. The 12 Teamsters drivers
initially were not rehired by Rydbom but in June were allowed to return to their
old DHL delivery routes after federal officials found credence to Teamsters'
complaints that Rydbom had violated the National Labor Relations Act when it
interviewed prospective employees."
July 29,
2005 -- According to the Journal
of Commerce, "German mail and logistics company Deutsche Post said on
Thursday second-quarter operating profit rose 21 percent, boosted by its DHL
express and logistics units, and reiterated its annual goals."
July 29,
2005 -- From the Business
Wire: "O.P.S.I, an authorized service contractor of UPS in Israel today
announced that it has chosen CoSign, Algorithmic Research's (ARX)
electronic-signature solution to enable the migration from paper-based invoices
to electronic invoicing. With CoSign, UPS can now prepare, digitally sign and
send electronically thousands of electronic invoices, to their customers,
eliminating the high costs associated with paper printing, handling, posting and
archiving."
July 29, 2005
-- AFX
has reported that "Greek betting technology company Intralot said its
Intralot Egypt unit has agreed to invest 10 mln eur in setting up a new company
with the Egyptian Post Office, that will be produce the office's new IT
infrastructure."
July 29,
2005 -- Electronics
Supply & Manufacturing has reported that "the World Customs
Organization in Brussels, Belgium, with 166 member nations representing 99
percent of world trade, in June adopted the "Framework of Standards to
Secure and Facilitate Global Trade." The framework sets the worldwide rules
for moving goods across borders. The Global Express Association (Brussels) fully
supports the framework, said GEA director general John Simpson. The association
represents such courier companies as DHL International GmbH, Fedex Corp., TNT NV
and United Parcel Service Inc."
July 28, 2005
-- Reuters
has reported that "E-mail is for grown-ups and U.S. teenagers now prefer
instant messaging to communicate with each other online, according to a survey
released on Wednesday. Internet users from 12 to 17 years old say
e-mail is best for talking to parents or institutions, but they are more likely
to fire up IM when talking with each other, the nonprofit Pew Internet and
American Life Project found. E-mail is still used by 90 percent of online teens.
But the survey found greater enthusiasm for instant messaging."
July 28, 2005
-- The Associated
Press has reported that "SurferQuest, a Philipsburg, Pa.-based supplier
of about 1,000 computer kiosks throughout the United States, is donating screen
space to disseminate photos and information provided by the National Center for
Missing & Exploited Children. The kiosks provide public access to the
Internet for a fee at places such as hotels and cafes. When a kiosk is
unoccupied, pictures of missing children appear on the screen in space normally
reserved for advertising. Passersby can request more information about a missing
child or report a sighting without charge." Well...it worked with the
mail. Should work here.
July 28, 2005
-- From the U.S. Postal Service: "Postal
Explorer is your complete online resource for business mail, and now it’s
even easier to use. We redesigned the site with new menus and an enhanced search
engine, and added a second video tutorial to walk you through its many features
and interactive tools. Under "Additional Links" in the bottom-right
corner of the homepage, click “Tutorials,” then “Overview—Postal
Explorer.” Postal Explorer houses all of our business mailing publications,
with powerful search capabilities to help you quickly find the information you
need. It includes the rate calculators, postage statements and other business
mailing forms, and the Quick Service Guides. The tutorial explains what is
available and demonstrates the new DMM menu and navigation system. You’ll see
the many new features of Postal Explorer, including DMM Advisory and the DMM
archive. Postal Explorer can answer all kinds of mailing questions. Take a look
at the new design, and let the tutorial take you on an audio and video
tour."
July 28, 2005
-- Bloomberg
has reported that "China will reorganize the State Post Bureau to create
the nation's fifth-biggest lender by deposits holding a tenth of all household
savings in the world's seventh- biggest economy, the China Banking Regulatory
Commission said. The new China Post Savings Bank will hold 1.23 trillion yuan
($152 billion) of deposits and continue to offer financial services through
36,000 outlets after the breakup of the nation's post bureau, the regulator said
in a statement today. ``The existing post savings"
July 28, 2005
-- Il Sole 24
Ore has reported that "The board of directors of the Italian post
office, Poste Italiane, has been presented with the organisation's development
plan for 2006-2008. More generally, Poste Italiane is aiming to develop its
financial services to the point where its BancoPosta subsidiary becomes Italy's
biggest 'bank' by customer numbers and to increase its share of Italy's express
parcel service market."
July 28, 2005
-- CNN
Money has reported that "The U.S. union movement split apart this week
over how to best organize workers at non-union companies. Two of the largest
unions left the AFL-CIO this week, and others are threatening to follow. But
even without the defections, the battle for new recruits is an uphill one. From
talking to professors, union officials and other experts, here are the companies
that are on the top of organized labor's wish list." Near the top of the
list: Fedex.
July 28, 2005
-- According to DM
News postal commentator Cary Baer, "Most of us thought it would be “all
quiet on the postal front” this summer. Though a lot is going on, specifically
the rate case and reform legislation, both these items were expected to be
resolved, one way or another, before the summer doldrums began. However, neither
is going away quietly."
July 28, 2005
-- The
Telegraph has reported that "Royal Mail lost more than £200m last year
on post that weighed under 100g, the company's regulatory accounts showed
yesterday. This is the category of mail that is regulated by the
government-appointed regulator, Postcomm, and represents the organisation's
monopoly area, which is about to be removed completely. Chairman Allan Leighton
said that the figures illustrated Royal Mail's problem. "Ninety percent of
what we do loses money" he said. Mr Leighton is fighting a Postcomm price
control proposal that would cap first and second class stamps at a level he says
is unsustainable. He said yesterday that the prices need rebalancing, because
customers sending heavy parcels are subsidising lighter mail."
July 28,
2005 -- Bernama
has reported that "Pos Malaysia Bhd is looking at business alliances and
collaboration with postal organisations of Asean nations to strengthen its
competitiveness and enhance its postal delivery service. Chairman, Datuk Ikmal
Hijaz Hashim said projects planned with the Asean postal organisations included
joint marketing strategies on express mail services, promotion of parcel
services and joint stamp and philatelic products among the Asean countries.
"Pos Malaysia is also upgrading its international remittances services to
speed up payment transaction," he said at a press conference after the
launch of the 12th Asean Postal Business Meeting. Ikmal said Pos Malaysia
non-postal services such as payment of utilities and remittance services were
growing as a significant contributor to group's turnover."
July 28,
2005 -- The Edmunton
Sun has reported that "While Canada Post is not usually counted as an
arts organization, it can be instrumental in shaping culture much like the CBC,
the National Gallery or the Canada Council. Canada Post has announced an
increase in postal rates for magazines mailed in Canada, effective in January.
For heavier magazines like Flare or Cottage Life, the hike will amount to
between 5% and 8%. Magazine publishers are alarmed. According to Mark Jamison,
chief executive officer of the trade association Magazines Canada, the
cumulative increases in magazine postal rates in the past six years amount to a
70% rise in costs."
July 28, 2005
-- The Hindu
has reported that "The Department of Posts today opened four Finance Marts
in Delhi and is in the process to open 150 such outlets in the country by
2005-end for selling investment schemes of banks, insurance companies and mutual
funds."
July 28, 2005
-- The Baltimore
Sun has reported that "Mayor Martin O'Malley made good yesterday on a
year-old pledge to hire an inspector general to investigate allegations of
fraud, corruption and mismanagement in city government. O'Malley introduced
Andrew S. Clemmons, a former top U.S. postal inspector, as Baltimore's first
inspector general at a City Hall news conference."
July 28, 2005
-- From the PR
Newswire: "RR Donnelley & Sons Company applauds the House
leadership for its passage last night of postal reform legislation, HR22. The
bill passed with an overwhelming majority 410-20. "That vote was an
important step toward ensuring that we have a healthy, viable and affordable
postal service that is designed to last well into the 21st Century," said
RR Donnelley CEO Mark Angelson. Mr. Angelson continued, "We are pleased to
see language in the bill that encourages worksharing as well as language that
would tie future rate increases to the rate of inflation. Affordable, stable and
predictable rates are essential to the USPS's and our customers' success.
Comprehensive reform as outlined in HR22 should enable the USPS to cover the
costs of universal service and achieve financial stability without unacceptable
rate increases." See also the press releases from the office of Rep.
Tom Davis, Rep.
Candace Miller, the National
League of Postmasters, American
Business Media, and the American
Forest and Paper Association.
July 28, 2005
-- DM
News has reported that "Paper and packaging manufacturer MeadWestvaco
said yesterday that it would slash another $200 million in costs in an ongoing
effort to make the company more responsive. The cuts, aimed at reducing
administrative costs and streamlining warehouse operations, are part of a new
business model to let MeadWestvaco react faster to market changes."
July 28,
2005 -- Transport Intelligence has reported that:
Deutsche Post World Net has become the latest company to report its interim financial results. Overall it managed to increase its profits from operating activities (EBIT) by 10.6% to about €1.7 billion. At €21.5 billion, revenue rose slightly compared with the first six months of 2004. The increase in operating profit was largely due to technical changes in accounting standards. On a like for like basis operating profit dropped by 1.8% as a result of falling profits in the Mail division. See also Bloomberg.
DHL has announced that it has established a Quality Control Centre (QCC) in Beijing which will act as the company's control hub in China.
The Beijing Organizing Committee for the 2008 Olympic Games (BOCOG) announced on Wednesday that UPS has been selected as the official logistics and express delivery sponsor of the 2008 Games. UPS will provide logistics consultation to the committee and assist in the development and execution of the logistics operating plan for the 2008 Olympics. UPS will also provide express delivery services to all nominated venues during the Games. The sponsorship deal also includes the Paralympics, the Chinese Olympic Committee, as well as the Chinese teams to the Turin 2006 Winter Olympics and 2008 Olympics.
July 28, 2005
-- Here are two new papers you really should check out on the PostInsight
web site:
BILL
PRESENTMENT & PAYMENT: ELECTRONIC VS. MAIL Much has been written in
recent years about the rapidly rising adoption of Electronic Bill
Presentment and Payment (EBPP) and many predictions have
been
made about the future growth of this channel. Few of the EBPP penetration
estimates, however, actually quantify the number of bills received and paid
exclusively online by consumers. This paper analyzes EBPP’s impact on U.S.
mail volumes by examining current and historical EBPP penetration. The paper
also examines how consumers prefer to receive and pay bills, and how these
preferences might impact future EBPP growth and mail volumes.
TRENDS IN CONSUMER PAYMENTS SYSTEMS The payments systems in the U.S. and Europe have been evolving for decades. In particular, the banking and retail industries have been eager to incorporate new systems almost as quickly as they were developed and this has greatly facilitated consumer payments. This explosion of “payment media” has given customers much more choice and provided operational efficiencies to banks and retailers. Press reports and even some studies have fueled a now generally accepted belief that the Internet alone is the major cause for the recent changes in the mix of payment methods. This paper reviews recent developments in the payments system more comprehensively and uses this information to assess the impact of these trends on mail volumes as part of our broad electronic substitution studies. The content scans and assembles the best of the recent studies available and analyzes their data in a variety of ways to discern objectively what is happening.
Why deal with hearsay when you can learn something from the facts?
July 28, 2005
-- The Journal
of Commerce has reported that "FedEx Corp. has entered into a $1
billion five-year credit agreement with a syndicate of banks that includes Bank
of America Corp."
July 27, 2005
-- PostCom would like to welcome four of its newest members:
APX (American Packaging Express) Logistics (represented by Michele Donahue, Marketing Communication Manager)
Chico's (represented by Philip Morris, Director of Media & Production)
DDP Mailing & Electronic Printing (represented by Larry Garrett, Owner)
Mystic Logistics (represented by Richard E. Domagala Director of Customer Service & Sales Administration)
July 27, 2005
-- The DM
Bulletin has reported that "Royal Mail has released profit and loss
figures to support its case for introducing size-based pricing, which it argues
is necessary for it to compete on a 'level playing field' after the introduction
of full competition to the postal market. The state-owned firm says the figures,
submitted to Postcomm, show it has been unable to make much progress in
rebalancing postage prices to reflect its real costs."
July 27, 2005 -- CEP News (Courier-Express-Postal), published by the MRU Consultancy, has reported that:
The draft for a new postal act for Austria, which was presented last week, has encountered widespread criticism. According to the draft, complete postal market liberalisation "will not happen before 1.1.2009 but in harmony with the EU". The controversial draft contains a veto right for the government on the issue of further post office closures.
Established in May, Germany's Brief-Union eG based in Gutersloh represents yet another co-operative providing its members with mail dispatch discounts. The customer co-operative is backed by the Bertelsmann group, arguably one of Germany's largest dispatchers with around 1.5 billion items every year.
The Chinese National Council took the - expected - decision to restructure the country's postal system. In future, a regulatory body will operate separately from the post; the State Post Administration will supervise the activities of China Postal Group, which will operate in four business areas: logistics, express and Freight Post Airline will be joined by a post bank, still to be set up.
China's post is not the only one to discover the attraction of banking and money transactions. This week, the French La Poste is apparently submitting an application to the regulatory authority CECEI for the opening of a post bank.
Posten Norge A/S says its system is suffering increasing abuse from drugs smugglers. Norway's daily, Aftenposten, reported that 65% more consignments had been confiscated this year than the year before. According to the customs authorities, the problem is caused by a growing internet trade which allows the ordering of medicines and drugs which are illegal in Norway.
Private postal service providers in Switzerland demand that access to the mail market also include access to the post's infrastructure. In principle, the post intended to treat private operators as large customers and grant them discounts according to the preparatory services they provided.
The future ownership of Britain's Royal Mail remains uncertain. Royal Mail has made an urgent request to the government for a loan of around 2.9bn euros in order to stay competitive in the short term despite a pension fund deficit of almost 6.5bn euros and a pending price freeze imposed by the regulatory authority.
The DPD parcel service, which belongs to the French La Poste, is heading for strong international expansion. In an interview with the Financial Times Deutschland, GeoPost Holding chairman Claude Begle again confirmed his company's ambitious global growth targets.
The MRU, founded in 1992, is the only consultancy in the German speaking area, 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.
July 27, 2005 -- From the PR Newswire:
The Mailing Industry CEO Council commended the House of Representatives today for passage of the "Postal Accountability and Enhancement Act" (H.R. 22). "The CEO Council applauds the continued leadership of the House Government Reform Committee in pushing to move this much needed legislation forward," said Michael J. Critelli, Chairman and CEO of Pitney Bowes Inc., and President of the Mailing Industry CEO Council. "Postal reform is necessary to allow the USPS to grow the mail and to act as an engine for economic growth for the U.S. economy," continued Critelli. "Today's House passage is a major step forward for postal reform."
Pitney Bowes Inc. has applauded the action by the U.S. House of Representatives in approving postal reform legislation by an overwhelming majority.
July 27, 2005
-- The decade-long odyssey known as postal reform has
cleared its most significant hurdle to date. The House
of Representatives late on Tuesday passed H.R. 22, the Postal Accountability and
Enhancement Act, by a vote of 410-20. All proposed amendments were
defeated. For the first time in more than 35 years, the House has passed a bill
to overhaul the U.S. Postal Service. The House Government Reform Committee
unanimously reported H.R. 22 to the full House back in April. The Senate is not
going to vote on its companion piece of legislation, S. 662, this week. It will
have to wait until Congress returns to work after Labor Day. See also the
press release from the office of Rep.
John McHugh and the report by the Associated
Press.
July 27, 2005
-- In his comments in support of H.R. 22, governmental reform committee chairman
Tom Davis (R-VA) acknowledged that there still are differences between the House
and the White House regarding certain aspects of postal reform. He said he
wanted to assure the White House that there would be continuing efforts to iron
out these differences as the bill proceeds through the legislative process. He
also noted the great concern over the classification of single-piece parcels
within the competitive services category. He said this would be worked on also.
July 27, 2005
-- The Executive Office of the President has published its Statement
of Administration Position on H.R. 22. In part, it said:
"The Administration strongly supports efforts to enact comprehensive postal reform legislation, and appreciates the progress toward that goal made in drafting H.R. 22. The Administration appreciates the opportunity to work with Congress toward a solution that will enable the United States Postal Service (USPS) to respond not only to today's known needs, but also to unforeseen future issues, in a responsible manner that is fair to taxpayers, ratepayers, and USPS employees. The Administration strongly believes that the final legislation must adopt the Senate's postal reform proposals in S. 662 regarding the following issues:
Pricing flexibility within a firm annual Consumer Price Index (CPI) rate cap with a strict exigency requirement.
Reform of the workers' compensation system.
Full compliance with all SEC reporting standards including segment reporting.
Limitations on borrowing from the Competitive Products Fund.
Greater flexibility to use worksharing.
Greater flexibility to enter into negotiated service arrangements.
Direction to the arbitrator in labor negotiations to consider the financial health of USPS.
Self-Financing Principle
"The Administration believes that comprehensive postal reform must require USPS to cover all of its financial obligations, including its on- and off-balance sheet unfunded liabilities. the Administration has serious concerns with two elements of the legislation that do not adhere to the self-financing principle:
Unfunded Liabilities and the Escrow Requirement. The Administration supports the elimination of the statutory escrow requirement and further supports allowing USPS to benefit fully from all of the pension savings resulting from the enactment of Public Law 108-18, the Postal Civil Service Retirement System Funding Reform Act of 2003, by placing USPS on a financing plan to ensure that it can cover its post-retirement health benefits costs.
The Administration believes that USPS must continue to be responsible for pension costs connected with military service credits for postal employees under the Civil Service Retirement System (CSRS) and opposes provisions in the current version of H.R 22 that would grant USPS a subsidy with a net present value of $27 billion by transferring all of these military service pension credit obligations to the General Fund of the Treasury. USPS's responsibility for paying this military service pension credit obligation is a cost of doing business, and USPS should not be absolved of its responsibility to pay for these unfunded liabilities."
"The Administration looks forward to the passage of postal reform legislation that the President can sign reflecting his five reform principles and to working with Congress to address these issues. However, the bill ultimately presented to the President must not contain provisions that would have an adverse impact on the Federal budget, either by releasing funds from escrow without devoting them to pre-fund liabilities or by transferring the military service obligation from USPS to taxpayers. Should the final bill have such an adverse impact on the Federal budget, the President's senior advisers would recommend that he veto the bill.
July 27, 2005
-- In letters to the House of Representatives, Tom Day, the Postal Service's
senior vice president for government relations wrote:
The U.S. Postal Service opposes the requirement that postal reform legislation be entirely budget neutral. If adopted, this amendment will deprive the mailing public of any benefit from the long-running over-funding of the Civil Service Retirement System (CSRS). If the Hensarling amendment is adopted, the Postal Service will be in a worse financial situation than that it occupied before the CSRS over-funding was identified and corrected by P.L. 108-18.
I am writing in opposition to the Flake Amendment to H.R. 22....The amendment creates up to 20 pilot programs to explore alternative means of providing postal services and delivery methods. While the Postal Service is not opposed to innovative ideas, the mechanism created by the Flake amendment seems unnecessarily complicated and burdensome to implement.
[A version of H.R. 22 with some highlights has been posted on this site.]
July 27, 2005
-- The Office of the
Consumer Advocate has submitted to the Postal Rate Commission a copy of the
letter signed by Postmaster General Potter setting forth the details of the
agreement reached between the Postal Service and OCA. In exchange for OCA not
filing a direct case, General Potter agrees to (1) establish a working group to
investigate the possibility of a non-denominated, “forever” stamp, and (2)
post on the Postal Service’s website performance data for Express Mail,
Priority Mail, First-Class Mail, and Package Services.
July 27, 2005
-- According to Logistics
Management, "The American Trucking Association estimates the country is
now short 20,000 long-haul drivers. The industry group predicts that number will
grow to 111,000 by 2014 under current conditions and that about 20 percent of
hazmat drivers won't renew their endorsements in the next five years as they
expire."
July 27, 2005
-- From the Business
Wire: "ASTAR Air Cargo recently received operation specification
approval from the FAA for North Pacific operations. ASTAR received rights to fly
to the area this year, and flew their first trip flawlessly. ASTAR Air Cargo is
a licensed U.S. air carrier operating a fleet of 44 aircraft from its hub at the
Cincinnati/Northern Kentucky International Airport. The airline provides
all-cargo scheduled and charter services on a contract basis for the DHL
Worldwide Express network and charter services on a contract basis for other
customers including the U.S. Military and the United States Postal
Service."
July 27, 2005
-- According to the Journal
of Commerce, "Mergers and acquisitions, driven by complex global supply
chains and a host of other factors, are at the top of the agenda for major
European logistics companies, said Cecilia Cabodi, program manager for
logistics, supply-chain management and transport at the London office of
consultants Frost & Sullivan. "Speaking to 3PLs in Europe, mergers are
very much a part of their vision for the future," she said."
July 27, 2005
-- El Pais
has reported that "Correos y Telegrafos, the Spanish state post office, is
to begin considering job applications from non-EU residents who have immigrated
to Spain. The applications will be considered as long as the applicants have
both residence and work permits."
July 27, 2005 -- Transport
Intelligence has reported that "DHL International has invested almost
€1.3 million in developing its logistic network in Romania."
July 27, 2005 -- Reuters
has reported that "Postal group Singapore Post on Wednesday reported a 13.4
percent rise in first quarter net profit."
July 26, 2005 --
The Harare Herald
has reported that "The Southern African Development Community (SADC) postal
sector is set to benefit from the cost accounting model developed by Universal
Postal Union (UPU). Acting Secretary for Transport and Communication Mr Nelson
Kudenga said the model for developing countries would assist in pricing postal
products and services. Mr Kudenga said UPU would assist developing countries to
build capacity in various areas, improve quality of service offered throughout
the international postal network, provide universal postal services,
technological developments and proper pricing systems within the postal
sector."
July 26, 2005 --
According to the Journal
of Commerce, "UPS said it has launched five weekly flights in Qingdao
in eastern China's Shangdong province."
July 26, 2005 -- The National
Retail Federation has urged the House to approve postal reform legislation
that would allow businesses and consumers to avoid a major rate hike.
July 26, 2005 -- Traffic
World has reported that "The U.S. Postal Service is taking the
guesswork out of shipping by mail. Looking to close a long-standing gap with its
private competiion, the USPS this month will start rolling out technology that
will let customers track packages and other mail in transit. "In theory …
we'll be able to track every letter people assign a barcode to, definitely every
package," USPS Vice President for Network Operations Management Paul Vogel
said. He calls monitoring what happens to mail during transportation "the
missing component" in the postal service. The USPS tracking plan aims to
improve customer service and obtain data that will be used internally to improve
network management and package flow."
July 26, 2005 -- The Financial
Times has reported that:
This month, the Berlin government sold its remaining stake in Deutsche Post to the KfW state bank, where 45 per cent of the shares now reside. It took Deutsche Post a long time to transform itself into the company that last year generated revenues of €43bn and an operating profit of €3.35bn. Its German workforce was trimmed by 140,000 over a decade as the business tried to become more efficient in its home market. Mr Zumwinkel is proud of avoiding compulsory redundancies but he notes that “even in good times we have to work on our productivity”. Part of this success is due to treating unions as “partners, not enemies."
Given the sweeping changes he has implemented during the five years he has managed the mail division of TNT, the Dutch post and logistics group, Harry Koorstra appears anything but indecisive. Speed has been essential in tackling issues that confront mail groups across Europe – how to maintain margins and quality in the face of competition and the decline in postal volumes, largely due to e-mail.
July 26, 2005 -- The Socialist
Worker has claimed that "THE GOVERNMENT has given the clearest
indication yet that it is going to privatise the post. It won’t admit it is
privatisation, but all the indications are that ministers are ready to end the
Royal Mail’s present structure."
July 26, 2005 --
According to Rep. John McHugh, the "godfather" of postal reform,
noted in a press release that "The legislation also substantially
reduces the need for the across-the-board increase in postal rates, which the
Postal Service had anticipated taking effect in January 2006. From his
mouth to the Board of Governors' ear....
July 26, 2005 -- The Telematics
Journal has noted that "Group 1 Software, Inc., a Pitney Bowes company,
introduced the geocoding industry's first point-level solution, GeoStan
Point-Level Option, which incorporates point data that locates addresses at the
center of the actual building footprint or parcel. GeoStan is an application
program interface that corrects, standardizes and geocodes address information.
GeoStan provides a comprehensive set of address-level geocodes by combining USPS
postal data with spatial data files from leading data providers, including Tele
Atlas, into a single unified data set. Enhanced by Tele Atlas data, the GeoStan
Point-Level Option can locate millions of addresses at the building or parcel
center point.
July 26, 2005 --
According to the Watertown
Daily Times, "Rep. John M. McHugh's 11-year odyssey to revamp the
nation's mail delivery system reaches the House floor for the first time today,
and people following the situation say the bill has a good chance of passage
despite some fine points of contention."
July 26, 2005 -- Last
night the Rules Committee approved the following rule on HR 22, the postal
reform bill. The House of Representatives could consider the bill at any time
after 10 a.m., but is more likely to consider it late in the afternoon or early
in the evening. The rule makes in order the following amendments: (Rep. Flake)
which establishes a domestic pilot program to empower local postmasters to
employ their experience and management expertise, absent the restrictions of the
Postal Service's monopolies on first class mail delivery and the use of postal
mailboxes, to test certain fundamental assumptions relating to the provisions of
universal mail service in the United States; (Rep. Hensarling) which reduces the
bill's cost by ensuring that 100% of the Civil Service Retirement System (CSRS)
savings released under HR 22 will be directed to pay the Postal Service's
unfunded healthcare liability, instead of it flowing to the Postal Service for
its own use. In addition, the responsibility for paying the CSRS costs
associated with military service credits will remain with the Postal Service
instead of reverting back to the Treasury; (Rep. Pence) which strikes the
requirement that the first vacant slot on the Board of Governors is to be filled
by an individual with unanimous backing by the labor unions; and (Rep. Jackson
Lee) which establishes a Civil Rights and Civil Liberties Board Pilot Program
within the Postal Service to monitor and enforce claims of abuse that will call
for congressional review after three years. All of the proposed amendments
will be considered by voice vote.
July 26, 2005 -- GovExec.com
has reported that "Lobbyists say the White House is offering a possible
compromise on postal overhaul legislation -- scheduled for House floor action
Tuesday -- that could break a stalemate with lawmakers. The legislation would
shift the Postal Service's payments for military pensions to the Treasury
Department, a move the administration opposes. Under the White House proposal,
the Postal Service's $27 billion in payments to date for military pensions could
be used to finance the agency's retiree health benefits. The agency would be
required to make the military pension payments in the future. The White House
also has suggested allowing the Postal Service to borrow at least $2 billion in
each of the next two years, instead of giving the agency access to money slated
for an escrow account, as dictated by both House and Senate bills, according to
the lobbyists. Those borrowed funds could be used to help hold down rates in the
short term, while ensuring the legislation does not contribute to the federal
deficit, lobbyists said. A spokeswoman for Senate Homeland Security and
Governmental Affairs Chairwoman Collins said negotiations on the legislation are
ongoing."
July 26, 2005 -- As the Washington
Post has noted, "Congress has a heavy agenda this week before beginning
a monthlong vacation, planning to send President Bush long-stalled energy and
highway bills, a trade agreement with Central America and a billion-plus dollars
to plug a shortage in veterans health care programs. A postal reform bill set
for a House vote would overhaul the U.S. Postal Service to better compete now
that e-mail has reduced mail volume and private companies have taken much of its
delivery business. The bill is HR22."
July 26, 2005 -- Reuters
has reported that "The International Brotherhood of Teamsters said on
Monday it plans to renew its efforts to organize Overnite Corp., the trucking
company that has agreed to be acquired by United Parcel Service Inc."
July 26, 2005 -- The National
Postal Museum presents the story of Owney, the canine Railway Mail Service
mascot who traveled the globe and became a good luck charm for railway mail
clerks, at an interactive family program called Exploratory Post: Owney, on
Saturday, Aug. 13 from 1 to 4 p.m.
July 26, 2005 -- DM
News has reported that "The Federation of European Direct &
Interactive Marketing, said yesterday that it has developed a best practices
database to promote mail use in Europe. The database was created as part of the
ACTIN project (Acquis Communautaire Training Initiatives), which FEDMA has
worked on for the past year with 12 European postal operators and other parties.
The European Union-funded project was created to improve the skills of postal
operators in the new EU member states and candidate countries. In May 2004, the
EU welcomed 10 new countries -- Cyprus, Czech Republic, Estonia, Hungary,
Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia -- bringing the total to
25. Candidate countries are Bulgaria, Croatia, Romania and Turkey."
July 26, 2005 --
According to Forbes,
"Dutch Finance Minister Gerrit Zalm has asked parliament if it has any
objection to the government eventually selling its remaining 10 pct stake in TNT
NV."
July 26, 2005 -- Le
Monde has reported that "Claude Begle, chairman of DPD, the German
parcel service subsidiary of the French post office, La Poste, told the German
financial press yesterday that his company is planning to set up a worldwide
network. DPD's new framework should be in place by the end of next year."
July 26, 2005 -- The Korea
Times has reported that "The nation’s postal authority plans to
upgrade its system to prevent possible mail-related terrorist attacks. Korea
Post said on Tuesday it has created a special task force to work out measures to
improve its terror prevention regime. It plans to introduce a better detection
system for mail and parcel delivery to ferret out items that could contain
explosives or biological and chemical substances."
July 26, 2005 -- The Kyodo
news service has reported that "There is only a fifty-fifty chance that
Prime Minister Junichiro Koizumi's postal privatization bills will clear the
House of Councillors."
July 26, 2005 -- Japan
Today has reported that "Prime Minister Junichiro Koizumi dismissed
speculation Monday that he might dissolve the House of Representatives for a
snap general election even if the bills to privatize Japan Post are
passed."
July 26, 2005 -- Strategiy
has reported that "Empost has launched a comprehensive training program,
'Delivering Excellence’ to enable its employees to upgrade their skills and
enhance their efficiency, with the goal of raising standards of customer
service. The training program was launched and is being held in coordination
with the Training and Development Centre of Emirates Post. The program will be
spread over a period of 3 months, and all the activities will be managed and
coordinated by the Personnel Section of Empost. The 570 Empost employees will be
divided into 30 batches, and each group will receive two days of training."
July 25, 2005 -- The Sydney
Morning Herald has said: "Imagine having almost 2 billion customers a
day and you begin to realise the significance of six of the world's biggest post
offices getting together to take on the global courier business. Last night in
Hong Kong, the chief executives of Australia Post, China Post, Hong Kong Post,
Japan Post, Korea Post and the United States Postal Service launched the largest
express courier network in the Asia-Pacific. The alliance is a first of its kind
among postal service providers. In a move aimed directly at their private sector
competitors such as FedEx and DHL, the new express courier service guarantees
delivery in two to five days within the six postal regions, at rates that
Australia Post says are up to 40 per cent below those of the competition."
July 25, 2005 --
According to the Journal of Commerce:
July 25, 2005 -- The slate
of amendments readied for consideration when H.R. 22 is brought before the
House has been posted on the House Rules Committee web site.
July 25, 2005 -- The Alliance
of Nonprofit Mailers has said that "Nonprofit mailers urgently support
the fiscal reforms included in HR 22, the Postal Accountability and Enhancement
Act," said Chris Cleghorn, a nonprofit executive with Easter Seals in
Chicago and President of the Alliance of Nonprofit Mailers. "America's
charitable missions rely upon the mail to raise funds and disseminate
information that serves our country and our communities. Nonprofits look to
Congress this week to protect and strengthen the Postal Service so that we may
continue to rely upon mail as an affordable and reliable communications network
for all segments of the nonprofit community -religious, charitable, educational,
scientific and philanthropic groups," said Cleghorn.
July 25, 2005 - In a move
that will further strengthen its package delivery capabilities in the United
Kingdom, UPS
today announced an agreement to acquire LYNX Express Ltd., for $96.5 million
(£55.5 million) in cash. LYNX Express, one of the UK’s largest independent
parcel carriers, is majority owned by the private equity firm Bridgepoint
Capital (Nominees) Ltd. UPS expects to complete the transaction in the second
half of 2005, subject to customary closing conditions.
July 25, 2005 --
According to the Western
Mail, "Several years ago, domestic postal deliveries were early enough
for most people to read their incoming correspondence before leaving home for
work. Now, that is a rare luxury. There is also a concerted drive to close sub
post offices that are regarded as uneconomic. Such cuts are an inevitable
consequence of the decision to deregulate postal deliveries, allowing private
companies to compete with the Royal Mail in areas where it is easy to make a
profit. The more difficult task of providing a service in remote, rural areas is
left with the Royal Mail, which is less able to engage in the kind of
cross-subsidies that were possible before. Deregulation was introduced as a
direct result of international treaties signed by the UK Government after
virtually no public debate and, of course, without a referendum. Now we know
that the beneficiaries of such a significant change are not the service users or
the grassroots employees, but a small number of companies and Royal Mail
managers."
July 25, 2005 -- The
Age has reported that "Australia Post is teaming up with its postal
peers in the Asia Pacific region to offer a new low-cost express courier service
to the United States and selected destinations in Asia. The new courier service
was launched in Hong Kong and has been jointly developed by Australia Post,
China Post, Hongkong Post, Japan Post, Korea Post and the United States Postal
Service. Australia Post said the alliance is a first of its kind among postal
authorities and has been created to meet the demand for reliable low cost
international courier services in the Asia Pacific region. The express service
will guarantee delivery of items within two to five business days between
metropolitan areas of major cities within the network."
July 25, 2005 -- The Yorkshire
Post has reported that "LABOUR backbenchers have issued a bold warning
that they have enough votes to defeat the Government if it goes ahead with
proposals to break a key manifesto pledge by partially privatising the Royal
Mail. In a staunch defence of the principle of a state-owned postal operator, 50
Labour MPs have drawn what some of them have called "a line in the
sand" demanding that ministers make a clear commitment to "a
successful publicly-owned Royal Mail with all shares continuing to be owned by
the Government". Royal Mail Group chairman Allan Leighton is understood to
be urging the Department of Trade and Industry to allow the sale of a majority
stake of the post office to the organisation's 200,000 staff, to provide a
much-needed £2bn cash injection."
July 25, 2005 -- The Financial
Times has reported that "United Parcel Service is poised to make an
acquisition in the UK, strengthening the US company's position in one of
Europe's most fragmented package delivery markets. The most likely candidates
are all privately-owned companies, including ANC and Lynx Express."
July 25, 2005 -- The Asahi
Shimbun has reported that "Thirteen Liberal Democratic Party lawmakers
in the Upper House have already made up their minds not to support the postal
privatization bills, while one Diet member will abstain from voting, according
to an Asahi Shimbun survey conducted last week and information from party
leaders. Opposition votes from 18 LDP members in the Upper House would be enough
to shoot down Prime Minister Junichiro Koizumi's postal bills. At this point, at
least 27 members, counting those who refrained from replying, stand
undecided."
July 25, 2005 --
According to Reuters,
"Rising living standards in Russia, which has a population of 143 million,
and growing access to the Internet mean the market holds great potential for
electronic retailers, or 'e-tailers'. With prices for oil, Russia's main export,
running at close to $60 a barrel, there is no sign yet of an end to an economic
boom now into its sixth year. Retail sales increased by a 12 percent last year
to $194 billion, but internet retailers posted sales growth of 40 percent --
although with total sales of just $600 million they accounted for just a
fraction of the total. Russia has over 1,500 Internet shops. Serious operations
have to contend, meanwhile, with a shaky legal environment, widespread fraud and
a Russian postal service that cannot be relied on to deliver packages to
Kaliningrad in the west or Vladivostok, 11 time zones to the east. Few Russians
have credit cards and most of those who have them only use them to withdraw
their salaries. SpyLOG says 80 percent of the shops use couriers to deliver
their goods to the customer. Couriers usually take payments."
July 24, 2005 -- Bloomberg
has reported that "Prime Minister Junichiro Koizumi's plan to split up and
sell the Japanese postal system's mail, deposit and insurance services has no
better than a 50-50 chance of approval, said the Liberal Democratic Party's
leader in the upper house of parliament."
July 24, 2005 -- Where
is the labor movement heading in America? Kim Fellner has presented an
interesting perspective in MRzine.
July 24,
2005 -- El
Universal has reported that "Luis Carlos Ugalde, director of the
Federal Elections Institute (IFE), said at a forum sponsored by the
Inter-American Dialogue, a Washington think-tank, that "Within the next few
weeks, the IFE is scheduled to make public an agreement with the U.S. Postal
Service to coordinate the logistics of Mexicans voting through the mail."
July 24, 2005
-- The
Independent has reported that "The Post Office is to install 1,000
charge-free cash machines in branches as part of a deal with Bank of Ireland.
After criticism of the Post Office's alliances with fee-charging machine
providers, it is withdrawing from these contracts, although they may take some
time to unravel. With the new machines installed, the Post Office will offer
free cash-machine withdrawals in about 7 per cent of its 14,600 branches."
July 24, 2005
-- According to The
Independent, "Amid the melée of Thursday's attempted bomb attack on
London, an announcement slipped out almost unnoticed from Alan Johnson, the
Secretary of State for Trade and Industry, concerning Royal Mail. Mr Johnson,
himself a former postie, told the Commons that he had appointed Professor Sir
George Bain "to support me in working on Royal Mail issues." This is a
long way short of the full-blown inquiry into the future of Royal Mail. But Mr
Johnson did say one thing of significance, which is that while privatisation of
Royal Mail has been ruled out, employee share ownership most certainly has
not."
July 24, 2005 --
According to the Irish
Sun, "The worldwide air freight according the expert forecast-- in
terms of freight ton kilometers flown will average 5.6 percent annual growth
between 2003 and 2008. Expansion of intercontinental markets will be greater, at
6.1 percent average annual growth."
July
23, 2005 -- The latest issue of
the PostCom Bulletin is available online. In this issue:
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July 23, 2005 -- The Postal
Service has filed with the Postal Rate Commission a Stipulation and
Agreement offered for total and final settlement of Docket No. R2005-1. The
Stipulation and Agreement filed today represents a straightforward incorporation
of the Postal Service’s Request and its proposed rates and fees. The wording
of the agreement has been considered and refined after numerous discussions with
representatives of most of the active parties in the case. With limited
exceptions, the agreement adopts the Postal Service’s proposal to adjust
existing rates and fees by a uniform 5.4 percent across-the-board. It seeks a
Recommended Decision from the Commission no later than October 31, 2005. In a
separate communication to all parties of record in this proceeding, the Postal
Service has transmitted a copy of the Stipulation and Agreement and has asked
that those participants who are inclined to settle to return a signed signature
page to the Postal Service no later than August 5, 2005.
July 23, 2005 -- The agenda
for the August meeting of the U.S. Postal Service Board of Governors is
posted on the Postal Service web site.
July 23, 2005 --
According to CBC
News, "Canadian libraries will continue to benefit from a special
shipping rate from Canada Post, after an announcement from National Revenue
Minister John McCallum Friday. McCallum, the minister responsible for Canada
Post, issued a statement about the subsidy program, which allows libraries to
mail each other books for rates substantially lower than commercial rates ”
usually less than a dollar a book – and a boon for smaller rural libraries. In
April 2005, the department of Canadian Heritage and Canada Post had agreed to a
one-year extension of the book rate. In a release issued Friday, McCallum said
the special rate will continue beyond April 2006. A representative from the
minister's office said that details, including funding the book rate program and
exactly how long the rate would continue, still needed to be worked out."
July 23, 2005 -- Frankfurter
Allgemeine Zeitung has reported that "German mail-order group Otto is
planning to expand its logistics services and offer them more to other companies
in future. The group says that it intends to expand activities relating to the
storage of goods and to offer companies that do not form part of the Otto group
access to its entire logistics chain. This means that Otto will be competing
with companies such as Deutsche Post, the German postal service operator."
July 23, 2005 --
The International
Freedom of Expression Exchange has reported that ""Le Front"
editor-in-chief Joseph Bessala Ahanda on 21 July 2005 has been released from
prison two days after a delegation of journalists met the director of criminal
affairs at the Justice Ministry. "The end of this arbitrary imprisonment is
good news for Cameroon's journalists," the organisation said. Ahanda was
arrested on 6 July and held pending trial in connection with three reports he
published about the alleged embezzlement of 300 million CFA francs (approx.
US$546,000; 457,000 euros) by Maurice Bayémi, the head of the Cameroon postal
services, Campost, and his associate, Jean-Pierre Amougou Belinga, the owner of
the Anecdote press group. Ahanda is still due to stand trial. No date has yet
been set for a hearing."
July
22, 2005 -- The latest copy of the National Association of Postmasters of the U.S. electronic governmental affairs newsletter is available on the NAPUS web site.
July 22, 2005 -- As GovExec.com
has noted, "The House plans to consider a sweeping postal overhaul bill
next week, despite lingering differences with the White House. The bill
sponsored by Rep. John McHugh, R-N.Y., was passed unanimously by the House
Government Reform Committee in April. The House Rules Committee will meet Monday
to formulate a rule for the legislation, with floor action likely slated for
Tuesday."
July 22, 2005 -- Traffic
World has reported that "Congress snuffed out the hopes of finishing a
highway bill this week when it approved a five-day extension of the previous
highway bill Thursday night. But it left the flame of hope flickering that an
agreement will be reached before Congress leaves for its month-long August
recess. The House-Senate conference committee that is working until the wee
hours of the morning on a deal is still reportedly in disagreement over the
funding formula of how much gas tax revenue each state gets."
July 22, 2005 -- In a
letter sent to all members of the House and Senate, the presidents of the National
Association of Letter Carriers and the National Rural Letter Carriers
Association have urged support for "legislation now pending before
Congress to reform the United States Postal Service."
July 22, 2005 -- The Financial
Times has reported that:
July 22, 2005 --
According to Reuters,
"Japan's ruling coalition aims to enact bills to privatise the postal
system, including the world's biggest bank, on Aug. 5."
July 22, 2005 -- The Associated
Press has noted that "For more than 30 years, students at Oregon State
University have been able to buy stamps and other mailing supplies at the postal
substation in the basement of the Memorial Union. The service is scheduled to
end Aug. 12 because of a contract dispute about the electronic equipment used to
weigh letters and packages and calculate postage rates. The closure would leave
about 23,000 students, faculty and staff with no postal service on a campus
large enough to have its own ZIP code The substation is operated by the OSU
Bookstore under contract with the U.S. Postal Service."
July 22, 2005 -- Xinhua
has reported that "Reform of the country's postal system, which has been in
the pipeline for a couple of years, was finally approved on Wednesday by the
State Council, China's cabinet. The scheme focuses on splitting the government's
administration of the industry away from the postal business. Savings banks will
also be established. According to the scheme, the State Postal Bureau will be
restructured into a regulator that will supervise the sector, responsible for
making rules and setting standards. It will be independent of the business
operation. Meanwhile, China Post Group Corp will be set up to run various postal
services. Currently, the State Post Bureau combines the functions of industry
regulator and profit-making company. Also, postal saving services, which
contribute approximately 39 per cent of the total revenue of China's postal
system, will be separated and a new bank will be formed."
July 22, 2005 -- The
Standard has reported that "Kenya will host the 2008 Universal Postal
Union (UPU) congress, Postmaster General Dan Ameyo has said. Yesterday,
Information and Communications Minister Raphael Tuju introduced the visiting UPU
Director General Edouard Dayan whom he said was in the country to assess Kenya’s
suitability to host the event. Tuju said discussions centred on issues
concerning logistics of hosting the meeting that is expected to draw over 2000
participants and interest groups from 190 United Nations member countries. He
said they had also discussed security and infrastructural issues with
Dayan."
July 22, 2005 -- As the Financial
Times has noted, "The 30-minute ferry journey across the Solent to the
Isle of Wight is famously one of the most expensive, mile-for-mile, in the
world. So it seems strange that Royal Mail should have chosen the island as the
location for a vehicle repair centre serving three sorting offices on the south
coast of England. Such inefficiencies are typical of the challenges facing Adam
Crozier, chief executive of Royal Mail, as he tries to ready the UK’s
350-year-old postal carrier for full competition with a spread of private sector
operators in less than six months time."
July 22, 2005 -- From the
U.S. Newswire:
"On Monday afternoon, July 25, the U.S. Postal Service will join five of
the world’s leading postal administrations — Australia Post, China Post,
Hong Kong Post, Japan Post and Korea Post – to announce a new, collaborative
express service in the Asia Pacific Rim market. Senior executives from each
leading service will provide insight into the collaboration and its first
venture – a new courier service for the Asia Pacific region. Mr. Paul Vogel,
U.S. Postal Service vice president network operations management and Mr. James
Wade, U.S. Postal Service vice president international business, will
participate, as well as: -- Mr. Graeme John, managing director, Australia Post
-- Mr. Ma Junsheng, deputy postmaster general, China Post -- Mr. Allan Chiang,
postmaster general, Hong Kong Post -- Mr. Takahashi Toshihiro, senior executive
vice president, Japan Post -- Mr. Joong-Yeon Hwang, president, Korea Post."
July 22, 2005 -- From the
PR
Newswire: "Ryder System, Inc., a global leader in transportation,
supply chain management and warehousing solutions, today announced it has been
awarded a multi-year contract by the United States Postal Service (USPS). Under
the contract, Ryder will develop and manage a customized transportation solution
to optimize the USPS' Non-Mail Freight transportation network nationwide,
supporting USPS locations nationally and internationally. Ryder will provide
transportation procurement, shipment planning and execution, compliance
management and other related services. The rollout is expected to be complete in
November 2005."
July 22, 2005 -- Business
Week has a piece that explains "Why Zazzle Dazzles John Doerr."
July 22, 2005 --
According to the Gilroy
Dispatch, "News that mail carrier Patricia Finley might be fired raises
lots of red flags. Finley was featured in a recent Dispatch story about problems
caused by a do-not-dismount order issued by Gilroy Postmaster Penny Yates. The
removal notice that Finley received cited leaning too far out the window of her
vehicle and using her vehicle to move garbage bins that were blocking mail boxes
as reasons for the attempt to terminate her employment. The story on Yates’
ill-advised do-not-dismount order, issued in violation of postal service policy,
must have been an embarrassing episode for the Gilroy postmaster."
July 22, 2005 --
According to the Daily
Champion, "INFORMATION and Communication Technology (ICT) has become an
integral part of today's modern society. Without doubt this technological
innovation is fast spreading across the globe, thereby shrinking the world into
the global village foretold many years ago by Canadian philosopher Marshall
McLuhan, famous for gnomic utterances such as "the user is the
content". He foresaw an information millennium in which print was obsolete
and we all lived - apparently quite happily - in a global village. It is a very
vital component because of its advantage in terms of wider reach, reaching far
across the rural settlements. Unfortunately very little priority is attached to
this component because a lot of people erroneously believe that information and
communication technology is the direct replacement of the postal service."
July 21, 2005 -- From the
Business
Wire: "Entrepreneurs in record numbers are setting up shop on eBay,
according to a new survey conducted for eBay by ACNielsen International
Research, a leading research firm. More than 724,000 Americans report that eBay
is their primary or secondary source of income. In addition to these
professional eBay sellers, another 1.5 million individuals say they supplement
their income by selling on eBay, according to the July 2005 survey. In the first
six months of 2005, eBay members in the U.S. sold merchandise worth
approximately $10.6 billion. In order to support this growing economic force,
eBay and the United States Postal Service have teamed to create an innovative
educational opportunity that brings online selling expertise and experience to
neighborhoods across the country: the eBay Day Small Business Tour. eBay sellers
overwhelmingly use the Postal Service for their shipping needs."
July 21, 2005 -- UPS
has reported a robust 22.2% gain in diluted earnings per share for the second
quarter of 2005, driven by double-digit export volume gains in every
international region and an increase of 387,000 packages per day in the United
States.
July 21, 2005 --
According to Forbes,
"Once again, reform of the anachronistic U.S. Postal Service is on the
Congressional agenda. If the reform passes, it could head off next year's
planned 5.4% postal rate increase—the one that will push the cost of mailing a
single letter to 39 cents from 37 cents." I-I-I-I don't think so.
July 21, 2005 -- The National
Post has reported that "A Canada Post employee who was fired after he
exposed "shift-selling" within the corporation's ranks is
celebrating after an arbitrator ruled his job must be reinstated."
July
21, 2005 -- The Office
of the Consumer Advocate (OCA) has notified the Postal Rate Commission
that it will not be filing a direct case in the Docket No. R2005-1 proceeding.
The Postal Service and OCA have come to an agreement in which the Postal
Service has agreed to establish a working group, to include OCA, to
investigate the possibility of a non-denominated stamp that, once purchased,
would be valid in the future for first-ounce, single-piece, First-Class Mail
postage, regardless of the thencurrent rate. Second, the Postal Service has
agreed to post, for certain products, nationwide service performance data at
usps.com on a quarterly basis. The Postal Service will also post a notice at
its post offices, including stations and branches, advising customers that
performance data are available at its website. The specific terms of these
commitments will be addressed in the near future in a letter summarizing the
agreement.
July
21, 2005 -- CEP News (Courier-Express-Postal), published by the MRU Consultancy, has reported that:
In Austria resistance is mounting against the proposal to give the government a veto right in the matter of post office closures.
The German government has sold the last post shares still in its possession.
Deutsche Post CEO Klaus Zumwinkel has declared that "Deutsche Post does not question Saturday delivery at present and as far as the future is concerned: We will continue to provide our customers with mail deliveries on Saturdays."
The German Cartel Office reached yet another decision in favour of private competitors on the postal market. The post has been ordered to cancel the obligatory reimbursement clause from its partial access contracts with private mail operators.
DHL is planning to take over logistics operators in the Baltic states.
The MRU, founded in 1992, is the only consultancy in the German speaking area, 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.
July
21, 2005 -- DM
News has reported that "Fifty-three percent of credit cardholders
became aware of their last credit card through direct mail, a Vertis study
released yesterday found. Credit card marketers sent a record-high 1.4 billion
direct mail offers in the first quarter, up 11 percent over last year,
according to Mail Monitor, the direct mail offer tracking service from
Synovate."
July
21, 2005 -- The American
Postal Workers Union has reported that "A federal appeals court has
ruled that the Postal Service’s return-to-work requirements for absences of
more than 21 days are in conflict with the Family and Medical Leave Act. The
court ruled that the Family and Medical Leave Act requires employers covered
by the law to return employees to work after their approved FMLA leave upon a
basic showing that they are able to perform their duties. This is done by
presenting a statement to that effect from the employee’s own physician, the
court concluded."
July
21, 2005 -- The
Times has reported that "ROYAL MAIL will be forced to lay off 40,000
workers if the postal regulator presses ahead with plans to impose price
controls on stamps, Allan Leighton, chairman of the mail group, has
warned."
July
21, 2005 -- The Financial
Times has reported that "MPs are to conduct a review into the Royal
Mail's future after the postal services market is opened up to full
competition, it was announced yesterday. The review by the trade and industry
select committee parallels a government-commissioned review into the same
subject which was promised in Labour's general election manifesto but has yet
to be announced. Peter Luff, Tory chairman of the committee, said the future
of the state- owned postal operator was such a big issue it demanded an
inquiry by the MPs, even if the government was setting up a separate
investigation. The committee has invited written evidence by September 30 and
said it would set dates for oral hearings after that deadline."
July
21, 2005 -- Bloomberg
has reported that "Bank of Japan Governor Toshihiko Fukui said the sale
of Japan Post should be fair to banks, brokerages and insurance companies in
the private sector."
July
21, 2005 -- Ha'aretz
has reported that "Postal Service Director General Yossi Shelli announced
Wednesday he will be resigning after three years in office because of a
dispute with the Communications Minister Dalia Itzik. During her first three
months in office, Itzik met with Shelli only once. During that lone meeting
the minister asked the director general to resign, a request which Shelli
rejected. But Shelli recently changed his mind and agreed to quit his
post."
July
21, 2005 -- From the BusinessWire: