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Postal News from March 2007:

March 31, 2007

The Wall Street Journal has reported that "The U.S. productivity boom that began in the mid-1990s is showing signs of running out of steam. If it proves more than a temporary lull, slower growth in productivity -- that is, output per hour worked -- could lead to slower growth in living standards, more difficultly paying for the baby boomers' retirements and a greater risk of inflation. Inflation fears would make the Federal Reserve more reluctant to lower interest rates."

WDSU has reported that "The U.S. Postal Service is studying the possibility of moving regional mail sorting operations from Mandeville and Slidell to New Orleans -- a change some postal employees said will inconvenience the public by delaying mail delivery on the Northshore. Postal Service spokesman Dave Lewin said approval might take as long as six months."

Greenwich Time has reported that "RedRoller Inc., operator of the redroller.com Web site, where users can compare package shipping costs, laid off an unspecified number of employees this week as its growth plans stumbled."

The Seattle Post-Intelligencer has reported that "Private carriers worry mail Postal Service union....Right now, private carriers -- technically termed highway contractors -- serve mostly rural areas in the state. Across the state, almost 100 areas are serviced by highway contract routes -- everywhere from Acme to Winthrop. But a nearly decade-old rewrite of a national Postal Service bylaw made it easier to contract out both rural and city routes."

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March 30, 2007

As the Advertising Specialty Institute has noted, "With UPS Delivery Intercept, a shipper can use a UPS package application such as UPS WorldShip, UPS CampusShip or UPS Internet Shipping, click on the 1Z tracking number and request a reroute. Interception requests also can be made through a shipper’s myups.com account as well as via UPS Signature Tracking."

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

Equimedia has reported that "Falling volumes despite a continued consumer engagement with direct mail could be attributed to a shift to online direct marketing. The Royal Mail study revealed a rise in direct mail targeting the 55- to 64-year-old age group - traditionally a less web-savvy demographic. But a recent report from Axa found that so-called silver surfers are on the increase, something that can´t have escaped the online direct marketing community. The survey revealed that 41 per cent of retired people preferred surfing the internet to other more traditional hobbies such as gardening and DIY."

Reuters has reported that "Authorities in southern Sudan and Khartoum have signed an agreement that will allow the southern capital of Juba to receive mail directly for the first time, officials said on Friday. Currently letters headed for the south have to pass through northern Sudan. "The Sudan postal service has accepted that we should have our own gateway," said Francis Apaya Elia, the south's director of postal services. The agreement also meant the south can produce its own stamps, Along said. Elia said the national postal service would now apply to the International Postal Union (IPU) for permission to make Juba a postal gateway."

Traffic World has reported that "Deutsche Post World Net has opened the DHL Innovation Center in Troisdorf near Bonn, Germany. The center will serve as a laboratory for developing new, marketable products keyed to future logistics trends. The company is cooperating in research with IBM, Intel, SAP, and the logistics institutes at the Massachusetts Institute of Technology and the German Fraunhofer institutes."

From Business Wire: "Pitney Bowes Inc., the mailstream technology company, has launched a website to guide mail operators and marketers through the newly-announced US Postal Service rate changes. Located at www.pbpostalinfo.com and at www.PitneyBowes.com, Pitney Bowes offers the tools, terms and tips that reduce costs and maximize opportunities in the new postal rate environment.

As DM News postal commentator Cary Baer has noted, "The Governors of the U.S. Postal Service have approved the Postal Regulatory Commission's proposed 7.6 percent average rate increase. The PRC's recommendation was one of its first acts under its new mandate. However, the rate increase has the possibility of doing permanent damage to commercial postal users and therefore the U.S. Postal Service itself. The commissioners and their staff just don’t understand the damage they may have done to the postal service and the direct mail industry."

The Associated Press has reported that "Motorists in several states, including Missouri, are suing a company that sends advertising in vehicle registration notices, saying it violates a federal law that protects their personal information."

The Postal Service's final rule regarding the imiplementation of R2006 rates has been published in the Federal Register.

The Postal Regulatory Commission has posted on its web site its "Notice Of Request For Reconsideration And Order Establishing Procedures." In this order, it establishes procedures affording participants (and other interested parties) an opportunity to provide their views on each of the issues on which reconsideration is sought. Participants should address each issue separately since the substance of each issue differs. Initial comments are due April 12, 2007; reply comments may be filed not later than April 19, 2007."

Check it out: "Introduction to DM News' Essential Guide to postal news, Deliver."

March 29, 2007

As PrintWeek has noted, "Royal Mail is to meet more resistance over its pricing proposals, this time over its charges to rivals for ‘final mile' delivery. In a move that could dramatically affect costs for direct mail and mailing houses. The postal giant wants Postcomm to allow it to raise the current 13p charge to competitors to deliver its post. This comes hot on the heels of its proposal earlier this month to introduce zonal charging. The ‘final mile’ proposal is in response to the postal regulator’s recently announced 2006-2010 price and service review, which is likely to take six months."

Gulf News has reported that "Q-POST yesterday signed a contract with a local firm for setting up point of sale (PoS) terminals and vending machines at the premises of its 30 odd branches throughout Qatar."

The Brenham Banner Press has reported that "The Postal Service is again soliciting local businesses about operating a contract postal unit (CPU) here."

Air Cargo World has reported that "While passenger growth continues unabated, international air freight traffic growth slowed in February, the International Air Transport Association reported. "The relatively weak level of growth seen in the second half of 2006 has continued into the start of 2007," said IATA, despite the relatively strong global economy and trade. High fuel costs and competition from other transportation modes, trucks specifically, stymied growth in February in shorthaul markets in both North America and Europe. North American airlines saw freight volumes decline by 0.5 percent in February compared to economic growth of 6 percent in 2006."

March 28, 2007

The U.S. Postal Service has filed with the Postal Regulatory Commission its "initial statement on reconsideration" of the flats rates recommended by the Commission.

For an excellent exposition on the future of advertising in an age of consumer choice, take a look at the article entitled "The Chaos Scenario 2.0" published in Advertising Age.

Computerworld has reported that "For the second straight year, American Express Co. is the top-rated company in the U.S. for privacy based on responses from more than 7,000 participants in an online survey conducted by Ponemon Institute LLC, an Elk Rapids, Mich. privacy think tank. The remaining companies in the top 10 list this year are AOL LLC, followed by Amazon.com Inc., Johnson & Johnson, the U.S. Postal Service, eBay Inc., The Procter & Gamble Co. and Nationwide Investment Services Corp. -- which were tied for ninth place -- and Google Inc.

The Association for Postal Commerce congratulates those PostCom members that were recognized for excellence at the National Postal Forum:

The March 2007 issue of the Universal Postal Union's Direct Mail Advisory Board Update has been posted on this site.

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

The opening up of the Swedish market proved to the critics of liberalisation that a change of this nature need not necessarily imply the demise of the post office and the end of the universal service. The Swedish PostenAB still exists and is in better financial health than ever, and the universal service in the rural areas of the North has never been in jeopardy.[This is an excellent and lengthy story. Contact CEP News for a full copy.]
"The range of services that is available to the paying recipient is being expanded" - in the words of the Danish post office.
Schweizerische Post has ended the 2006 financial year with a turnover figure that is up by 5.3 percent, to 4.87 billion Euro.
In Switzerland, customers of the post office must bear the cost of a lack of competition.
If the Norwegian Posten AS has not considerably improved the quality of its deliveries by the end of March, the Norwegian postal supervisory authority, NPT, will impose a fine on them.
In future, it will be possible to process money transactions and express shipments between Brazil and Portugal more rapidly than hitherto.
The Romanian post office has sold its shares in the telecommunications provider, First Project, to the Tactical Network company.
Cross-border postal services cannot impair the financial position of universal service-providers.
"We will be concentrating on a small number of customers. In this way we will be able to obviate the need to collect and sort consignments. Moreover, our postmen will work with greater flexibility." - This is how Uniposta boss, Guiseppe Pantano, outlined his company’s strategy. Furthermore, the company is hoping to offer prices that are up to 50 percent lower than those operated by the Italian post office, announced Pantano in the Italian business journal, »Affari e Finanza«. Above all, Pantano is intending to recover the profitable business post segment from Poste Italiane.
More than 500 members of staff at the Spanish Correos, held a demonstration in Madrid last Sunday.
The staff are earning good money - the company is going bankrupt. This was the scenario described by Igor Sirtsov, head of the Russian post office, when he spoke to representatives of the press at the Cebit computer fair. Sirtsov said his company’s losses this year could be three times greater in the last analysis than originally anticipated.
On 31 May of this year, 49 percent of the shares held in the Israeli post office are due to be sold on the stock market in Tel Aviv.
In a first-class PR Coup, United States Postal Services has largely succeeded in diverting attention away from its price increase, which will come into effect in mid-May.
Weaker economic growth, the severe winter storms experienced in the United States and lower fuel surcharges caused FedEx’s performance to decline in the third quarter of the current financial year.
The smaller Chinese CEP providers are starting to compete with giants like FedEx, UPS and co.
"In this country TNT is becoming the leading express company operating in both a national and an international arena". It was with these words that CEO Peter Bakker announced a two-digit target growth figure for the Brazilian express market at a press conference in Sao Paulo last Wednesday.
From 28 May onwards, FedEx will be offering a domestic next-day service in China.
In an initiative that has only just been publicised, Nippon Express, one of the largest Japanese carriers (turnover in 2003: 9.1 billion EUR), has taken its first step towards expansion into China.
The direct advertising that is carried by the Italian post office is very effective. This was the outcome of a study commissioned by Poste Italiane and conducted by GFK Eurisko, which was published in mid-March.

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

From Morgan Stanley Research: "We attended the National Postal Forum this week and came away with the view that in the wake of postal reform legislation, the USPS may become a greater competitive threat to FedEx and UPS, especially in the rapidly growing B2C market. Longer-term, a more nimble, profit-motivated Postal Service is probably not a bad development for the marketplace. However, a Postal Service unshackled from its more restrictive regulations of the past may impact the market in ways we have yet to fully grasp. What's New: In this report, we discuss a number of initiatives the USPS currently has underway to improve customer service and reliability. In addition, we discuss the new postal reform law which can change the way the USPS competes in the US domestic parcel segment. Implications: We see the risks from the USPS as bigger for UPS."

According to The Sentinel, "Royal Mail has come under fire after unveiling plans to charge £2,100 a year for people to pick up their post."

From M2 Presswire: "The Australian Competition and Consumer Commission today issued its second report on whether Australia Post is subsidising its competitive activities with revenue from its monopoly activities. The report analyses the 2005-06 regulatory accounts of Australia Post. "The results of the analysis are similar to last year," ACCC Chairman, Mr Graeme Samuel, said. "The regulatory accounts do not provide evidence that Australia Post is subsidising its non-reserved services from its reserved services." Logistics, which is one of the non-reserved services, was again the recipient of a subsidy in 2005-06, but the source of the subsidy appears to be the other non-reserved services, not the reserved services. This was a result of logistics related infrastructure being under-utilised while Australia Post builds this part of its business."

The Financial Times has reported that "Klaus Zumwinkel said last week he had heard "many voices" in Berlin saying Germany would consider delaying the liberalisation of its postal monopoly. The chief executive of Deutsche Post and chairman of Deutsche Telekom enjoys better political connections than most. But unfortunately for him, the voices he is hearing are not speaking in unison. Peer Steinbrück, the finance minister, last week appeared to support Mr Zumwinkel's view as he rhetorically asked why Germany should open its market when European neighbours such as France and Italy appear in no hurry to do so. However, Michael Glos, the economics minister, yesterday insisted Germany would stick to its plan to open up the market at the end of the year. The EU has set a target of January 1 2009 to end postal monopolies elsewhere but even that is looking increasingly unlikely. But European market liberalisation is not Mr Zumwinkel's only issue with Berlin."

According to the Daily Oklahoman, "There is an art to receiving and shipping 13,000 DVD movie rentals every day at the Netlix distribution center that opened two weeks ago in Oklahoma City. The process starts with a high-tech, Internet-based storefront -- www.netflix.com -- from which Netflix subscribers choose from up to 75,000 movie titles. It ends with well-timed coordination with the U.S. Postal Service, which delivers about 13,000 DVD rentals to and from the Oklahoma City center to subscribers every day."

The ClickZ Network has noted that "Recently the Wall Street Journal Online quietly rolled out a new advertising campaign in partnership with United Parcel Service (UPS), one of its large ad customers. But in a split with the publisher's previous approach to Web ads, clicking the UPS banners scattered across WSJ.com won't take viewers to UPS's company site, but to a branded microsite hosted by the Wall Street Journal and revolving around business content focused on the shipping business. It's the latest example of online publishers working directly with advertisers to create advertising content associated with the publisher, but still wholly separate from the publisher's own creative systems."

The Namibian has reported that "Speaking at the handing over ceremony Deputy Minister of MWTC Stefanus Mogotsi commended the company noting that parastatals have a key role to play in the national economy and are major stakeholders in the government's National Development Plans and Vision 2030. "In making a positive contribution to the Fiscus through dividends parastatals would remain relevant role players in adding value to government efforts in implementing development plans and achieving Vision 2030 " he said."

From Business Wire: "Research and Markets (http://www.researchandmarkets.com/reports/c52868) has announced the addition of "Express House View 2007" to their offering. Our Express House View presentation provides an overview of the European express and parcels delivery market including data and forecasts on the segmentation of the market by destination, service level and type of recipient."

From PR Newswire: R.R. Donnelley & Sons Company has announced that the U.S. Postal Service recognized RR Donnelley with the prestigious 'Partnership for Progress' Award. Postmaster General John E. Potter presented the award during the March 26, 2007 National Postal Forum general session. Potter recognized RR Donnelley's efforts to advance the use of mail services and their commitment to the notion of mail as a viable business solution in presenting the award. 

Ovum has reported that "Poste Italiane has confirmed its debut as a mobile virtual network operator in the oncoming opening of the Italian MVNO market. The company will deliver its services through Vodafone Italia's network and aims to have 2 million subscribers by 2011."

The Hindu has reported that "REVA Electric Car Company Pvt. Ltd. (RECC) has signed a Memorandum of Understanding (MoU) with Kerala Postal Services, Thiruvananthapuram. RECC will provide three specially customised REVA electric cars to deliver and collect speed post articles in Thiruvananthapuram and its suburbs."

DM News has reported that "The Postal Regulatory Commission is hoping to expedite its reconsideration of certain rates based on the U.S. Postal Service Governors' rate decision announced March 19. This was a key message from Dan Blair, the new chairman of the Postal Regulatory Commission, who spoke at the annual Alliance of Nonprofit Mailers' early morning breakfast at the National Postal Forum. "The [USPS] will be filing a document outlining possible proposals for how they would like us to look at [the reconsidered rates], and from there we will establish a process," Mr. Blair said. "We expect that to happen soon -- even this week. This will be intended to make the process move quickly and efficiently so we can get back to what is on our plate, which is establishing a new system."

Press Release: "Attention Business Mailers: MAILCOM is offering a comprehensive program of seminars and workshops to help your company understand and comply with these mandatory changes as part of its 27th annual event at the Atlantic City Convention Center. This is your only opportunity to receive final, updated rates and regulation information. Some 135 seminars will be offered.

Multichannel Merchant has noted that:

From PR Newswire: "The U.S. Postal Service has a long history of exploring cleaner, more energy-efficient, and more cost- effective ways to deliver the nation's mail. And, as such, it has acquired the nation's largest fleet of alternate-fuel vehicles -- some 38,000 cars, trucks and minivans -- powered by electricity, compressed natural gas, liquid propane gas, ethanol (E85), biodiesel fuel, and hydrogen fuel cells."

Logistics Management has reported that "Express delivery and logistics services provider DHL said this week it will open a new international gateway in Riverside, California in an effort to enhance service quality and meet the needs of customers shipping to and from Asia-Pacific and the western part of the United States. The gateway, dubbed DHL Riverside, is located at the company’s West Coast Distribution Center in Riverside, California, which opened in 2005. DHL said it has invested approximately $3 million into the location for things like on-site offices for providing customs-processing and clearance functions related to DHL international shipments upon arrival. The site will become fully functional today with the arrival of a flight from DHL’s Central Asia SuperHub in Hong Kong to Riverside. And it added that this gateway will process letters and packages loaded off."

 

March 27, 2007

As the Santa Monica Daily Press has reported, "Former Santa Monica Mayor Ruth Y. Goldway will be front and center during today’s ceremony marking the introduction of a forever stamp by the U.S. Postal Service. It is after all something the former mayor has thrown her support behind for years. Some would say she championed the creation of the stamp."

From the U.S. Postal Service: "The U.S. Postal Service (USPS) has launched a new Global Business group to help mailers expand their international reach through customized, flexible international shipping solutions — and increase the Postal Service’s $1.9 billion annual share of the international shipping market at the same time. “The U.S. Postal Service is known for keeping America connected, but we really are a global company,” said Paul Vogel, USPS Global Business Managing Director and Senior Vice President. “We deliver nearly half of the world’s mail and our international networks reach every country on the globe.” Vogel said the time is right for international expansion. In addition to extensive market analysis, the new team consulted with customers, integrators, consolidators and national posts around the world, and built the Global Business group to be responsive."

The Washington Post has reported that "Life is dead. Again. Time Inc. pulled the plug on its venerable nameplate yesterday for the third time in 35 years, saying it no longer makes sense to print the publication as a magazine. Instead, the company said it will launch a "major portal" online to host its millions of award-winning photographs. Time Inc. said Life's Web site will launch later this year and feature about 10 million images, 97 percent of which have never been seen by the public."

As the Financial Times has noted, "Few industries are more exposed to the forces of globalisation than logistics. As supply chains are stretched across oceans and continents, manufacturers and retailers are increasingly looking for logistics partners with international capabilities."

KOIN News has reported that "Hundreds of letter carriers staged a protest Thursday outside the Beaverton post office. To save money, the U.S. Postal Service is now outsourcing mail delivery service, angering mail carriers who wonder what's next for them. Contracted workers are already delivering to a subdivision in the Bethany area. Some believe that the move will lead to increased cases of identity theft. But officials say the workers are put through the same background checks as regular postal service employees. Current letter carriers feel that the move to privatize will eliminate family wage jobs." [The contracting out of postal routes is a story that will become more prominent in the months ahead.]

As DM News has noted, "Dialog between mailers and the U.S. Postal Service is key if the mailing industry is going to successfully navigate new roads that have barely been mapped. This was a key message from Postmaster General John E. Potter in his keynote address at the National Postal Forum yesterday."

Materials Handling World has reported that "UK Mail, the postal services arm of the Business Post Group, has secured an important breakthough that it is confident will soon see the launch of a brand new “Agent for Access” service. This will enable companies in the financial services and charity sectors to benefit from a downstream access postal service which they have previously been unable to enjoy. This unprecedented move extends postal choice to a whole new market of mailers and marks an important development for the deregulated mail sector."

The National Association of Major Mail Users (NAMMU) has reported that "Canada Post is introducing enhancements to the Unaddressed Admail order creation process based on customer feedback, effective April 16. Designed to enhance flexibility, these changes include the ability to create a new mailing plan from a previous order; access improved functionality to import and export mailing information from one system to another; print Admail Delivery Slips and Container Labels before the order is transmitted to Canada Post. Full descriptions of changes and enhancements are in a brochure mailed to clients this month."

From the U.S. Postal Service: "In September 2006, the use of Intelligent Mail Barcodes for automation discounts became available for letter mail. Charlie Bravo, the United States Postal Service's senior vice president of Intelligent Mail and Address Quality announced that automation discounts for use of Intelligent Mail barcode — formerly called 4-State Customer Barcode — will be available for Flat Mail beginning May 1, 2007. OneCode Services™ available with Intelligent Mail include OneCode Confirm™ for First-Class Mail, Standard Mail, and Periodicals and OneCode ACS™ for First-Class Mail flats and Periodicals. OneCode ACS will be available for Standard Mail this fall. "The Intelligent Mail process is fully automated," said Bravo. "We're looking forward to having everyone on board by 2009."

The remarks of Postmaster General John Potter at the National Postal Forum in Washington have been posted on the USPS web site.

From Business Wire: "As printers and mailers gather in Washington today for the National Postal Forum www.npf.org, U.S. Postmaster General John Potter addressed the topic of "intelligent" mail strategies in the opening session. He also reports on the impact of the new postal barcode in the current issue of Graphic Arts Monthly (GAM), a technical business journal for commercial print firms. Because more than 50% of all printed material is mailed, including over 53 billion catalogs and flats in 2006, printers are deeply involved in issues involving mail processing."

The Daily News has reported that "Lanka Postal Union President Vivekanandalingam said the government's mediation is essential to settle the Postal Department employees' problems."

According to the International Herald Tribune, "Poste Italiane, the postal company owned by the Italian government, said Monday that it would begin selling mobile phone services by the end of the year as it aims for a slice of one of the world's most lucrative, yet saturated, markets. Poste Italiane, which plans to sell the services in partnership with one of the country's four existing cellphone operators, will pay a fee to use their infrastructure as it sets up what is known as a mobile virtual network operator. The company aims to have two million clients five years after the service has been introduced, the Poste chief executive, Massimo Sarmi, said at a presentation. He declined to say which of the existing Italian operators he expected to sign the accord."

From PR Newswire:

Reuters has reported that "Workers at a FedEx Corp. facility in Northborough, Massachusetts, voted down a proposal to be represented by the Teamsters union, a National Labor Relations Board official said on Monday. The vote comes at a time when the union is making a push to represent the package-delivery company's 15,000 North American truckers, none of whom have collective representation. Robert Redbord, deputy regional attorney at the NLRB in Boston, said the workers at the facility voted 29 to 14 on Thursday against seeking unionization."

March 26, 2007

From the U.S. Postal Service: "The Forever stamp was previewed today at the National Postal Forum, the premier trade show for advertising, marketing and mailing executives. Featuring the Liberty Bell image and the word "forever," the stamp will be good for mailing one-ounce First-Class letters anytime in the future — regardless of price changes. The Forever stamp goes on sale April 12 at 41 cents. Customers can begin using the stamp when postage changes May 14."

Forbes has reported that "Economy Minister Michael Glos said Germany is sticking to its plans to end Deutsche Post AG's monopoly on mail delivery operations by the end of this year."

As Business Week has noted, "The privatization of Japan's post office, which doubles as the world's biggest savings bank, was hailed around the globe as a watershed free-market reform that would streamline the world's No. 2 economy. But just months before the October kick off date, a darker prospect looms over what will unseat Citigroup Inc. as the world's biggest financial institution. Far from encouraging open competition, some are warning that the government-nurtured colossus could leverage its size to stamp out rivals, foreign and domestic."

According to Trinidad & Tobagos Newsday, "Better service from staff and more postal outlets are some of the requests customers made at the fifth and final of public consultations on the draft Postal Sector Policy (PSP) held Friday at the Crowne Plaza hotel in Port-of-Spain."

Transport Intelligence has reported that "Whilst there were some exceptional reasons for these poorer figures, such as bad weather in the US, the biggest reason for weaker margins was lower growth in the US economy. In its core Express business, domestic US demand fell by 2% leading to lower margins. International grew, but at a modest 3%. More growth was seen in FedEx's Ground and Freight LTL businesses, largely due to a strong offering in areas such as home delivery as well as expansion through acquisition. FedEx's senior management seems to be sanguine about slower American growth."

From the U.S. Postal Service: "On March 19, the Board of Governors set Monday, May 14, as the effective date of all the changes in rates and fees for all classes except Periodicals, which is delayed until July 15. Although the Governors asked the Commission to reconsider some of the prices, the Postal Service and its customers should plan to implement the prices as recommended by the Commission in its February 26 decision. There is no set timetable for the reconsideration exercise, nor is there any assurance that different prices will be recommended."

UPS has announced the launch of UPS Delivery Intercept, an automated service that gives customers ultimate flexibility and control by enabling shippers to intercept and reroute packages before they’re delivered. UPS Delivery Intercept is the industry’s only Web-enabled package interception service. With UPS Delivery Intercept, a shipper simply uses a UPS package application such as UPS WorldShip®, UPS CampusShip® or UPS Internet Shipping®, clicks on the 1Z tracking number and requests a reroute. Interception requests also can be made through a shipper’s myups.com account as well as via UPS Signature Tracking®.

The Washington Post has noted that "Nearly 7,000 representatives of companies and organizations that have a stake in the U.S. mail system will gather in Washington this week for a glimpse of their future. A lot of attention will be paid to Dan G. Blair, the new postal regulator who will be a key partner with Postmaster General John E. Potter in the first overhaul of the U.S. Postal Service since 1971."

According to DM News, "catalogers must be prepared to face reality: Postage rates are going up and Standard mailers have to adapt. We agree with Mr. Libey’s ideas on ways to gain savings to maintain financial bottom lines in the face of the postage hike. Catalogers must continue to lobby James C. Miller III, chairman of the USPS Board of Governors, as well as Postmaster General Jack Potter. A postage rate increase should not have been the reason for catalogers to galvanize themselves into action. Still, better to start now and turn a new page into making the catalog an even more efficient component of multichannel retail." See also "How to offset some of the postage increase: Libey’s take."

Multichannel Merchant has reported that "Attendees here at the spring NEMOA conference have discussed such tactics as improving list hygiene, reducing circulation and trim size, and comailing as ways to minimize the effect of the May 14 postal rate hike. But Michael Grant, managing director of New York-based consultancy Winterberry Group, noted that no one has brought up—at least publicly—passing the costs on to the consumer."

According to the Sun-Sentinel, "Postal rate increases in any guise by this incompetent U.S. Postal Service management are unwarranted and unwanted."

The Daily Record has reported that "hundreds of postal workers in Edinburgh staged wildcat strikes over the weekend, creating a backlog of mail."

March 25, 2007

As the New York Times has noted, "though the mailboxes bear the Postal Service’s familiar eagle’s-head logo, the middle-aged man who delivers the letters does not wear a mail carrier’s uniform. And he drives a private car, not a postal vehicle. Harbour Pointe at Shorehaven, in the Clason Point neighborhood, is the first place in the city where residents get some of their mail not from the typical uniformed, unionized letter carrier but from a private mail deliverer under contract with the United States Postal Service. Such private workers are delivering mail near Palm Beach, Fla., and Portland, Ore. But they are relatively uncommon, serving only 6,400 of the Postal Service’s roughly 250,000 routes nationwide."

Suburban Journals has reported that "Scott Tate, director of the St. Charles Chamber of Commerce, hopes mail delivery problems will improve after he and several chamber and postal officials met nearly two weeks ago. Tate had said several area chambers and nonprofit organizations complained that mail sent to their members was taking two to three weeks to be delivered. Most problems were with standard and bulk mail, which is funneled to the Gateway branch post office in downtown St. Louis. However, some organizations had reported problems with first-class mail."

Ha'aretz has reported that "The Postal Authority is on its way to the Tel Aviv Stock Exchange sometime in the next few months. In recent days the Government Companies Authority (GCA) presented a draft of a proposed law to privatize the Postal Authority, including the Postal Bank."

The NALC Bulletin has reported that "NALC President William H. Young and Postmaster General John E. Potter reached agreement March 20 to resume bargaining for a new National Agreement. They set April 6 as a deadline to reach settlement. Young and Potter also agreed that, in the event talks fail and an impasse remains, mediation would be waived and the impasse would go directly to binding arbitration. NALC President William H. Young and Postmaster General John E. Potter reached agreement March 20 to resume bargaining for a new National Agreement. They set April 6 as a deadline to reach settlement. Young and Potter also agreed that, in the event talks fail and an impasse remains, mediation would be waived and the impasse would go directly to binding arbitration."

ThisIsMoney has reported that "Royal Mail could be forced by the industry regulator to cut the price of delivering rivals' letters for the 'final mile' - a move it claims could be crippling. TNT Post, Royal Mail's biggest competitor, has appealed to Postcomm to force Royal Mail to cut its charges because it says they are so high that competitors are being 'squeezed out of the market'."

If you ever want to know how Singapore is handling the reform of its postal system, just take a look at the Ministry of Information, Communication, and Art web site.

March 24, 2007

Engadget has noted that "Mobile commerce is taking some parts of the world by storm right now, and Kenya didn't want to be left out of the party. The country's largest mobile carrier has introduced a service to allow monetary payments to be made by SMS, guaranteeing that just about any customer can use the new service."

The Journal & Courier has reported that "Mail-processing operations will remain in the city in a decision reached by postal officials after more than a year of study over whether that work should be moved to Indianapolis. No significant changes will be made at the Bloomington processing center, U.S. Postal Service officials said."

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

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From the U.S. Postal Service: "International Pricing Change – Final Mailing Standards We posted our final mailing standards today to accompany the international price change effective on May 14. The final standards in PDF and TXT formats are now available on usps.com/ratecase, and will appear in the Federal Register (both in print and online) shortly."

From Business Wire: "Group 1 Software, Inc., a Pitney Bowes Company has announced it is echoing the Postal Service in recommending that U.S. mailers prepare now for more stringent address validation requirements, which have the potential to significantly reduce the number of mail pieces qualifying for postal discounts. The Postal Service issued its recommendation in a February 2007 letter, which confirmed August 1, 2007, as the implementation date for the new coding certification cycle."

March 23, 2007

From the U.S. Postal Service DMM Advisory: "Final Mailing Standards to Support the Pricing Change We posted our final mailing standards today to accompany the domestic price change effective on May 14. The final standards in PDF and TXT formats are now available on usps.com/ratecase, and will appear in the Federal Register (both in print and online) shortly. In addition to the final rule, on usps.com/ratecase you can find the New Domestic Rates and Fees tables in HTML and PDF formats, as well as downloadable files in comma-delimited format. Our Web site also provides helpful information for mailers, including updated frequently asked questions (FAQs), press releases, and Mailers Companion and MailPro articles related to the pricing change."

The Kenya Broadcasting Corporation has reported that "The 24th Edition of the Universal Postal Union (UPU) congress will be held in Nairobi in 2008. This will be the second time the congress is being held on the African Continent after Egypt hosted the last meeting 70 years ago. Over 5,000 delegates from across the world are expected to attend the congress. Kenya's Post Master General, Fred Odhiambo now wants the UPU Kenya Secretariat to fast track its action plans and pave way for the formation of an African Support preparation Committee. Odhiambo appealed to all member countries from the continent to work towards showcasing the African Postal System as an outfit that provides high standards of service delivery. He said Africa should use the Nairobi congress to lobby for the adoption of specific postal conditions that will spur the growth of the industry in the continent."

Personnel Today has reported that "A partnership between Royal Mail and Remploy - the provider of employment services for disabled people - is set for a national roll-out following a successful pilot programme."

Multichannel Merchant has reported that "Even if the catalog industry cannot avoid the U.S. Postal Service's rate increase, which could be as high as 40% for some catalogers come May 14, New England Mail Order Association members said the industry cannot afford to take its foot off the gas pedal when it comes to talking to elected officials."

The Mailers Council has urged the Governors of the Postal Service to avoid the need for one more omnibus postal rate case under the rules governed by the Postal Reorganization Act. We encourage the Postal Service’s Board of Governors to avoid such a costly and difficult rate case and to publicly state its intention to raise rates going forward only under the new process."

Channel News Asia has reported that "The Ministry of Information, Communications and the Arts is seeking feedback from the industry and members of the public on the draft Postal Services (Amendment) Bill. The Postal Services will be fully liberalised when Singapore Post's monopoly licence for Basic Mail Services expires at the end of this month. The Postal Services (Amendment) Bill will provide the legislative framework for liberalising Basic Mail Services."

Media Daily News has reported that "to cut down on mailing costs and paper consumption, a direct marketer based in Portland, Oregon has gone electronic. It's sending printable coupons to consumers on CDs. The direct mailing of CDs allows consumers the option of choosing coupons of interest, which they print out themselves. This reduces household and municipal trash costs and the burden of recycling unwanted mailings." [Wait'll he sees what it'll cost to mail CDs under the new rates.]

The Seattle Post-Intelligencer has reported that "One new housing development at a time, more non-postal service mail carriers are taking on routes across the nation, and the Puget Sound area is no exception. Private carriers typically serve rural areas, don't receive union benefits and work for lower, flat rates. Last Friday, about 350 unionized postal employees protested outside a post office in Beaverton, Ore., denouncing the use of private carriers in a 374-home development nearby. The argument is usually the same: Residents fear that their private mail might not be as safe, and post office employees say the private workers aren't always held to the same ethical standards."

According to AdWeek, "Not every business is decrying the upcoming postal rate hike. Seeking to take advantage of an opportunity, Neopost, a supplier of mailing systems, last week began distributing mailers by San Francisco-based Wayfinder, talking up the company's ability to help corporations address the changes."

MMDNewswire: "A group of small business owners (The Brown Shield Association, BSA) unites against shipping Goliath UPS, citing omissions, non-disclosure, unfair practices, breach of contract, and predatory practices for franchised locations."

VoteTrustUSA has noted that "Any voters who have worried whether the local election office has received their mail-in ballots would be able to track the status their ballots under a bill introduced by Congresswoman Susan Davis (D-CA). The Mail-In Ballot Tracking Act would require states to implement procedures for tracking, via the telephone and Internet, the growing number of mail-in ballots. The United States Postal Service is currently introducing an "Intelligent Mail" system which, if applied to election mail, will allow voters to find out via the internet or the telephone which postal processing facility last handled their ballots and when they were handled there. "Mail ballot tracking is a win-win for all," added Davis. "I believe it will increase voter participation as it increases peace of mind."

According to the Herald News, "Wednesday's story about mail delivery problems in New Lenox apparently struck a nerve. It quickly became one of our Web site's most clicked-upon stories. It also generated a host of comments, which came from readers from both coasts and in between."

The Guardian has reported that "The battle between Royal Mail and one of its leading competitors in the UK letters market, TNT Post, intensified yesterday with each side making conflicting demands for changes to the way prices are controlled. At the heart of the struggle is the issue of how much Royal Mail can charge competitors for delivering mail those competitors have collected. Royal Mail argues that it needs to be allowed to charge more to compete in the key business mail market. It says the existing price structure "simply isn't working"."

The Australian Broadcasting Corporation has reported that "Australia Post has rejected a call for special mail runs to help western New South Wales people who have not received their ballot papers in time to have their vote counted for this weekend's state election."

EarthTimes.org has reported that "Canada Post announced it is suspending service to 13 housing units in St. John's, Newfoundland, because of high amounts of dog excrement."

People's Daily has reported that "Moving aggressively to disengage from its hospitality business, China Post Group is trying to concentrate more on its core business. "We will focus only on postal services in the future, and sell or transfer first our hotel assets and then the ones in other sectors," Ren Yongxin, deputy general manager of the Finance Department under China Post Group, told China Daily."

AllAfrica.com has noted that "He does not deny having flown to Bucharest, Romania to attend the Universal Postal Union conference in 2004. all he denies is that he illegally obtained the funds that facilitated the trip. The housing state minister, Micheal Kafabusa Werikhe, yesterday told MPs on the committee on commissions, statutory authorities and state enterprises, that he did not coerce the Uganda Communication Commission (UCC) into giving him the $4,121(sh7.3m) that he used on the trip."

 

March 22, 2007

The Southwest News-Herald has reported that "Rampant problems with mail delivery in Clearing and Garfield Ridge did not improve after Cong. Dan Lipinski (D-3rd) and Ald. Michael Zalewski (23rd) met with officials from the Clearing Post Office in January, so the two politicians sought answers this week from Gloria Tyson, the U.S. Postal Service’s District Manager/Postmaster for Chicago. “The problems continue,” said Lipinski, after greeting Tyson and several other USPS representatives who attended the meeting Tuesday morning in Lipinski’s district office, 6245 S. Archer Ave. “The situation is nothing short of a disgrace,” said Zalewski."

Globes has reported that "The privatization of the postal service has taken a further step forward. Sources inform ''Globes'' that under a proposal drawn up by Government Companies Director Eyal Gabbai, the state will sell up to 49% of Israel Post Company through a share offering to be held on the TASE by May 31."

One writer for the Rockford Register Star wants to know: "Shouldn’t price of stamps be dropping?"

Hemscott has reported that "Postcomm, the UK postal services regulator, has launched a review of the charges Royal Mail imposes on other operators for access to its network and the delivery of mail over the so-called 'final mile'. Competition is developing at a much faster pace than originally predicted, according to Royal Mail, with new entrants such as TNT Post and DHL securing about 25 pct of the bulk business mail market since it was opened on 1 January 2006."

Press Release: "Window Book, Inc., the leader in postal mailing and shipping software announced that they will be showcasing at booth #623 at the National Postal Forum in Washington, DC in March."

RFID Solutions has reported that "SAVR Communications, Inc. has developed technology that will drastically reduce expenses and environmental impact associated with the logistical services of the three express shippers."

According to the Brattleboro Reformer, "As the town waits for a relocation proposal to work through the labyrinth at the U.S. Postal Service headquarters in Washington D.C., two lawmakers are trying to give it a shove. Sen. Patrick Leahy, D-Vt., and Rep. Peter Welch, D-Vt., sent a letter to the U.S. Postmaster General John E. Potter asking that the Jamaica proposal be approved soon."

As the Daily Express has noted, "thousands of postal workers are demanding a 27 per cent pay rise and a cut in hours."

The Financial Times has reported that "FedEx suffered its first decline in profits for more than three years in the third quarter and warned that earnings growth could fall below the group’s long-term target this year. The sluggish results and cautious outlook reflected softening demand for express delivery services as the US economy slows."

Newsday has noted that "The Theodore Roosevelt Association has chosen the head of the Atlanta History Center as its new president with the intention of creating a world-class museum and research facility dedicated to the 26th president. James Bruns, who has run the Atlanta museum for four years after serving as the Smithsonian Institution's development director and founding director of its National Postal Museum in Washington, will begin work full time with the TRA July 1 but will be involved in association business part time immediately.

Dow Jones has reported that "German Finance Minister Peer Steinbrueck Wednesday criticized plans to open the country's postal market Jan. 1 ahead of other European countries, calling for a level playing field in Europe."

The Association for Postal Commerce welcomes its newest member:

Tension Envelope Corporation 819 E. 19th Street Kansas City, MO 64108-1781 represented by Dan Imler, Director of Advertising

The Postal Regulatory Commission has posted the transcript from its recent joint conference with the Postal Service on postal rate making on its web site.

March 21, 2007

The following reports have been 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.

Press Release: "BÖWE BELL + HOWELL, a leading provider of document processing and postal solutions, has enhanced its Flexisort® flats sorter to better facilitate presorting discounts and mail-handling capabilities. These enhancements include the addition of a high-speed linerless labeler “in-line” as part of the sorting process, and the improved ability to handle mixed mail as well as flats, enabling mailers to process a wider spectrum of mail."

Security Park has reported that "Despite the recent media attention devoted to online security threats such as phishing and pharming, it is the more trusted traditional methods that are leaving UK businesses open to unanticipated threats. Businesses sending confidential documents by courier and postal services are at greater risk of confidentiality threats such as theft, damage and loss compared to other methods of communication according to the results of a recent experiment conducted by LogicaCMG. The experiment compared seven methods of communication including courier, post, special delivery, fax, email, secure encrypted email, and even carrier pigeons, against a variety of factors including cost, time, condition of arrival and environmental impact. It revealed that, with the exception of carrier pigeons, common courier and postal services were the least effective form of sending confidential information."

According to Bloomberg, "FedEx Corp., the world's largest air-cargo carrier, said third-quarter profit fell 2 percent to $420 million for the first drop in three years as a slowing U.S. economy and winter storms damped shipping demand."

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

In order to discover the threats to which Deutsche Post is exposed, one has to study the 2006 annual report. TheMail Communication segment, which is highly important to the company result, experienced a clear downward trend in turnover (-4.6%) to 6.15bn euros. The situation is aggravated by the negative performance of the Direct Marketing segment (-1.9%; 2.77bn euros), which is completely contrary to the general trend in Europe.
According to as yet unconfirmed information, Posta Romana (2005 turnover: 242.8m euros, +12%; pre-tax profit approx. 14m euros, +230%) has been sold. According to information gleaned by the CEP News from Posta Romana sources, the buyer is said to be Ceská Posta (CP).
Österreichische Post AG managed to more than compensate for the drop in traditional mail turnover (-1%) through strong growth in advertising mail (+6.6%) and parcel turnover (+7.2%) in 2006.
Spring Global Mail unexpectedly announced its pull-out from the US market in a 4-sentence statement last week. According to the statement, the entire Spring Global Mail US business including customer contracts and all assets have been sold to Pitney Bowes.
Last year, Post Danmark achieved a record result with a pre-tax profit of 159.4m euros (+15%).
NewZealand Post ended the first half of the current financial year on 31 December on a 9% turnover increase (325.6m euros).
The current public debate on liberalisation in Germany is "painfully amateurish", according to Hanjo Schneider, managing director of Hermes.
The High Court upheld the 9.63m GBP financial penalty Postcommlevied on Royal Mail last August. The fine was imposed after Royal Mail estimated that around 14.6million letters, packets and parcels in its care were lost, stolen, damaged orinterfered with during 2004/2005. The High Court judge said the fine reflected the damage suffered by Royal Mail customers.
La Poste workers in France can look forward to a pay rise.
Hermes will start parcel delivery operations in Austria on 1 July. Hermes market entry in Austria will have significant economic repercussions on Österreichische Post.
In an interview with Belgian daily »De Tijd« (13.3), ABX CEO Laurent Levaux declared his interest in taking over Ziegler Belgium (2006 turnover: 1.55bn euros). Ziegler is Belgiums second biggest logistics operator after market leader DHL with ABX in third place.
Last years external sales for Go! Express & Logistics, the association of medium-sized courier service providers in Germany, amounted to 240m euros (+20%).

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

According to Precision Marketing, "The Royal Mail has released figures which show that direct mail volumes and expenditure are falling."

The Financial Times has reported that "The head of Deutsche Post yesterday launched a sharp attack on the resistance in many European countries to end their postal monopolies and urged Berlin to postpone Germany's plans for early liberalisation. Klaus Zumwinkel, chief executive, warned of an uneven playing field between operators in Europe that could put jobs and profits at Deutsche Post at risk."

Financial Times Deutschland has reported that "Deutsche Post, the German postal service operator, announced yesterday that it is anticipating a slight increase in turnover and a profit of at least 3.6bn euros for 2007. This was lower than analysts had expected, and led to a drop of 4.8 per cent in the company's share price to 22.11 euros. Analysts believe that investors are becoming increasingly sceptical that the company will be able to meet its medium-term targets; Deutsche Post had announced that it is aiming to achieve ebit of at least 5.2bn euros by 2009."

According to The Guardian, "The government plans to introduce a set of criteria to determine where post offices must be."

WCBS-TV has reported that "It's zip code anxiety time on Manhattan's Upper East Side where many who have shared the same five digits for decades on their upscale addresses are now about to get new numbers. Sheila Stephenson complained about the zip code split that the Post Office is planning for this coming July. "It's going to be a disaster," she told CBS 2 on posh Park Avenue. "10021 is just magical. Everyone wants to live in that address." But everyone can't. The Post Office says a building boom in 10021 has overwhelmed their sorting service to the point that they've run out of numbers for the sorting and route suffixes that follow every five-digit zip code. Postal Service spokesperson Pat McGovern says she's been swamped with complaints, but says east siders will simply have to adjust." See also 7Online. [It's called: hitting them where they live.]

Taipei Times has reported that "The newly renamed Taiwan Post Co announced yesterday that it had launched a same-day delivery service within Taipei City with the ability to deliver letters and packages within two or three hours."

New Vision has reported that "the former Posts and telecommunications managing director, Edward ssempala Mbuga, was yesterday detained by the Police, reports Paul Kiwuuwa. Mbuga was detained on the orders of the parliamentary committee on commissions, statutory and government enterprises after he denied signing an agreement with Mentor Property Services, a Kenyan firm that caused financial loss of sh1b to the telecommunications company."

The Washington Post has reported that "Federal prosecutors are preparing to unveil criminal charges against former budget director David A. Stockman for incomplete disclosures and improper accounting practices he allegedly endorsed while at the helm of a Michigan auto parts company, according to sources familiar with the two-year investigation. Stockman, 60, famously led the Office of Management and Budget under President Ronald Reagan, who once took him "to the woodshed" for privately expressing doubts about huge deficits at the same time he was selling the administration's budget to the public and federal lawmakers. A grand jury indictment sought by the office of U.S. Attorney Michael J. Garcia in Manhattan and officials at the U.S. Postal Inspection Service could be revealed as early as Monday, according to the sources, who spoke on condition of anonymity because the investigation continues. The sources would not confirm whether an indictment had already been returned." [Now, we;re sure going after white collar criminals is sexy over at the Inspection Service these days, but if that's the direction in which the Service is turned, isn't it time for the general taxpayer...and not the postal ratepayer...to take on the financing of the Inspection Service? Former PostCom board chairman Cary Baer made such an argument years ago. His critique still looks valid.]

From PRWeb: "Window Book, Inc., the leader in postal mailing and shipping software announced launching of a revamped website. Window Book's new website, www.windowbook.com, has a brand new look that is easier to navigate and find what you need much faster. Not only does it include products and services for Mailers and Shippers, it provides valuable up-to-the-minute industry news via blogs and newsletters  all for free to the postal community."

The Chronicle Herald has reported that "Canada Post will ask the U.S. Postal Service to launch an investigation into the disappearance of wartime service medals mailed from Nova Scotia to California last month."

The Times has reported that "Royal Mail is facing union demands for a 27 per cent pay rise that the post group claims will cost an extra £1 billion a year, The Times has learnt. The Communication Workers Union (CWU) has asked for the minimum payment of its members to be brought into line with average basic pay in the UK. The main postal union is also demanding that its members work a 35-hour week, rather than the existing 40 hours."

The American Postal Workers Union (APWU), along with the other postal unions and management associations, has asked Attorney General Alberto Gonzales to grant congressional requests for a briefing by the Federal Bureau of Investigation on its inquiry into the 2001 anthrax attacks.

Deutsche Welle has reported that "Deutsche Post's monopoly on letter delivery will end next year. Even as the company struggles to remain profitable, most other European Union countries are reluctant to liberalize their mail markets. On another matter, Zumwinkel said he plans to remain in his position until his contract expires at the end of 2008. He has been CEO of Deutsche Post since 1990."

Dow Jones has reported that "Deutsche Post World Net AG Chief Executive Klaus Zumwinkel said Tuesday there could be delays to the opening up of the mail market in the European Union."

The Associated Press has reported that "Israel's largest trade union on Tuesday announced it was launching a sweeping general strike at daybreak Wednesday that would shut down the country's only international airport and many other services. General strikes in Israel are all encompassing, essentially shutting down the country. Government offices, seaports, the central bank and local municipalities are strikebound. Garbage often piles up on the sidewalks and postal, phone and electric services are also stopped."

The Financial Times has reported that "Japan Post said on Tuesday it was planning to offer mortgages, credit cards and small business loans following its privatisation in October this year, in a move that would introduce a massive competitor to private Japanese banks in areas they consider vital to their growth."

 

March 20, 2007

From U.S. Postal Service: "New Domestic Rates and Fees tables in HTML and PDF formats for the price change effective Monday, May 14, 2007, are now available on usps.com/ratecase.

Press Release: Inc. magazine and Inc.com (www.inc.com) today announced plans to expand the Inc. 500, Inc.’s acclaimed annual list of America’s fastest-growing private companies, to include 4,500 more of these dynamic businesses.

According to IT Reseller, "Correos, the Spanish Postal Service, handles over 5 billion postal deliveries each year and serves over 19 million homes and 2 million companies a day. The company has implemented an RFID system using RFID Anywhere to improve its delivery times and streamline operating procedures. Correos has successfully implemented the largest RFID project in Europe. The state-controlled company has introduced a radio frequency control system, called Q-RFID, in its 15 Automated Processing Centres (APCs) throughout Spain. The company’s investment included specific software and its integration in the Correos computer systems, purchasing 5,000 passive electronic labels and installation of over 1,900 permanent antennas and over 330 readers for those 15 APCs."

According to the Merced Sun-Star, "Merced's postal service situation appears to be getting worse before it gets better. We are baffled by recent U.S. Postal Service decisions to shift ZIP codes between Merced and Atwater -- without any public input and contrary to the request of Merced's congressman. The postal service is an immense bureaucracy within an even greater federal government labyrinth. Communication at this level certainly is an inexact science. Despite specific requests by Rep. Dennis Cardoza, D-Merced, to involve the public in the zone-shifting process, postal authorities unilaterally have switched 913 Merced addresses to the Atwater ZIP code and moved just over a hundred Wintonites to the Atwater mail jurisdiction. Ignoring and annoying a congressman might not be the smartest course of action and it appears Cardoza now will be meeting with Postmaster General John Potter on the matter. If this gets nowhere, Cardoza will have the Government Organization Committee investigate the postal service's management decisions." [Heck, the Postal Service eats congressmen for lunch!]

Since the Forever Stamp was so popular with the press, let's build on this. How 'bout a "Forever Bulk Mail Indicia" for all those unbelievably overburdened business mailers who have to suffer back-to-back rate increases with an insufficient amount of time to prepare? Postal Service....It's time to wise up!

The Memphis Business Journal has reported that "United Parcel Service Inc., which increased its annual profit by almost 9 percent, paid its top executive nearly $6.2 million in total compensation in 2006. According to the Atlanta-based package shipper's proxy filing with the Securities and Exchange Commission on Monday, CEO Michael Eskew got $6.2 million in total compensation last year, including a salary of $988,000, a bonus of $41,500, $2.8 million in stock awards, about $1 million in stock options, $174,300 in non-equity incentive plan compensation and $33,137 in other compensation." [Now THAT'S an incentive to perform.]

Dow Jones has reported that "Postal Savings Bank of China opened for business Tuesday in Beijing, allowing the country's fifth-largest bank by deposits to expand its lending after years of being the deposit-taking arm of the state postal service."

The Financial Times has reported that "FedEx, the US package delivery group, is to launch guaranteed next-day deliveries within China for the first time in May, highlighting the increasing sophistication of transportation and logistics services in the country."

From PR Web: "Remote Control Mail™ service gives customers ranging from road warriors and RVers to mobile workers and accounting departments online access to their postal mail, from anywhere in the world, at any time. Remote Control Mail™ receives the mail each day, scans the outside of the sealed envelopes and presents this image to the customer online. The customer then determines whether to have the mail opened and scanned, shredded, recycled, transferred elsewhere, or forward-shipped. Much as people manage their mobile phones and emails - the system is convenient, fast, and cost-effective. Mail addressed to specific departments or account numbers can also be automatically opened and scanned, as in the case of remittance processing where checks are extracted and electronically deposited for real-time access to funds."

According to the Christian Post, "English churches are being encouraged to carry more than just the Gospel message. In rural villages where post offices are threatened with closure, churches may become the next home for postal services. Recently, officials of the Church of England met with the Post Office’s rural division to discuss plans on how stamps can be issued from vestries and pensions out of bell towers, reported the Sunday Telegraph. Other services churches may also add include dry cleaning and a grocery market if the local facility providing the work is in danger of being shut down."

The Herald has reported that "Scotland's largest local authority has warned of a further raft of post office closures within the next 18 months. Glasgow City Council has also criticised a commitment to ensure that 99% of the population of deprived areas are within a mile of a post office, saying the criterion was a reduction on a previous guarantee which cited half a mile."

DM News has a bit more color commentary on the Governors' decision.

March 19, 2007

Welcome to PostCom Radio
Postal Podcast Number 13
Join PostCom President Gene Del Polito and PostCom Vice President Kate Muth in a discussion of  the decision by the Governors of the Postal Service to go forward with the rates recommended by the Postal Regulatory Commmission.

PostCom Members!! The latest issue of the PostCom Bulletin is available online. In this issue: the Govenors Approve the PRC-Recommended Rates.
 

USPS GOVERNORS APPROVE POSTAL REGULATORY COMMISSION'S PRICE RECOMMENDATIONS--REQUEST RECONSIDERATION OF FLATS

The Govenors of the U.S. Postal Service have approved many of the rate increases that were recommended by the Postal Regulatory Commission. They have requested the PRC to reconsider the rates recommended for Standard Mail flats, the Non-machinable Surcharge for First-Class Mail letters and the Priority Mail Flat-Rate Box.

Regarding Standard Mail Flats, the Governors said that they were "concerned that price increases recommended by the PRC may impose an unnecessary degree of 'rate shock' on the catalog industry, particularly small businesses. The recommended increases for some catalog mailers is as much as 40 percent, which is more than double what the Postal Service had proposed."

Regarding the Non-machinable Surcharge of First-Class Mail Letters, the Governors said that "the PRC decision of First-Class Mail two-ounce and three-ounce letters does not differentiate between machinable and non-machinable. The Governors believe this warrants further analysis to ensure there are incentives for mailers to provided letters that can be processed at lower cost on efficient sorting equipment."

Regarding Priority Mail Flat-Rate Box, the Governors said that "the PRC recommended rate of $9.15 for the Priority Mail Flat-Rate Box, which is $1.05 above the current rate and 35 cents higher than the Postal Service proposal of $8.80. The Governors believe a rate below $9 would be more appropriate for this popular consumer and business product and would be cost-justified."

The Board of Governors (which includes the PMG and the deputy) have ordered these new rates to be implement on May 14--clearly well before the 60 days mailers had been telling the Postal Service was the absolute minimum to ensure implementation with new software products. In fact, this doesn't even come close to the 90 days mailers had been telling the USPS was requisite for implementation with no problems.  [Remember...the GOVERNORS approve or disapprove recomemnded decisions, but the BOARD OF GOVERNORS determines the date of implementation.]

In the case of periodicals, the Board "delayed until July 15, 2007, implementation of the new prices for Periodicals (magazines and newspapers) to allow time for the publishing industry to update computer software and adjust to the complexity of the PRC-recommended rate structure for periodicals."

STANDARD MAIL RATES WILL GO INTO EFFECT. Despite the request by the Governors for reconsideration regarding possible rate shock to catalogs, the Board of Governors did NOT order a delay in the implementation of these new, punitive rates. All mailers (with the exception of periodicals) must be prepared to deal with new rates that will go into effect on May 14.

The Governors' Decision can be found at:
http://www.usps.com/ratecase/_txt/Mar19FINAL.txt

http://www.usps.com/ratecase/_pdf/Mar19FINAL.pdf
USPS Press Release

From NewsReleaseWire: "Legislative efforts to allow consumers to eliminate junk mail from their mailboxes have been halted in Colorado. But Coloradoans still have options, such as StopTheJunkMail.com, to remove themselves from mass mailing lists. Stopthejunkmail.com wants consumers everywhere to know that even though similar efforts throughout the country are being stifled, they can still opt-out of getting direct mail using the company’s private service."

The Postal Regulatory Commission has received a report of an attempt to find grounds to settle the proposed Bank of America NSA with the U.S. Postal Service. Unfortunately, the participants have not found their way to a settlement agreement.

Press Release: "Window Book’s new website, www.windowbook.com, has a brand new look that is easier to navigate and find what you need much faster. Not only does it include products and services for Mailers and Shippers, it provides valuable up-to-the-minute industry news via blogs and newsletters - all for free to the postal community."

UPS is making it easier for customers to conduct business around the world through enhancements to its WorldShip®, Quantum Viewsm and Billing Solutions technology offerings. The enhancements will save customers time and money by streamlining the preparation, management and tracking of multiple types of shipments – whether domestic or international, small package or heavy freight.

DM News has reported that Nordstrom has adopted more environmentally aware practices into its catalog program. The decision comes after similar moves by Williams-Sonoma, Hewlett-Packard, and Limited Brands.

Reuters has reported that "Pitney Bowes Inc., the largest maker of mail-handling machines, on Monday named Murray Martin as chief executive officer, succeeding Michael Critelli, who will assume the newly created position of executive chairman. Martin, Pitney Bowes' president and chief operating officer, will become president and CEO effective May 14. He will assume full strategic and operational responsibility for the Stamford, Connecticut-based company." See also the Wall Street Journal.

Press Release: "Come 18-20 September 2007, Asia Pacific Mail & Express 2007 will again provide this platform for regional postmaster generals and CEOs to address this "new world" of changing postal business strategy and increasing collaboration amongst key players."

The New York Sun has reported that "The swankiest zip code in New York is about to get even more exclusive. The U.S. Postal Service has plans to announce that the affluent neighborhood now identified by the 10021 zip code — stretching between East 61st and East 80th streets, from Central Park to the East River — will be divided into three zip codes in July, leaving 10021 for roughly a third of its original area."

Business Week has reported that "This year's list is chock full of companies that are rewriting the rules in their industries. RegardingUnited Parcel Service Inc. (UPS ), which clocked in at No. 33 in this year's rankings....with its basic business of delivering packages turning into a mature business growing in the mid-single digits, Atlanta-based UPS conducted extensive customer research that revealed that many of its corporate shippers were looking to offload the chore of managing their supply chains, which would free them to focus on their core businesses. So UPS went on an investment binge that today enables it to do everything from managing warehouses for customers to helping run clients' entire global transportation network."

From

According to the New York Post, "First came the national "do not call" list. Then there was talk of a "do not e-mail" registry. Now, more than a dozen states from Hawaii to New York are weighing "do not mail" bills. The assault on the direct marketing industry shows no signs of letting up, forcing marketers to find new - and less annoying - ways of getting consumers' attention. Several direct marketing agencies said the industry has been steadily moving away from cold calls and "junk mail" toward more sophisticated techniques that allow them to pinpoint potential customers. The Web, cell phones and video-on-demand cable services have also given marketers powerful new channels for delivering targeted ads whose results can be more easily measured."

Transport Intelligence has reported that "FedEx Freight and FedEx National LTL, the less-than- truckload (LTL) subsidiaries of FedEx Corp.have announced that they will implement a 5.59 percent general rate increase (GRI) effective April 2, 2007. Rates for other operating companies within FedEx Corp., specifically FedEx Express and FedEx Ground, are not affected."

As the Berkshire Eagle has noted, "To streamline its mail-sorting system, the U.S. Postal Service is promoting the use of envelopes that weigh no more than 1 ounce and that are no larger than 6-1/8 inches tall, 11-1/2 inches wide and 1/4-inch thick, which are compatible with its automated sorting systems. By making them the most cost-effective pieces of mail to send, it steers the Postal Service's largest customers to use those envelopes."

From PR Web:

Global-Z International, a bureau specializing in the data processing of international mailing addresses for global direct marketers, announced today enhancement of their Italy