Postal News for December 31, 2006

For an alternative perspective on the day's postal news, you might want to check out the PostalNews.com web site. For additional coverage on the international scene, check out the PostInsight web site.

As Business Week has noted, "Every holiday season, UPS Inc. and FedEx Corp. bank on booking fat profits as people buy and ship holiday gifts, and while this year the delivery companies appear to have withstood a moderating economy, they still had to contend with a fair bit of meddling from Mother Nature."

The Review & Observer has reported that "small businesses fear changes to the Royal Mail's postal system will cost them more money, according to a survey of nearly 200 firms carried out by the Forum of Private Business (FPB). While the current system is based purely on the weight of your items, the new system will be based on both the size, weight and thickness of the item. Prices will be based on three size formats - letter, large letter and packet."

ETNA has reported that "The number of SMS messages sent on December 31 and January 1 is expected to increase five-fold to 70 million messages while the number of e-cards sent during the same period would rise by 30-40 per cent. The majority of electronic well-wishers are aged from 20 to 29, while young people below age 20 are the second largest group using SMS and e-cards. Unsurprisingly, older people rely more on traditional postal communication to deliver their New Year wishes to friends and families."

One writer for the Tallahassee Democrat reported that "This year, as the holidays loomed, I decided not to automatically dump the catalogs in the recycle bin. Instead, I held on to each one and kept a running count. Between Nov. 9 and Christmas Eve, exactly 100 catalogs were lugged over to my house by the overworked U.S. Postal Service. I'm not exaggerating the number. It was 100 on the nose. Bundled together, they weighed 26.2 pounds. It would cost $67 to mail them to myself via Express Mail. Wasn't the Internet supposed to make all of this obsolete?

According to The Chronicle, "As the only company contracted by the U.S. Postal Service to collect and deliver mail to four coastal islands, Griffing is responsible for transporting the mail from Port Clinton to each island once a day. Delivering mail is one of the first ways that pilots prove they have the aptitude to tackle the challenges that come with flight, and it is often the first rung on a professional pilot’s ladder."

The Stamford Advocate has noted that "Pitney Bowes CEO celebrates a decade of leadership and change."

The New York Times has reported that "when Congress approved the Postal Accountability and Enhancement Act this month, Pitney’s future brightened even more. Michael J. Critelli, Pitney’s chief executive and a longtime proponent of postal reform, recently elaborated on the future of mail — and of Pitney."

Postal News for December 30, 2006

In the opinion of the Battle Creek Enquirer, "While you are unlikely to notice any difference in the mail coming to your home, some changes signed into law last week for the U.S. Postal Service could have a long-term impact on helping to stabilize postal rates and operations. The new legislation represents the first major changes in postal operations in decades, and advocates say the changes are necessary and should help to reduce or delay future rate increases."

The Denver Post has reported that if you're "looking for a package from United Parcel Service. Be prepared to sit tight. The private mail carrier was struggling to deliver hundreds of thousands of packages waylaid by last week's blizzard when the latest storm hit Thursday. The company said it wouldn't decide until early today whether to halt operations temporarily, leaving still more hundreds of thousands of packages in limbo."

The BBC has reported that "Postal services in Stoke-on-Trent have been disrupted after sorting staff staged an unofficial walkout. Workers at the Burslem delivery office walked out early on Friday in protest over a colleague's suspension for alleged "aggressive behaviour". A Royal Mail spokesman said the action meant no deliveries would be made on Friday in the ST6 postcode area." [Aren't wildcat strikes fun?]

The Eagle Tribune has noted that "Salem, N.H., resident Bill Fournier is glad his Social Security check is directly deposited into his bank account. If it wasn't, he'd be without his monthly income at least until Wednesday. The delivery of regular mail will be halted after today until Jan. 3, because President George Bush declared Tuesday a federal holiday in remembrance of former President Gerald Ford, who died at age 93 earlier this week. Wil Carpenter, vice president of the Merrimack Valley Chamber of Commerce, said the timing of the federal holiday could be bad news for some businesses."

The Associated Press has reported that "Wisconsin's revenue agency said Friday that it sent as many as 170,000 forms to taxpayers with mailing labels mistakenly printed with their Social Security numbers. The state Department of Revenue was scrambling to alert taxpayers to be on the lookout for the mailings." [And folks are worrying about mail order firms disclosing private information...???]

According to Multichannel Merchant, "The U.S. Postal Service's proposed rate changes and new guidelines from just about every other major parcel carrier mean that no matter what type of product you ship or which carrier you're using to deliver goods to your customers, you can expect to pay more to ship your parcels in 2007."

Postal News for December 29, 2006

The following reports posted on the U.S. Postal Service Office of Inspector General website today.  If you have additional questions concerning the report, please contact Agapi Doulaveris at 703.248.2286. 

• FT-AR-07-002 - Audit Report - Opinion on the Postal Service's Special-Purpose Financial Statement dated November 17, 2006 http://www.uspsoig.gov/FOIA_files/FT-AR-07-002.pdf
• DR-MA-07-002 - Management Advisory - Delivery Confirmation for Inbound International Mail dated November 21, 2006 http://www.uspsoig.gov/FOIA_files/DR-MA-07-002.pdf

The Financial Times has reported that:

• One year after the introduction of full competition in the country's postal market, everyone appears to be a winner. Customers are benefiting from record levels of service and big business mailers are enjoying substantial savings in costs. Eighteen new postal operators have been licensed and have seized a bigger share of the market than the regulator expected, handling more than 10 per cent of the mail. Royal Mail remains the dominant force in the industry despite losing its monopoly. Its competitors hand over most of the mail to the state-owned operator for final delivery, leaving it with 97 per cent of postal revenues.

• Orange-clad postal workers are expected to hit the streets next year, putting the state-owned Royal Mail under pressure. TNT, a subsidiary of the privatised Dutch postal group, says it wants to send postmen and women wearing orange uniforms - TNT's corporate colour - out to deliver mail to homes and workplaces in selected cities. The company already handles more than 5 per cent of UK mail, through contracts with business customers to collect and sort their post before handing it overfor delivery by Royal Mail under so-called "downstream access" arrangements. 

Iceland Review has reported that "Employees of postal service Íslandspóstur are busy locking all outdoor mailboxes in Reykjavík and nearby towns to prevent sabotage on New Year’s Eve. Experience has shown that some people like stuffing live fireworks into mailboxes on New Year’s Eve to get an extra explosion, damaging the mailboxes in the process. The mailboxes will not be unlocked until mid-January."

According to Forbes, "More than ever this holiday season, U.S. shoppers left the driving to the delivery guys, opting to make their gift purchases online and trusting to shipping companies to get the goods to their destinations on time. Online retailers seem to have had a better season than more traditional merchants."

From PR Newswire: "comScore Networks, a leader in measuring the digital age, today released its estimates of consumer online non-travel (retail) spending at U.S. sites for the 2006 holiday season through Tuesday, December 26."

According to The Guardian, "Royal Mail's letters business is a conundrum. A state-owned organisation operating in a free market. Charged with making profits but obliged to offer a universal service delivering to 27m addresses six days a week. The competition wants to dig deep into its market share and for a year has had the freedom to do so. Top management wants to open up the share capital to the workforce - a proposal that leaves the government facing a judgment that would stretch Solomon."

As the Greeley Tribune has noted, "Just when it seemed like holiday mail was caught up after last week's blizzard crippled transportation in the state, mail carriers are preparing for the second wave of snowfall expected to hit today."

It's winter, folks. Be sure to check the Postal Service's National Mail Service Updates to get the latest information on the impact of winter weather on mail service.

Postalnews.com has noted that the National League of Postmasters has acknowledged that "There has been considerable controversy regarding mitigating factors over the last few weeks, and especially during this last week."

Aftenposten has reported that "a test of Norway's postal service Posten revealed that their service falls far short of requirements."

According to the Associated Press, "the postal service prepares for new Potter." [Nooooo. Not Jack....Harry!]

NewIndPress has reported that "The New Year is knocking the doors and it’s time now for sending cards to greet the near and dear and all those who matter. And the postal department has come up with e-greeting facility. Under this new initiative, the customer can choose from a set of designs and designate the address to which the greeting has to be sent. The postal department would deliver the greetings for New Year, Eid and season’s greetings that are uploaded on the e-post site quickly. The cost of this e-post is just Rs 10." See also the Hindustan Times.

Economic Times has reported that "The Department of Posts (DoP) and the government-owned Bharat Sanchar Nigam (BSNL) will jointly put ATMs in rural areas across the country. In rural areas, post offices will be used as sites for providing towers. BSNL will also use services of postmen for collecting telephone bills in the remote areas."

Postal News for December 28, 2006

A copy of the Winter issue of the International Mailers Advisory Committee (IMAG) Cross-Border Report and a Special Issue of the Cross-Border Report has been posted on the IMAG web site.

The most recent copy of the Quebecor World Logistics newsletter, LogisticSolutions- Issue #47 has been posted on this site.

According to MediaWeek, "The Internet is coming into its own as a shopping destination, new figures released Wednesday show. The findings come from the Top 40 Online Retail Satisfaction Index produced by research company ForeSee Results of Ann Arbor, Mich. As expected, online perennial favorites, including Amazon, Netflix, LL Bean and QVC, held their top positions as shoppers’ favorites."

The U.K. Postal Services Commission (Postcomm) "has hailed the first year of full competition as a promising start but warned there are more challenging times ahead for postal operators."

Die Welt has reported that "Deutsche Post, the German postal service operator, has reached an agreement with the services sector union Ver.di regarding working hours, thereby warding off the threat of strike action. Under the agreement, Deutsche Post employees with civil servant status, numbering around 60,000, will continue to work only 38.5 hours per week in the next six months, rather than 41 hours as originally envisaged."

NewKerala.com has reported that "Mail Business Units (MBU), aimed at avoiding delay in bulk delivery of mails to corporate customers, will be launched at post-offices in four districts under the Vijayawada region from January 5, a senior postal department official said."

According to the American Spectator, "There is a place in Miami where you can get first-class service, push the envelope, get priority treatment and express your innermost desires, all for about twenty bucks. The name of this treasure? The United States Postal Service."

The Citizen has reported that "while it is generally accepted an army marches on its stomach, the men of 11 Field Postal Unit (11FPU) work on the dictum that mail boosts morale. With this as motivation the 11 unit members who work out of AFB Waterkloof in Centurion literally move mountains to ensure South African soldiers on peacekeeping and peace support missions in Burundi, the DRC and Sudan regularly receive mail and parcels from family and loved ones. And soldiers in these African countries make full use of the postal service offered by this Reserve Force unit."

As the Lakeland Ledger has noted, "The idea of postal councils started in the 1960s when the U.S. Postal Service wanted to get input from its customers on mailing issues."

Postal and logistics guru Alan Robinson has noted that "in reading a biography of Andrew Jackson and it turned out that “postal reform” became a major conflict between secularist reformers and religious conservatives. Here is the quote: “The chief danger to the purity of the Sabbath, according to the General Union for Promoting the Observance of the Christian Sabbath, lay in the transportation of mail on that day. In 1810, postmasters had been ordered to keep their offices open for one hour on Sundays after the arrival of mail. Remonstrances against this practice drifted into Congress during the next few years but to no effect. In 1825 post offices which received mail on Sunday were required to be kept open all day. It was this deed of profanation which the sabatarians now determined to undo.” At some point the religious conservatives won out and Sunday delivery was stopped. So now we know the issue was not 6 or 5 days per week delivery but 6 or 7 days per week delivery."

The BBC has reported that "Managers at the Royal Mail say they are beginning to plan their strategy for delivering the final Harry Potter book to UK fans, once it is published."

NetworkWorld has reported that "USPS has one of the largest networks in the world, connecting 38,000 locations nationwide and supporting 335,000 users. It spends around $180 million per year on its network infrastructure. USPS overhauled its data and voice networks in 2006. The independent federal agency renegotiated and expanded its primary data network contract, while using a secondary contract to upgrade 3,000 sites. The outsourced network is being upgraded to support T-1 and above connections at all of its sites."

According to the Daily Item, "with Christmas over, postal workload will increase with catalogs, tax forms."

According to Market Watch, "This may be the year bricks-and-mortar retailers are finally forced to take the Internet seriously, as Christmas e-tail sales may now be seriously impacting storefront sales. And this writer sees an entirely new seasonal pattern emerging."

Postal News for December 27, 2006

The Columbo Page has reported that "Sri Lanka's post offices are looking forward to the arrival of 7.5 million new stamps by air cargo tonight as they do not have stocks to issue to the customers seeking stamps to mail piles of greeting cards."

The Wall Street Journal has noted that "Retailers posted a disappointing 1.7% increase in comparable sales for the week ended Dec. 23, putting holiday sales on track to hit the low end of expectations, according to the International Council of Shopping Centers." [Now the question is: How did mail order merchants make out?]

According to the Washington Post, "For some of the nation's newspapers, Google's offer was too good to pass up. This fall, the search-engine company proposed to show how it could help newspapers sell print advertising to the hundreds of thousands of small merchants who buy Internet ads from Google. Advertisers would go online and bid on the excess ad inventory of daily newspapers, giving them a much-needed revenue boost. Now, two months into a test with 100 advertisers and 66 newspapers, Google executives say that its pilot program has exceeded their expectations and that they will roll out an expanded version in the coming months. The top five participating newspapers are getting several bids a week from advertisers, the company said."

The Irish Independent has reported that "A private members motion was recently put forward in Dail Eireann by the Fine Gael party to address the following issues: The appalling low level of pay to a substantial number of post masters who effectively have subsidised the service by providing premises and working at a rate below the minimum wage and in some cases, below the poverty line. Provide for the computerisation, modernisation and upgrading of the entire network of post offices and sub post offices with a view to providing a reliable, efficient and cost effective next day delivery service, throughout the entire country."

The Hindu has reported that "The Permanent Lok Adalat has directed the Post Master General, Kerala Circle, to pay Rs.25,000 as compensation to a Master of Computer Applications (MCA) graduate for default in delivering the admit card sent to the candidate by a company based in Bangalore for the recruitment of graduate-trainees."

The Syracuse Post-Standard has reported that "A proposal that would let New York hospitals deny new financial protections to patients unless they live in certain ZIP codes is being criticized by a consumer group. Richard Kirsch, executive director of Citizen Action, said the proposed rule would penalize patients referred to hospitals far from home and give hospitals a way to turn people away or overcharge them. "A hospital's service area has to be based on geography and community, not by postal delivery routes," Kirsch said."

Gulf Times has reported that "the Chinese postal authorities have sought the co-operation of the Q-Post in developing a customer-friendly plan with which they felt could win visitors during the Olympic Games 2008 to be held in Beijing, and the Asian Games (in 2010)."

According to the Rocky Mountain News, "Post offices in Colorado and Wyoming Tuesday were dealing with a headache expected to hit 90 million packages, letters and magazines this week. The approximately six-day backlog was brought on by last week's blizzard that compounded the normal holiday rush."

The Center for Media Research has reported that "Bob Jordan, president of International Demographics, Inc., notes that "The media habits of the affluent empty nesters are dominated by newspapers and the Internet." According to the report, more than 27 percent spend an hour or more each day reading a newspaper (index 159) and 38.7 percent spend 430 minutes or more each week on the Internet (index 107). Radio, television and direct mail all index at less than 100 with the affluent empty nesters."

From PR Newswire: "Cenveo, Inc. announced today the signing of a definitive merger agreement pursuant to which Cenveo will acquire all of the shares of Cadmus Communications Corporation. Headquartered in Richmond, Virginia, Cadmus, with 3,300 employees, is the world's largest provider of content management and production services to scientific, technical and medical journal publishers, the fifth largest periodicals printer in North America, and a leading provider of specialty packaging and promotional printing services."

Media Daily News has reported that "Futurist consultant Faith Popcorn says 2007 promises a new identity: the "networked self." It is characterized by a mind-set that is more ecologically aware and possesses a greater sense of personal responsibility. For brand marketing, the message is: Don't be static. Aim your products to the right person at the right time. But companies are also expected to reduce clutter and act socially responsible."

The International Herald Tribune has reported that "Portuguese postal workers staged a nationwide strike Wednesday to protest the handling of their work by subcontractors. The strike was expected to affect the transportation, distribution and handling of mail across the country."

Postal News for December 26, 2006

The Business Standard has reported that "Fund houses’ tie-ups with the postal department for marketing their schemes through post offices are yet to take off in a bigger way. UTI MF, Principal PNB AMC, Prudential ICICI and SBI Mutual Fund have such arrangements with the department."

The Wall Street Journal has queried, "What if Congress voted to reform a huge government service, and nobody cared? Well, lawmakers did just that with the U.S. Postal Service in the dying days of the 109th Congress -- by voice vote, no less -- and the action attracted nary a whit of attention. Twenty years ago such an effort would have meant a brutal public brawl, but President Bush signed the measure with little fanfare last week. There's a lesson here about the luck of technology in transcending otherwise immovable government monopolies."

Gulf Times has reported that "most major postal corporations of the world stand to gain considerably from the Universal Postal Union's (UPU) guidelines on giving postal franchisees to private operators, said Q-Post chairman and chief executive Ali Mohamed al-Ali yesterday. Speaking to journalists on the sidelines of the ceremony where Qtel and Q-Post signed an agreement to facilitate the sale of Qtel's pre-paid cards through post office branches, Ali said the UPU, the apex body of postal corporations worldwide had instructed its affiliates to cut down overheads wherever it was possible."

Postal News for December 25, 2006

As the New York Times has noted, "Everybody’s excited about online advertising, but the rates keep going up and up and up. Online advertising revenues are expected to grow by 31 percent to $16.4 billion this year."

The Associated Press has reported that "An army of 1,500 mail carriers fanned out across Colorado and Wyoming on Christmas Eve, making rare Sunday deliveries in a bid to get hundreds of thousands of blizzard-delayed packages to their destinations on time. Normally, about 100 carriers would be working on Sunday, Postal Service spokesman Al DeSarro said. The extra workers all volunteered for the additional duty, he said."

Uni Asia & Pacific has reported that "UNI-Apro Postal Committee held its meeting in Gold Coast, Australia, 12-13 Dec 2006. The UNI-Apro Postal committee agrees to initiate various activities forthcoming year such as organising private courier, express, parcel and logistic companies as well as atypical workers in the post offices."

Postal News for December 24, 2006

The Sunday Mirror has reported that "customers were left facing waits of up to an hour and a half as they tried to meet the Christmas delivery deadline, a Sunday Mirror survey found. And in some cases the long waits may well have been in vain, with both Royal Mail workers and customers still baffled by the new pricing scheme. A Sunday Mirror investigation last month revealed how the system, which prices packages by size as well as weight, is proving difficult. For an identical item, our reporters were quoted £1.27, 44p and 32p postal charges."

The Times has reported that "the chairman of J Sainsbury, Britain’s second-biggest food retailer, has been approached to become deputy chairman of Royal Mail, making him a potential successor to Allan Leighton as head of the postal group."

Postal News for December 23, 2006

According to the Washington Post, personalized postage stamps provide "A Tiny Canvas for Holiday Mirth."

Dow Jones has reported that "FedEx Corp. said Friday it got a formal information request in connection with an ongoing anti-competitive investigation by the Directorate General for Competition of the European Commission. The investigation involves possible anti-competitive practices in air freight transport services in the European Union/European Economic Area, the Memphis freight transportation company said in a Securities and Exchange Commission filing. The filing didn't say what type of information European authorities requested. The European investigation is in addition to an ongoing probe by the U.S. Justice Department's antitrust division, the filing said."

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

• The new postal reform law is expected to have a significant and positive impact on the Postal Service’s financial footing. In an interview, Postmaster General Jack Potter told the PostCom Bulletin the bill sets the USPS on a path to fully fund its long-term liabilities, a move that benefits the organization, its customers, its employees and retirees.

• The Association for Postal Commerce and the Mailing & Fulfillment Service Association this week filed a brief in the R2006-1 rate case charging the Postal Service with failure to adhere to the Postal Rate Commission’s established position that worksharing discounts should fully reflect efficient component pricing.

• The Postal Rate Commission this week endorsed the USPS objectives for its Evolutionary Network Development program – enhancement of operational flexibility and efficiency, capture of resulting cost savings, and preservation of current service standards. The PRC said the goals are “fully consistent with the policies and criteria of the Postal Reorganization Act.”

• The U.S. Postal Service this week filed a notice in the Federal Register proposing changes to international postage rates and rate design, to take effect in May 2007. That’s the same time the USPS plans to implement new domestic rates. In addition to international rate increases, the USPS proposed a “major redesign” of its international products.

• Potter names Brennan VP, Area Operations, Eastern Area. New study shows direct mail spending jumped 7.5 percent in 2006. Trucking firms warn of slowing U.S. economy. FedEx buys ANC, will serve U.K. market.

• U.K. post office cuts tied to lack of customers. Deutsche Post to cut jobs. Sagawa Express, China Postal Bureau in deal for delivery service. Irish ComReg gets hearings after An Post seeks 15 percent price hike.

• Mailer FAQs On The “Postal Accountability And Enhancement Act”

Hey! You've not been getting the weekly PostCom Bulletin--the best postal newsletter anywhere...bar none?  Send us by email your name, company, company title, postal and email address. Get a chance to see what you've been missing.
 

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Air Cargo World has reported that "UPS is undergoing changes at the top as it heads into the new year. The company promoted Chief Financial Officer Scott Davis to vice chairman, the immediate No. 2 position behind Chairman Mike Eskew and putting Davis in line as a potential successor to Eskew."

Direct Traffic has reported that "The majority of US shoppers who visit retail websites first are more likely to spend more and shop more in local stores, a new study reveals. A poll of 37,500 people by multi-channel shopping services website ShopLocal claims that frequent internet usage by consumers also drives traffic into stores, with 95 per cent of those checking deals online each week visiting a retailer's store at least once a month. More than two thirds (69 per cent) of respondents claimed to have gathered information on products via online advertising circulars before buying products in stores and a quarter (27 per cent) of those quizzed had purchased items on the internet after viewing online marketing and advertising material."

From Business Wire: "As the December 31st deadline for Phase III of the USPS-mandated postage meter migration draws near, Pitney Bowes Inc. PBI encourages U.S. businesses to use this transition to achieve better overall mailstream management. The latest migration is Phase III of the USPS's Plan for Secure Postage Meter Technology, which began in 1995, and is designed to help prevent tampering and misuse. USPS has granted limited exceptions for certain lease customers"

Postal News for December 22, 2006

The latest copy of the National Association of Postmasters of the U.S. electronic governmental affairs newsletter is available on the NAPUS web site.

The UK's Postcomm (the Postal Services Commission) has published for consultation its draft business plan for 2007-2008. Comments should go to Matthew.Ward@psc.gov.uk by 20 March 2007.

World Mail & Express conference series organisers Triangle are currently putting together the programme for the 2007 European event in London on 22-23 May next year. The theme of the conference will be ''Today and Tomorrow'', looking at both current and future issues in the international post and parcel industries. The internationally-recognised World Mail & Express series of conferences has been held around the world since 1988 and in recent years has operated regionally, with events focused on Asia Pacific, the Americas, Middle East and Africa as well as Europe. It provides a unique market place for the public and private sectors to meet and discuss the broader industry issues, seek partners and listen to customers. 

From PR Web: "Julie Rios, Executive Director, Energy Initiatives, USPS will present an industry evaluation and report about the lessons learned from managing the largest alternative fuel vehicle fleet in the USA at the Miami Radisson Hotel, February 20-21, 2007. This keynote presentation will discuss the challenges and solutions to operating and maintaining a fleet of 37,000 alternative-fuel vehicles and evaluate the various kinds of alternative fuels, including biodiesel, electric vehicles and compressed natural gas and ethanol, which USPS utilizes within its fleet."

Coastweek has reported that "Postal Corporation of Kenya (PCK) has finalized distribution of over one million tourism stamps valued at Sh 25 million throughout its 500 outlets countrywide."

Postal News for December 21, 2006

As MediaBuyerPlanner has noted, "The Postal Accountability and Enhancement Act, which President Bush signed into law yesterday (Tuesday) resolves many issues of importance to direct mailers, while leaving some unanswered questions. Transparency and accountability within the USPS are the main areas that need work, according to Gene Del Polito, president of the Association for Postal Commerce, writes DM News."

The Association for Postal Commerce has filed jointly with the Mailing Fulfillment Service Association an initial brief in the matter of Docket No. R2006-1. A synopsis can be found on this site.

The Guernsey Press and Star has reported that "Guernsey Post intends to make savings of £1.2m. over the next three years to keep stamp prices to a minimum. The Office of Utility Regulation yesterday said that the cost of a local stamp would rise to 32p next year, with UK ones at 37p. Guernsey Post interim chief executive Steve Hannon said price rises were never welcome, but the island’s charges still remained among the cheapest for postage in Europe. ‘We have worked hard to improve our service, while pegging increases to RPI or below whenever possible,’ he said. Savings made would be passed on to customers through reduced price increases.

Take a look at the Postal Rate Commission website....It didn't take long to start changing some of the signs on the doors.

The government of Ecuador is soliciting proposals for a 15 year postal system concession. [In Spanish.]

The U.S. Postal Service is proposing changes to make its International Mail products easier to use. The changes will introduce the most familiar and trusted USPS domestic product names — First-Class Mail, Priority Mail and Express Mail — into the International product portfolio, making it easier for customers to mail cards, letters and packages worldwide. “Whether it’s a retailer shipping products to another country or an individual keeping in touch with loved ones, customers will be able to connect with their friends and relatives around the world through an array of International Mail product choices,” said Postmaster General John E. Potter. “Simplifying our International offerings by using the familiar domestic product names that people know and trust will give customers the ‘Quick, Easy, Convenient’ choices they need.” The proposal will reorganize eight International Mail products now offered at postal outlets and online at usps.com into four simplified groupings: Global Express Guaranteed, Express Mail International, Priority Mail International and First-Class Mail International."

According to DM News, "Dan Gregory Blair began his five-year term as chair of the Postal Rate Commission on Dec. 20. Mr. Blair replaces George Omas, the well-liked head of the PRC who was designated Chairman of the PRC by President Bush on Nov. 30, 2001."

As Steve Barr at the Washington Post has noted, "For almost 12 years, Rep. John M. McHugh (R-N.Y.) has championed legislation to overhaul the U.S. Postal Service. It has been a long and sometimes lonely journey. McHugh has worked to balance the competing interests of postal management, postal competitors, unions and companies, including Hallmark Cards, L.L. Bean and American Express, that rely on the post office. Yesterday, he was among a small group from Capitol Hill that saw President Bush sign the Postal Accountability and Enhancement Act, the first change to the Postal Service since President Richard M. Nixon agreed to replace the old Post Office Department with a self-sustaining government corporation."

As USA Today has noted, "The motto goes that "neither rain nor snow nor sleet nor hail" shall keep postal carriers from delivering the mail — but what if the snow comes amid a blizzard warning? Apparently, it doesn't matter."

According to the Western Catholic Reporter, "Canada Post has restored its contribution to a federal government postal subsidy to Canadian newspapers and magazines for the next two years. The restoration means that the WCR no longer faces an $80,000 increase in its costs for mailing the newspaper to its more than 35,000 subscribers."

MediaPost has reported that "e-mail played a less important role in the mid-term elections than in last year's presidential race, with just 12% of American adults receiving political messages in their inbox this year, compared with 15% in 2004. That's according to a new report by the Pew Internet & American Life Project. The organization, which surveyed 2,562 adults last month, also reported that registered Republicans were the most likely recipients of e-mail ads, with 16% reporting such messages, followed by Democrats (12%) and Independents (11%). While e-mail use appeared to dwindle this year, direct U.S. postal mailings increased. Sixty-one percent of respondents said they received snail mail from candidates, up from 49% two years ago."

The latest research paper in the E-substitution series, “Review of the Models on Price Elasticity of Postal Product” has just been uploaded onto www.postinsight.com Price elasticity estimates have long been part of volume forecasts. Measures are available for many postal administrations and for a range of postal products. This paper provides an overview of the main issues relevant for understanding how actual market conditions affect price elasticity. The paper looks at 45 studies that present price elasticity estimates for postal operators in six countries. The paper is the 22nd in a series of papers on E-substitution and the mailstream and was written by Allan Robinson, President of Direct Communications Group. Past papers in the E-substitution series can also be found on www.postinsight.com

Postal News for December 20, 2006

From left to right standing behind President George W. Bush:  PMG Jack Potter, Sen. Thomas Carper, Rep. Tom Davis; Sen. Susan Collins; Postal Board Chairman James Miller; Rep. Danny Davis; Rep. John McHugh.

See the President's statement on his signing the postal reform law.

From the U.S. Congress:

President Bush signed into law today historic postal reform legislation that would modernize the United States Postal Service and make it viable for the 21^st century.  The bill passed the House and Senate in the final hours of the 109^th Congress after key negotiators -- Sens. Susan Collins, R-ME, and Tom Carper, D-DE, and Reps. Tom Davis, R-VA, and Henry A. Waxman, D-CA -- brokered an agreement.  The legislation, the first major overhaul of the USPS since 1970, will help stabilize mail volume and stamp prices.

 

“The U.S. Postal Service is the lynchpin of a $900 billion mailing industry, providing nine million jobs nationwide in fields as diverse as direct mailing, printing, catalog companies, paper manufacturing, and financial services. But under its current business model, which has not been updated in decades, the financial future of the Postal Service is not viable,” said Senator Collins.  “The only way to avoid what the Government Accountability Office refers to as a ‘death spiral’ – of excessive and unpredictable rate increases which lead to further reductions in mail volume – is through the comprehensive reform that we accomplished here today.”

 

 “This legislation will help us avoid disastrous future postal rate hikes and put the Postal Service on firm financial footing for the 21^st century,” said Senator Carper. “The bill would give the Postal Service the tools it needs to survive at a time when more and more people communicate and do business through faxes, email and electronic bill-pay rather than hard-copy mail.  My thanks to Senator Collins and Congressmen Davis and Waxman for coming together to craft this compromise.  The legislation will go a long way toward making sure the Postal Service has the flexibility it needs to compete in the new economy.”

 

"This is the culmination of more than a decade of hard work and study, not to mention a great deal of bipartisan negotiation and cooperation," Government Reform Committee Chairman Tom Davis said. "The landmark legislation solves the structural, legal, and financial constraints that have brought the Postal Service to the brink of utter breakdown.  This compromise will reverse the 'death spiral' at the Postal Service and bring it into the 21^st century.  It's a huge win for everyone who uses stamps."

 

“My colleagues and I have been working for nearly a decade to reach a bipartisan, bicameral compromise on postal reform legislation,” said Rep. Waxman.  “This is a historic accomplishment and will help one of the most revered institutions in America survive and prosper in the electronic age.”

As the Associated Press has noted, "New postal reform legislation that passed Congress calls for the first major changes in decades on how the post office works. Few Americans are likely to notice the difference. While the measure affects the spending of billions of dollars, the mail will keep flowing, the letter carriers will keep making their rounds and the price of stamps, like just about everything else, will keep rising, but perhaps more slowly. The bill is scheduled for signing by President Bush on Wednesday. The public will notice little immediate impact, Postmaster General John Potter said in an interview."

Welcome to PostCom Radio Postal Podcast Number 6 Join PostCom President Gene Del Polito and PostCom General Counsel Ian Volner in a discussion of some of the key provisions of the new Postal Accountability and Enhancement Act (H.R. 6407)

From the PR Newswire: "R.R. Donnelley & Sons Company announced today that it has signed a definitive agreement to acquire Perry Judd's Holdings Incorporated, a privately-owned printer of magazines and catalogs, for a purchase price of $176 million, of which approximately $47 million is for the purchase of the company's common stock and the remainder is for the purchase of the company's preferred stock and the assumption of debt. RR Donnelley expects to repay the debt at or shortly following the closing. The all cash deal is expected to close in the first quarter of 2007. Headquartered in Waterloo, Wisconsin, Perry Judd's long- and short-run capabilities for producing consumer and business-to-business catalogs as well as consumer, trade, and association magazines will complement RR Donnelley's Publishing, Catalog and Retail Services platform."

From the U.S. Postal Service:

• President George W. Bush today signed into law new postal legislation that will benefit both residential and business customers by ensuring predictable price increases tied to the rate of inflation. The Postal Accountability and Enhancement Act is the first major change to the Postal Service since 1971. The law enables the organization to continue its transformation efforts and cost-cutting measures. “This new law could not have come at a better time. The Postal Service has never been stronger and this law enables us to build on our successes,” said Postmaster General John E. Potter who attended today’s White House signing ceremony. The Postal Service has ended a fourth consecutive year with positive retained earnings, a seventh consecutive year of improved productivity, and has benefited from record service and customer satisfaction scores that are independently measured.

• The Postal Service's audio news release in .mp3 format.

The News Journal has reported that "A city councilman blamed the U.S. Postal Service on Tuesday for the city having to make payments to residents whose property was destroyed. Second Ward Councilman Dave Robinson said the residents never received code violation notices."

As Reuters has noted, "Package delivery company FedEx Corp. reported higher quarterly earnings on Wednesday, citing rising revenue in its international, ground delivery and freight units. Shares of package delivery company FedEx Corp. dropped more than 3 percent before the bell on Wednesday as investors's took a dim view of the company's outlook."

From the PR Newswire: "Valassis and ADVO, Inc. have announced that the companies have amended the terms of their definitive merger agreement. Under the amended terms, Valassis will acquire all of the outstanding common shares of ADVO stock for $33 per share in cash, or an aggregate of approximately $1.2 billion (on a diluted basis), including approximately $125 million in existing ADVO long-term debt which Valassis expects to refinance. As part of the agreement, the companies have agreed to dismiss with prejudice their pending litigation in the Court of Chancery for New Castle County, Delaware."

Hunts Post has reported that "closure of little-used rural Post Offices should not be opposed, so long as villagers do not lose access to postal services, a watchdog believes. Postwatch East of England, which oversees postal services in Cambridgeshire, accepts that closures are inevitable to stem spiralling losses. The watchdog said it would be irresponsible to let the current succession of unplanned closures - often when a sub-postmaster retires or an associated retail business folds - continue."

The Postmaster General has announced the appointment of Megan Brennan as Vice President, Area Operations, Eastern Area (she replaces Al Lazaroff, the new Chief Postal Inspector) and Tim Haney as acting Vice President, Area Operations, Northeast Area..

Transport Intelligence has reported that "There is more worrying news from the US logistics market, indicating a slowdown in the US economy. Two major trucking companies, Yellow Roadway and USA Truck have both issued trading updates which warn of lower profits compared with the same time last year. In fact YRC Worldwide is now not talking about whether there will be a US slowdown, but the extent to which it will impact its business."

From the Federal Register: "The Postal Service is proposing a major redesign of its international products including changes in prices and mail classifications."

From the U.S. Postal Service: "In today's Federal Register we published for comment our proposal to simplify our international shipping options and make it easier for you to use our products for your international shipping needs. The changes align our international products with our well-known and trusted domestic products – Express Mail, Priority Mail, and First-Class Mail. The Federal Register notice is intended to provide you with the opportunity to comment on and make suggestions regarding the proposed changes. You have 30 days to make comments."

According to SiliconValley.com, "Of all the telephone text messages from the United States that Analiza Mostera receives in the Philippines, few can be more welcome than the ones that say, ``You will get your remittance.'' Developed by the Philippine wireless telecommunications giant Smart Communications, the system of using text messages to transfer cash now delivers at least $50 million a month to families in the Philippines, according to a report by Washington-based lender International Finance Corp. Much of that money is sent home by Filipino temporary contract workers in Hong Kong, Saudi Arabia, the United Kingdom and Singapore. But dozens of Bay Area Filipinos also use the service, which is quicker and cheaper than sending money through traditional international bank transfers or by Western Union."

The latest issue of eView from the National Association of Major Mail Users (Canada)  has been posted on this site. We thank NAMMU for the privilege and the courtesy.

Postal News for December 19, 2006

The Postal Rate Commission (PRC) has issued its "Advisory Opinion Concerning A Proposed Change In The Nature of Postal Services" (END) (Docket No. N2006-1). In it the PRC said:

"The United States Postal Service proposes a program — which it has designated the Evolutionary Network Development (END) strategy — to review and realign its mail processing and transportation networks for the purpose of adapting them to the current and anticipated future needs of the nation’s postal system. The program’s objectives include enhancement of operational flexibility and efficiency, capture of resulting cost savings, and preservation of current service standards. The Commission finds these goals to be fully consistent with the policies and criteria of the Postal Reorganization Act, and endorses them.

"The Commission has carefully considered the evidence presented by the Postal Service to explain how END is designed to achieve these goals, as well as the contributions of other participants in this proceeding. The Presiding Officer solicited supplemental evidence from the Postal Service through eight detailed information requests in order to further elucidate this program. The Commission finds that the resulting evidentiary record does not provide assurance that the proposed realignment program, as currently envisaged, will meet its declared goals. In particular, the record reflects flawed or absent information on certain crucial aspects of the Postal Service’s plan for network realignment. The Commission advises the Governors to obtain and integrate reliable information in these areas before proceeding with full implementation of the contemplated program."

  According to Marketing Sherpa, "President Bush is expected to sign the postal reform bill tomorrow. Because of this, marketers can look forward to smaller postage rate increases from the U.S. Postal Service in the coming years."

There's been a changing of the guard at the PRC. George Omas' farewell to his colleagues and staff has been posted on this site. Now, George wouldn't say this, so we will. We'll miss you, George. Under your tenure, we saw the Commission move quickly to approve rates under unanimous consent agreements. We saw the Commission open its minds and its doors to make negotiated service agreements possible. And we enjoyed the friendship of a gentleman, who brought dignity to his office. You may be gone from the PRC, but we know we'll be seein' you around.

UNI-Africa has reported that "African postal administrations have been urged to embrace new strategies to make post offices autonomous and profitable. Tanzania's minister of Labour, Employment and Youth, John Chiligati, told delegates attending the ILO/UPU tripartite seminar on Social Dialogue in the Postal Sector from 27-29 November in Bagamoyo, Tanzania that postal administrations should adopt new technological changes to sustain jobs."

MediaDailyNews has reported that "In a move that is part of a bigger trend suppressing the flow of public data about advertising sales results, the Radio Advertising Bureau Monday said it would discontinue reporting national and local radio advertising sales estimates on a monthly basis, and would begin reporting them quarterly effective with 2007. The change follows moves by the broadcast networks to discontinue reporting quarterly figures at all, and follows a post Sarbanes Oxley passage that has led to the suppression of other important advertising financial metrics by publicly traded companies, including estimated advertising billings by major ad agencies."

Lockheed Martin has completed the deployment of 74 Automated Package Processing Systems (APPS) to the U.S. Postal Service under a more than $300 million contract awarded in 2002. APPS provides the Postal Service with a fully integrated, end-to-end system capable of automatically sorting high volumes of First-Class packaged mail, Priority Mail envelopes and parcels, and bundled mail, such as magazines or catalogs, with greater efficiency and higher accuracy. The system is capable of processing more than 9,500 packages an hour while automatically reading machine printed or handwritten addresses.

According to Die Welt, "The planned merger of German national postal services provider Deutsche Post's mail and parcel dispatch divisions is expected to cost jobs, although there is uncertainty as to how many, with estimates ranging from 1,000 jobs to up 3,000 jobs."

The Financial Times has reported that "Royal Mail, the government-owned postal service, is to have its home telephone service investigated by regulators over allegations of mis-selling."

From Business Wire: "HP has been awarded a five-year contract extension by the United States Postal Service to deploy a breadth of products and services, including HP servers, desktops, notebooks, printers, and integration and warranty support services. This indefinite-delivery, indefinite-quantity contract that dates back to 1994 builds upon a long-term mutually successful relationship. HP has delivered more than $1.8 billion worth of products and services to the Postal Service from 1994-2006."

Gulf Times has reported that "Qatar and China would soon explore the possibility of enhancing co-operation between the two countries in the postal sector, a Q-Post communique said yesterday. This was decided after a meeting between the Chinese Ambassador to Qatar Li Jian Ying and Chairman of Q-Post Ali Mohamed al-Ali yesterday at the latter’s office."

The signing ceremony for the Postal Accountability and Enhancement Act at the White House will be tomorrow. Among those present will be PostCom Chairman Jim O'Brien.

Postal News for December 18, 2006

Check Out This RPF Proposed U.S. postal reform legislation will bring about significant changes to the USPS rates (classification, incentives, discounts, fees) and structure (facilities, sorting equipment, work sharing).  Postal reform will cause volume to migrate between end-use segments as well as promote a shift to electronic media. This will impact print demand and mailing preparation processes which will undoubtedly impact all firms in the print value chain. This study will evaluate the effects of U.S. postal reform and potential postage increases on the demand for print in the next three years.  It will evaluate the impact on various print markets and products produced such as periodicals, direct mail, catalogs, and financial/transactional printing. This study would identify the ‘trickle down’ effect postal changes have on the complete value chain of the printing industry. The study should also look at similar efforts taking place in Canada.

Geek.com has asked: "Looking for some superGeeky tech to wow your friends and family with this holiday season? How about using QR codes and a Windows Mobile QR code reader to code your Christmas gifts and remember what you have inside them? QR codes are apparently popular in Japan, but you can generate your own code for URLs, text, phone numbers, and SMS. Here is the QR code for Geek.com:



What other uses can you think of for the QR code?" [Joe Lubenow....This one's for you.]

TMCNet has reported that "AT&T just inked a year-long contract reportedly valued at $12 million which renews a partnership between the telecom and the United States Postal Service to provide local voice and networking services to 9,000 of the agency’s offices across a 13-state region. The project will be managed by AT&T’s Government Solutions unit."

Computer Weekly has reported that "IBM has announced new technology that more easily allows organisations securely share and analyse real-time data generated by radio frequency identification (RFID) tags."

Printing News has reported that "Despite rising postal rates, higher raw materials costs and the advent of numerous alternative channels, marketers continue to seek out the return on investment benefits of direct mail. spending $60.6 billion on the channel in 2006 - according to a white paper released today by Winterberry Group, a leading strategic consulting firm serving the marketing industry. The white paper, entitled Vertical Market Trends in Direct Mail and the Impact on Production Service Providers 2006, is the New York-based consulting firm’s third annual study of the direct mail production sector. Based upon feedback provided through hundreds of interviews with executives from throughout the direct mail industry, it explores macro trends affecting mailers and service providers, as well as unique developments specific to one or more vertical markets."

Reuters has reported that "Package delivery company FedEx Corp. said on Monday it has acquired express transportation company ANC Holdings Ltd. for $234 million (120 million pounds). The deal will allow FedEx Express, the express delivery unit of Memphis-based FedEx, to directly serve the British domestic market."

BtoB magazine has reported that "Direct mail is more effective than online marketing, according to Philadelphia-area marketing executives polled at a recent seminar hosted by W.A. Wilde Co., a direct marketing fulfillment company. When asked to name the most successful marketing tool used this year, 50% of the survey respondents cited traditional mail; Web-related marketing was cited as the second most successful, and e-mail marketing was ranked third. In addition, close to 50% of those surveyed said they plan to increase their marketing budgets next year."

As Steve Brock of the Envelope Manufacturers Association Foundation has noted, "Though business communications are constantly evolving to address what is newest, easiest and cheapest, the envelope and the mailstream continue to remain an unshakable pillar of commerce in the United States. The Envelope Manufacturers Association (EMA) Foundation has launched the “Open for Business” campaign. This fact-finding effort is aimed at discovering how major businesses use the envelope to reach out to different audiences, and how the paper-based communications industry can adjust to better compete with new media options."

Federal Business Opportunities has noted that "The U.S. Postal Service is conducting market research to identify companies with an interest and capability to provide a mail stowage and retrieval system for its delivery fleet of Long-Life Vehicles (LLV). This will be done in conjunction with implementation of a new Flats Sequencing System (FSS) program whereby large envelopes, magazines, catalogs and circulars will be sorted for letter carriers who must now manually sequence the mail before leaving the office for their routes. As the FSS program is implemented, the plan is to purchase mail stowage and retrieval systems for up to 18,000 LLVs. Deployment would start July 2008 with delivery completed by July 2010."

Forbes has reported that "UK postal service Royal Mail on Monday announced stamp price increases under a new pricing regime reflecting the size, as well as the weight, of letters. The state-owned postal group said the price of a first class stamp for a standard-sized letter weighing up to 100 grams will rise by 2 pence to 34 p from April 2 next year. The price of a large-sized 100 g letter will rise by 4 p to 48 p."

Stuff.co.uk has reported that "Freightways' DX Mail is buying the Pete's Post franchisor rights, effective from December 21. The purchase is expected to produce earnings before interest, tax, depreciation and amortisation of about $500,000 over the next year. "This acquisition is consistent with DX Mail's growth strategy to further develop its nationwide postal business," Freightways managing director Dean Bracewell said. The Pete's Post mail delivery business operates through franchises in Taranaki, Manawatu, Wanganui, Hawke's Bay and Bay of Plenty."

While everyone's running around giving high-fives over the passage of reform, let's not forget how the whole process began. Congressional Quarterly has published a nice piece that chronicles postal reform's legislative roots.

DM News has aptly noted that "If anything, the 109th Congress will be remembered for a rare act of bipartisanship in its waning hours: passing historic postal reform legislation to modernize the U.S. Postal Service and help its customers - the nation’s mailers, big and small, as well as consumers."

The Associated Press has noted that "When 2007 arrives, it will bring increases in rates at Fed-Ex Corp. and United Parcel Service Inc. and a possible jump in postal rates. Savvy small-business owners already know how they will deal with the escalating mailing and shipping costs."

China Post has reported that "The Sagawa Express Co. group, a Japanese delivery company, announced Monday that it has signed an agreement with a subsidiary of China Post to launch a parcel delivery service covering the entire Chinese market."

Postal News for December 17, 2006

The BBC has reported that "Christmas deliveries of mail are set to be affected after 800 postal workers in 11 delivery offices in Staffordshire went on strike. The action, set to continue on Monday, is over changing posts from full-time to part-time when they become vacant. Unions claim the changes breach a national agreement, which is denied by Royal Mail who said they were only made with the agreement of staff."

Kuwait Times has reported that "The Ministry of Telecommunications recently announced that all post offices would start working two shifts by January, reported Al-Watan. The ministry also noted that its plans include opening 18 new post offices, said the assistant undersecretary for postal affairs, Fahdel Abul Hassan adding that postal services would be privatised by January."

Auctionbytes.com has noted that "eBay Sellers are asking about forthcoming USPS shipping changes."

The Atlanta Business Journal has reported that "United Parcel Service Inc. has reached a labor agreement with the Greater Louisville Building and Construction Trades Council and local unions related to construction work on UPS' $1 billion expansion of the Worldport hub in Louisville, Ky. The agreement includes work rules for all construction activities and ensures that current operations at the hub are not disrupted."

Ahmedabad Newsline has reported that "To cut losses and increase its reach, the Department of Posts has recently unveiled plans for franchising postal services. For this, the Department will soon launch a pilot project in 100 cities across India. The franchises will be tested for financial viability, i.e., whether they can be self-supporting if not profit-generating, without affecting the Department’s existing network."

Postal News for December 16, 2006

The Yorkshire Press has reported that "dozens of Royal Mail workers walked out of the firm's York depot in protest at the suspension of a van driver. About 30 collection drivers and some other staff staged the wildcat strike at the firm's Leeman Road base, at about 3.10pm yesterday, to support their work-mate. The three-hour stoppage caused disruption to parcel collections from post offices and Royal Mail's business customers."

According to Liberation.fr, "the reserved field constitutes the best compromise between the objective of construction of the postal domestic market and a robust and perennial financing of the universal service."

The latest copy of the National Association of Postmasters of the U.S. electronic governmental affairs newsletter is available on the NAPUS web site.

American Postal Workers Union William Burrus told his members that "the APWU position in the 2006 contract negotiations was that we stand on the product that we produce in the negotiations process, without regard to what may or may not be achieved with the other postal unions. Unfortunately, some other postal unions do not adhere to these principles and routinely wait for the results of APWU bargaining to determine whether they can include in their contract those improvements we have achieved....This “me too” model of bargaining is not reflective of a union that can stand on its own efforts, but rather of an organization that resorts to waiting to see what others have achieved. At the very least, practitioners of “me too” bargaining owe APWU a public thank you for blazing trails and permitting them to provide improvements to their membership."

Agenzia Giornalistica Italia has reported that "For the fourth consecutive year, Poste Italiane SPA closes its financial year with a positive result and now, for the first time, in accordance with International Financial Recording Standards, the report on the examination by the Audits Court showed in relation to the financial management of Poste Italiane SPA, for the year 2005, in which government authorities are invited to make a careful evaluation of the implications linked to the liberalisation of the postal sector, in order to let the results of such reflections count before the competent European organisation." [That is one hummer of a run-on sentence. Let's hope it's the translation.]

As the St. Paul Pioneer Press has noted, "of the 383 pieces of legislation signed into law during the 109th Congress, a fourth of them were bills naming buildings, particularly post offices."

You can find posted on the U.S. Postal Service Office of Inspector General website the OIG's latest report concerning "Postal Service Officers' Travel and Representation Expenses for Fiscal Year 2006" (http://www.uspsoig.gov/FOIA_files/FT-AR-07-005.pdf). If you have additional questions concerning the report, please contact Agapi Doulaveris at 703.248.2286.

Postal News for December 15, 2006

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

• How does the new postal reform legislation affect the current rate case? What does it mean to mailers? Will there be one more rate case? When does the bill take effect? Read on for answers to these and other questions.

• Direct marketing consultant Don Libey predicts 2007 will mark the beginning of a sea change for catalogs. Photography, space, copy and message will undergo major transformations resulting in catalogs that will look very different from those of today.

• Analyst Chrystal Szeto examines the greeting card and postcard market as yet another potential form of electronic substitution for mail in this series of occasional papers for a Pitney Bowes research project.

• USPS, NPMHU reach tentative contract agreement. Lazaroff to lead Postal Inspection Service. Must be New Year’s; shipping prices going up. UPS offers voluntary separation package to 650 workers. FedEx, UPS CEOs team on energy action. DHL can increase Polar Air shareholding.

• Canadian postal workers lose NAFTA appeal. Royal Mail to axe 2,500 post offices. Opposition still brewing to EU 2009 postal liberalization. German postal union plans protest strikes. Austrian Post, union strike wage deal. Swiss Post gets agreement on pension funds. Australia Post’s public service act criticized.

• A list of upcoming postal-related events.

Hey! You've not been getting the weekly PostCom Bulletin--the best postal newsletter anywhere...bar none?  Send us by email your name, company, company title, postal and email address. Get a chance to see what you've been missing.
 

Who handles the distribution of the PostCom Bulletin?
 Why, it's NETGRAM, of course. Read more about it.

The Guardian has reported that "The government yesterday unveiled plans to close 2,500 rural and urban post offices over 18 months - the fastest closure programme in the history of the network. The cuts, which are expected to start next summer after national and local consultations, will slash the network to about 11,700 branches, fewer than half the peak of 25,000 in the 1960s. They came after widespread opposition, with a petition containing 4 million signatures presented to the prime minister in October."

Network World has reported that "The U.S. Postal Service has quietly terminated an 18-year, multibillion-dollar network services contract with Lockheed Martin that was to provide all of its data, voice, video and wireless services. Dubbed Universal Computing Connectivity (UCC), the contract was awarded to Lockheed Martin with much fanfare in October 2004. UCC had an estimated value of between $3 billion and $6 billion. USPS terminated the UCC contract in July 2006. Here’s all USPS will say about its change of heart: “Due to changing business objectives/conditions, USPS and LM have agreed that the UCC contract cancellation is in their mutual best interests, and that it will not preclude the two parties from entering into other contracts in the future.” Lockheed Martin has no comment on the UCC contract cancellation."

Navy Times has reported that "The Military Postal Service Agency and the U.S. Postal Service awarded a new contract for military mail this year, “greatly improving mail delivery to these areas where previous arrangements left mail-delivery frequency up to the discretion of the air carrier,” said Lt. Col. Kevin Arata, Army Human Resources Command spokesman."

From the U.S. Postal Service: "We’ve been asked if the recently passed Postal Reform legislation will have any effect on the current proposed pricing change. It will not. We are still on target for a May 2007 implementation of new prices and mailing standards. We’ll have our revised mailing standards Federal Register published in early January 2007.

DigiStamp has withdrawn the complaint it had filed with the Postal Rate Commission.

FinFacts has reported that "The Commission for Communications Regulation (ComReg) has today launched a public consultation following An Post’s recent application for an interim price increase in the price of the basic stamp. ComReg is the National Regulatory Authority for the postal sector in Ireland and its prior approval is required for postal rate changes in the reserved area."

From Postalnewsblog.com: "BroadRamp Inc. today announced they have been awarded a contract with the United States Postal Service (USPS) to provide encoding, hosting, and streaming services on the USPS.com website utilizing BroadRamp’s innovative CDS™ content delivery platform. The effort is part of a comprehensive strategy intended to attract a larger audience to USPS’s increasing number of online services and engage a demographic that may not be familiar with Postal Service products and services."

PostCom Members: Posted on this site is a list of "frequently asked questions" on the new postal reform bill. Still not a PostCom member? You should really see what you've been missing.

Ralph Nader’s Center for Study of Responsive Law has released a new book on the U.S. Postal Service (USPS). Preserving the People’s Post Office by Christopher W. Shaw exposes how numerous forces are intent on undermining an essential government agency’s public service commitment. “The book demonstrates the crucial importance of the Postal Service’s historic role as the one universal means of communication,” said Consumer Advocate Ralph Nader. “The Postal Service also fulfills other functions vital to our society,” Nader added. Christopher Shaw the book’s author said, “Through preferential postage rates for nonprofits the Postal Service facilitates civic involvement and a healthy democracy.” Nader also noted, “Postal employees are fairly remunerated in an increasingly low-wage, low benefit ‘Wal-Mart’ economy.” According to Nader, “Post offices serve as the heart of community life in neighborhoods and towns nationwide and the presence of postal workers on community streets make them safer, as the many beneficiaries of their frequently heroic efforts attest.” “The lack of citizen-consumers’ involvement in the recently passed postal reform legislation has highlighted the need for a public dialogue about the future of our postal system. The book provides a starting point for that conversation,” stated Nader. [A day late and a dollar short....]

According to the Financial Times, "The Post Office risks losing a £200m-a-year government contract to offer basic banking services, ministers ad-mitted yesterday, as they unveiled a five-year rescue plan for the ailing network. Despite committing £1.7bn of taxpayers' money, the government said the estimates of losses were only "fluid".

Mosnews.com has reported that "Russian Post has started delivering 4.5 tonnes of letters and parcels that were sent from the United States in 1999, Reuters news agency reports. The state-owned postal service said the delay was not its fault — a shipping container with the mail inside had languished at a port in Finland for years. The container finally reached Russia on December 8. “The loss of mail usually happens because of force majeure circumstances, such as natural disasters, traffic and other accidents,” Russian Post told Reuters via e-mail. “All of the mail has been very well preserved because the container was hermetically sealed.”

According to Network World, "The United States Postal Service is promoting its online Click-N-Ship service by sending spam to customers -- in apparent violation of its loophole-ridden privacy policy and certainly the spirit of federal law -- according to a pair of longtime anti-spam activists who say they themselves have received the unsolicited e-mail."

The Evening Standard has reported that "Labour 'sounded the death knell' for the Post Office network with plans to axe 2,500 branches over the next two years. It means the Government will have shut nearly 40 per cent of Britain's Post Offices since it came to power in 1997."

Union Network International has reported that "the Botswana Postal Services Workers' Union (BPSWU) has expressed concern over the limiting of freedom of association by Botswana Post management.

According to the Budapest Business Journal, "In postal market deregulation, the government aims to improve services, minimise layoffs."

PostCom Members: Posted on this site you can find a chart showing the percentage rate changes over rate cases from R90-1 to R2005-1.

The Center for Media Research has reported that "American Business Media (ABM, the association of business information providers, recently released data on September year-to-date print ad pages showing that pages and revenue have seen stable performance through 2006, with an increase of 1.11% and .9%, respectively."

Transport Intelligence has reported that "UPS has for the second time in six months announced a substantial number of redundancies in its Supply Chain Services business. In a brief statement released at the beginning of the week it stated that it had created a "special voluntary separation opportunity to approximately 650 employees as part of the company's ongoing effort to eliminate redundant positions". This is apparently aimed at workers over fifty with longer work records at the company. These redundancies are in addition to the 1200 job losses announced at SCS in October."

Postalnews.com has posted a link to a summary of the tentative agreement between the USPS and the Mail Handlers Union.

OpEdNews has reported that "According to CNN, there were more than 15,000 anthrax hoaxes between September 2001 and August 2002. Previously, the Center for Nonproliferation Studies counted more than 400 anthrax hoaxes between 1998 and September 2001. In late 1998, the Centers for Disease Control and Prevention (CDC) reported seven anthrax threats; another thirty-five threats were made during February 1999. A subsequent article in the Bulletin of the Atomic Scientists (July/ August 1999) suggested anthrax hoaxes were fast replacing telephoned bomb threats as the favorite sport of the disturbed, the disgruntled, and the just plain stupid."

The Financial Times has reported that "Fred Smith, chief executive of FedEx, joined forces yesterday with rival Michael Eskew of UPS in a bid to "break the longstanding energy policy stalemate" in Washington. The two met White House officials and Congress members to lobby for an "aggressive campaign" to increase US energy security, Mr Smith said."

New Straits Times has reported that "The export parcel centre at the Kuala Lumpur International Airport (KLIA) has been seizing about 300 parcels of pirated DVDs and VCDs every day."

The Guardian has reported that "The government yesterday unveiled plans to close 2,500 rural and urban post offices over 18 months - the fastest closure programme in the history of the network. The cuts, which are expected to start next summer after national and local consultations, will slash the network to about 11,700 branches, fewer than half the peak of 25,000 in the 1960s. They came after widespread opposition, with a petition containing 4 million signatures presented to the prime minister in October."

According to the BBC, "Campaigners fear for rural communities, businesses and the vulnerable Small businesses have reacted angrily to the government's plans to shut 2,500 post offices due to rising losses."

According to Mad.co.uk, "Postal regulator Postcomm is probing Royal Mail's compensation schemes for loss, damage and delay - including compensation to bulk mail customers - following criticism that they are difficult to understand."

Postal News for December 14, 2006

PostCom Members: A latest PostCom Postal Issues Brief on the Postal Accountability and Enhancement Act has been posted on this site. Be sure to download a copy for use with your company colleagues and executives.

BizJournal.com has reported that "Shares of online DVD rental service Netflix Inc. dropped 71 cents Thursday after discouraging words from an analyst. An analyst has said that while Netflix is still the leading online movie rental service, ahead of rival Blockbuster Inc., he believes "the $40 million earmarked for 2007 could prove insufficient" and other costs could rise as the company ups its marketing and as postal rates increase.

The Anchorage Daily News has reported that "The federal law on air mail and passenger services to Alaska villages has been rewritten again, this time with congressional passage of a postal reform bill. The revision will relieve air carriers that fly smaller planes of a looming deadline to buy mid-size aircraft and to submit to greater federal inspection if they want to carry bypass mail."

Politics.co.uk has reported that "Postwatch, the independent watchdog for postal services, has said the Post Office network cannot sustain current levels of financial losses and closures are inevitable."

Reuters has reported that "Russian Post has started delivering 4.5 tonnes of letters and parcels that were sent from the United States in 1999. The state-owned postal service said the delay was not its fault -- a shipping container with the mail inside had languished at a port in Finland for years. The container finally reached Russia on December 8."

Postmaster General John E. Potter has appointed Alexander Lazaroff, vice president of Eastern Area Operations, to serve as Chief Postal Inspector of the United States Postal Inspection Service. Lazaroff, who becomes the 36th Chief Postal Inspector, will assume his new duties following the retirement of current Chief Postal Inspector Lee R. Heath at the end of this year.

The U.S. Postal Service offers Dinero Seguro (USPS.com/money/suremoney), providing customers with an affordable, convenient and safe method of transferring money internationally. Customers can send up to $2,000 per transaction per day, available at 2,800 participating Post Offices across the U.S. Identification is required for transfers exceeding $1,000.

The News Journal has reported that "The catchphrase "snail mail" -- shorthand for the U.S. Postal Service -- sums up its stiff competition from electronic communications and commercial couriers. For centuries the government service has provided universal mail and package delivery, yet these days its customers can comparison shop for price, speed and convenience. The Postal Service has to respond to survive, and finally Congress has passed operational changes to help its bottom line. Most notably, it should bring predictability and flexibility to rate increases by connecting prices to inflation over the next 10 years. That matters to mass mailers like Delaware's banks, magazine publishers and product distributors. The overhaul also gets rid of outdated financial obligations, such as an excessive escrow fund, freeing up $3 billion annually at the Postal Service. This money is expected to be applied to keep down rates, prepay toward employees' retirement and health benefits, and eventual capital improvements." See also the Federal Times.

The Telegraph has reported that "Around 2,500 post offices are expected to close because of increasing losses and fewer people using the network, Alistair Darling, the Trade and Industry Secretary, has announced. Post offices 'face a long-term challenge' The cutback was blamed on mounting losses and fewer people using the network of 14,263 offices. Mr Darling said there had to be a reduction in the size of the network to reflect the dip in business and losses of £4 million a week, up from £2 million a year ago."

VNUNet has noted that "Demand for passive radio frequency identification (RFID) labels, particularly UHF labels, is being stymied by a vicious circle of high unit costs that can only be reduced if production volumes increase."

From CNW Telbec: "Magazines Canada welcomes the federal government's decision to safeguard the Publications Assistance Program by directing Canada Post to continue funding the program for the next two years. As a cornerstone of Canada's magazine policy, the PAP is a market-driven program that ensures that Canadians have access to Canadian-content magazines at affordable rates no matter where they live in Canada. It also addresses the significant challenges of distributing subscription-based magazines to individual addresses across Canada's huge landmass at an affordable price."

According to InTheNews.co.uk, "The future of 14,500 post offices nationwide will be announced by the government today." See also the BBC.

DM News has reported that:

• DHL is switching from a product-centric database model to a customer-centric one.

• There are vested interests on both sides of the debate. Printers, paper manufacturers and the U.S. Postal Service see the paper catalog as being invincible. Internet service providers, search firms and the Internet industry see the catalog as a relic of the pre-online era. 

Transport Intelligence has reported that:

• Deutsche Post World Net has held its latest Capital Markets day for analysts giving an insight into the latest developments and strategic focus of DHL's Logistics division. John Allen, who previously headed up Exel and is now CEO of DHL Logistics, chaired the meeting. One of the main themes of the meeting was that DHL had reached the second part of a three stage process. The first stage had been to 'build a global leader' which took place between 2000 and 2005. The second, to go from being the 'biggest to the best' is slated to be completed by 2010.

• DHL has announced what it calls 'significant progress' on its Route Optimization Initiative, a component of a programme announced earlier this year to enhance courier pick up and delivery efficiency. To date, DHL has improved pickup service, while decreasing vehicle usage and fuel consumption.

As the Bangor Daily News put it: "Three years after repeated previous failures to reform the $70 billion U.S. Postal Service, Sen. Susan Collins can claim victory on major legislation almost no one has heard of but that will affect nearly everyone. Her bill steers the Postal Service toward a more competitive, more stable future."

The San Jose Mercury News has reported that "When 2007 arrives, it will bring increases in rates at FedEx Corp. and United Parcel Service Inc. and a possible jump in postal rates. Savvy small business owners already know how they'll deal with their escalating mailing and shipping costs."

680News Radio has reported that "The Conservative government is ordering Canada Post to continue rural mail delivery and maintain a fund that subsidizes postage for Canadian magazines." See also Canada.com and CNN Matthews.

A copy of the presentation given to the Postal Rate Commission by Murray Buchanan, Head of International Policy and Deputy Director, Royal Mail on the “3rd European Postal Directive” has been posted on the PRC web site..

From Bolsamania: "SOLYSTIC, a subsidiary of Northrop Grumman and one of the main industrial players in postal automation, announced today the signature of two important contracts with La Poste (France) and the Royal Mail (England). As part of these contracts, SOLYSTIC will provide and install 40 TOP2000 high-performance machines, for the sorting of oversize mail. Each of these state-of-the-art machines will be capable of automatically sorting 38,000 flat objects an hour. Automation of postal sorting is a central issue for postal operators looking to 2009, the year when the European postal market is to be fully liberalised."

CBS2Chicago has reported that "Twins Eric and Evan Gilmore wrote out their letters to Santa Claus last week. Grandma put stamps on the letters and mailed them, as she has in years before -- To Santa: North Pole. However, grandma Nancy Teafoe was surprised when 4-year-old Eric's letter was returned Monday with the notation "Return to Sender, Insufficient Address, Unable to Forward."

According to the Financial Times, "If ever a business were crying out for privatisation, it is Royal Mail Group. The government’s dim-witted method of reforming the postal market has been to open it to competition while retaining ownership of the domi