Postal News from August 2007:
The latest issue of
the PostCom Bulletin is available online. In this issue:
In this essay by Mackinac Center for Public Policy economist Chrtistina M. Cohn, she claims private competition would be very effective against the USPS, and that there is historical precedent for saying so.
USPS offers new procedure for periodical mailing applications. Federal executive bonuses getting congressional scrutiny. Discovery Channel will spotlight USPS.
TNT asks staff for wage freeze. Deutsche Post fudging its rates? Postcomm says Royal Mail failing competition. Australia Post sticks to its offer.
A list of upcoming postal-related events.

Postal
Regulatory Chairman Dan G. Blair will be the guest on the IBM Business of
Government Hour at 9 a.m. Saturday, September 1 on WJFK radio (106.7 FM). The
station will have live streaming audio available at the WJFK website (www.wjfk.com)
From the
U.S. Postal Service: "Pay consultations with the Postal Service and the
National Association of Postal Supervisors, The National League of Postmasters
and the National Association of Postmasters of the United States have concluded,
resulting in a four-year compensation package that will remain in effect through
fiscal year 2010."
Analytiqa
has reported that "DHL has been selected as the exclusive small package delivery
provider for the Bon-Ton Stores, Inc., one of the largest regional department
store chains in the US. DHL will provide US domestic Express and home delivery
services, supporting The Bon-Ton store's entire network."
Financial Times Deutschland has reported that "Deutsche Post, the German
postal service operator, is planning to replace its head of finance, Edgar
Ernst, earlier than expected. Mr Ernst's contract is not due to expire until
November 2010. Sources close to the group say that Deutsche Post is examining
possible replacements and that it is also searching for a successor for Bernd
Boecken, Mr Ernst's deputy. A spokesperson for the company has denied that it
wants to replace Mr Ernst but has confirmed that it is looking for a successor
for Mr Boecken, who is to retire next March when he turns 65."
The
Straits Times has reported that "THE Group CEO of Singapore Post Limited
(SingPost), Lau Boon Tuan resigned on Friday to pursue other opportunities. He
will also step down as Director of SingPost. Mr Lau has been SingPost's Group
CEO since February 2005."
The
Globe and Mail has reported that "Canada Post is following Britain's
example, and offering free delivery of mail to Canadian soldiers stationed in
Afghanistan and elsewhere around the world."
From
BusinessWire:
"Research and Markets (http://www.researchandmarkets.com/reports/c67052)
has announced the addition of "Five Factors That Will Shape The Future Of The
Express Industry" to their offering. The express industry is set to undergo
drastic transition driven by growing globalization, deregulation of the postal
sector, the wave of mergers and alliances and the booming e-commerce industry.
This brief contains a strategic overview of the upcoming trends in the European
express market and a detailed discussion of the positive and negative effects of
these trends."
Logistics Business Review has reported that "Mail and logistics company
Norway Post has recorded a 17.8% increase in first half revenue, while also
registering an increase in costs. Going forward, the company aims to cut costs
by improving efficiencies and by further decreasing its dependence on the
domestic postal market, but faces a tough challenge given the increasingly
competitive environment in which it operates.
As DM News
postal commentator
Cary Baer
has noted, "During the past few weeks, both the Senate and the House have held
so-called oversight hearings concerning the Postal Service. This hearing also
featured testimony from a number of high-ranking members of Washington-based
postal-oriented trade associations. To me, however, the most significant
testimony came from Mike Winn, director of postal affairs and mailing operations
for R.R. Donnelley and a member of Postcom’s Board of Directors. Winn was able
to provide testimony based on his experiences and responsibilities at
Donnelley."
Banking Technology has reported that "Citi Markets & Banking and Eurogiro, a
low value payments network of postal organisations and financial institutions,
are collaborating to extend their payment networks. The alliance will bring
together Eurogiro's 61 connections in 50 countries with Citi's existing payment
network encompassing over 100 countries. Eurogiro's members will benefit from
Citi's distribution capacity and payment offerings, while Citi and its customers
will gain access to Eurogiro's distribution network and products."
According
to Nepal
News, "Postal services have came to a complete halt with the postal
employees announcing closure of all the post offices around the country from
Friday to protest government’s 'indifference' towards fulfilling their demands."
PrintWeek has reported that "Finishing kit manufacturer Buhrs is in the
midst of potentially its largest-ever deal, having so far installed six 4700
Film Wrapping Systems at Deutsche Post sites in Germany."
ABC Regional has reported that "Australia Post staff throughout regional New
South Wales, including the New England and north-west, are likely to take
industrial action next month in a push for more pay. The Communications,
Electrical, Plumbing Union (CEPU) says staff are not satisfied with the latest
enterprise bargaining agreement that has been offered to them."
The Hindu
has noted that "for the first time in the country, the movement of mail vehicles
in Chennai will be monitored with the help of global positioning system."
The
Economic Times has reported that "Matching steps with the growing
competition from private courier firms, the Delhi Post is targeting corporate
houses to generate more revenues by flaunting a well-established network across
the country. India Post's Delhi Circle, responsible for postal services in the
National Capital Territory of Delhi, has launched a special service, Mail
Business Centres (MBC), for private companies, through which postal staff will
not only collect the companies' bulk mail, but will also place them in envelopes
and label them with the recipients' address."
August 30, 2007
From
eGovMonitor: "Royal Mail
today announced that Stephen Carter, Chief Executive of Brunswick Group LLP, has
been appointed as a Non Executive Director. Stephen was Chief Executive of OFCOM
between 2003 and 2007 and before that Managing Director of NTL Ltd, the cable,
broadband and telecommunications business between 2000 and 2002. Royal Mail
Chairman Allan Leighton said: "I am delighted to welcome Stephen to Royal Mail.
He brings a wealth of experience from the worlds of telecoms, marketing and
regulation to the Board at a time when we are facing increasing competition from
a range of other communications media as well as rival postal operators."
From the U.S. Postal Service: "In
today’s Postal Bulletin [PDF]
| [HTML],
we introduce a new application procedure for publishers seeking Periodicals
mailing privileges. The “New Launch” procedure provides an alternative process
to apply for and obtain Periodicals mailing privileges under the “general” or
“requester” categories. Publishers who use this procedure are not initially
required to meet traditional circulation standards at the time of application.
Publishers seeking Periodicals mailing privileges under the New Launch procedure
have up to 15 months from the date of initial application to file an updated PS
Form 3500, Application for Periodicals Mailing Privileges, with the appropriate
circulation criteria and to provide documentation showing compliance with
Periodicals circulation standards. The new procedure is available beginning
August 30, 2007."
Ha'aretz
(tongue-in-cheek) warned its readers: "Watch out, Walla. Take heed, Google: the
Israel Postal Company will shortly be competing in the electronic arena to
provide e-mail boxes and services to customers, if not in other areas controlled
by the online giants. The postal service's motivation is simple: It must prepare
for an era when regular mail, featuring envelopes and a stamp, disappears
altogether and is replaced by electronic communications." See also the
Jerusalem Post.
From the
National Association of Major Mail
Users: Canada Post and the mailing industry meet to present and review the
impact of the
2008 rate case as well as the strategic development of all major
postal products and services. A vital session you won’t want to miss.
CEP News (Courier-Express-Postal), published by the MRU Consultancy, has reported that:
The first half of 2007 has produced mixed outcomes at Posten Norge.
Speculation surrounding a new major shareholder boosted Deutsche Post as well as TNT stock prices last Thursday. Apparently Apax, together with UPS, plans to bid 28 euros per Deutsche Post share for the remaining stake which is still held by the state-owned bank KfW, a trader told the news agency »Reuters«.
The relationship between the executive board at Österreichische Post and the workers’ representatives has apparently broken down.
If Royal Mail does not succeed in modernising its business and drastically cutting costs, it should be split into two companies. This was suggested by Nigel Stapleton, chairman of the regulator Postcomm.
Österreichische Post intends to cut one in ten jobs in the delivery sector by the end of 2009.
TNT has asked staff in the Netherlands to agree to a 30-month pay freeze.
The Indian government now apparently plans to take the amended postal bill, criticised by trade associations and operators, to the cabinet and parliament after all, reported the »Economic Times«.
Customers in Germany can anticipate stable postal rates even after the monopoly on letters comes to an end in 2008.
Österreichische Post is going to lose the delivery of parcels in Austria for the mail order company Quelle.
The British CEP operator City Link, one of the largest operators on the market, has completed the first half of the year extremely successfully.
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Klaus Zumwinkel, CEO of Deutsche Post, has announced that the company is interested in entering the Japanese postal market if it is liberalised.
World Courier, which specialises in Special Speed Services, announced the start of a new cool-chain transport service in China last week.
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.)
August 29, 2007
The
Postal Regulatory Commission has extended the dates for comments on the
Commission’s proposed regulations to implement a modern ratemaking and
classification system for market dominant and competitive mail products (Order
No. 26), issued on August 15, 2007, and posted on www.prc.gov. The comment
period has been extended from September 14, 2007 to September 24, 2007. The date
for reply comments is extended from September 28, 2007 to October 9, 2007. The
Commission remains committed to expediting the development of these important
rules.
The
Florida Times-Union has reported that "If Windy Hill residents want their
front-door mail delivery restored, they and Jacksonville must take lasting
action to eliminate the problem of dogs running loose in their neighborhood.
That was the message delivered by a postal spokesman Tuesday at a meeting in
City Hall."
According to
Forbes, "The German cartel office said that regulators' lenient calculations
allow Deutsche Post World Net AG to keep its postal rates unchanged, Frankfurter
Allgemeine Zeitung reported, quoting a spokeswoman of the office."
The
Gaylord Herald Times has reported that "According to U.S. Congressman Bart
Stupak, D-Menominee, the Gaylord mail processing facility not only lacks
equipment which would increase efficiency, it is one of a handful of facilities
in the country without a biological agent detection system. The meeting followed
Stupak’s recent letter to the USPS questioning management decisions to move mail
processing responsibilities of third-class flats from the Gaylord mail
processing facility to the Traverse City Processing and Distribution Center.
Transport
Intelligence has reported that:
DHL has announced the opening of a new facility at the Baltimore/Washington International Airport. DHL's previous operations at the airport have been enhanced with the opening of a new, $1.6 million on-airport facility serving Baltimore and the surrounding areas. Improved material handling equipment for aircraft container loading and unloading as well as a 25 percent larger facility will provide for a significantly more efficient operation.
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FedEx Express (FedEx) has announced the launch of a dedicated direct flight between Manchester, U.K., and the U.S. FedEx will fly a wide-body MD-11 freighter daily, Monday through Thursday, between Manchester International Airport and Memphis, Tennessee, U.S. The flight, originating at the FedEx European Hub in Paris, will increase FedEx daily capacity on the important U.K. - to - U.S. route by up to 50% and from Europe to the U.S. by up to 20%.
The Age has reported that "Australia Post says its 12 per cent pay offer to
postal workers is generous, rejecting unions claims that it fails to keep up
with CPI. Australia Post said it was offering a 12 per cent pay increase over
two and a half years, plus a one-off $500 performance bonus to workers under a
new enterprise bargaining agreement. Australia Post spokesman Rod McDonald said
the agreement also locked in all existing award entitlements and conditions.
"Our offer is a very good one," Mr McDonald said."
The
Malaysian
National News Agency has reported that "A Malaysian student's letter on the
plight of a tiger cub which lives in the rainforest of Malaysia won her the
first prize in the 36th Universal Postal Union (UPU) International
Letter-Writing Competition for Young People in Berne, Switzerland."
August 28, 2007
The
Cambridge Evening News has reported that "The Royal Mail is finding it
difficult to cope with competition, partly because of its slow progress in
improving efficiency and developing new services, according to an industry
report. Postal regulator Postcomm, which produced the study, has called on mail
operators to make the most of the opportunities presented by the changing mail
market."
Forbes has reported that "German mail operator Deutsche Post is not going to
have a very happy new year in 2008 when the German postal sector is liberalized,
say the analysts that downgraded the stock on Tuesday."
The
Discovery Channel’s new series Really Big Things profiles “the inner workings of
massive man-made wonders that keep our world moving.” The U.S. Postal Service,
which processes and delivers more than 213 billion pieces of mail every
year—handling more than 46 percent of the world’s card and mail volume*—will be
showcased in tomorrow’s (Wednesday, Aug. 29) episode. Watch Really Big Things at
8 p.m. ET/PT Wednesday, Aug. 29, on the Discovery Channel to follow the modern
journey of a letter through state-of-the-art machinery at the Santa Clarita,
Calif., Processing and Distribution Center and beyond.
The
Poughkeepsie Journal has reported that "Poughkeepsie school district
residents who tell the tax collector, "The post office ate my bill," won't just
be making excuses. According to Poughkeepsie City School District officials, an
unknown number of this year's school tax bills were damaged or destroyed by
sorting ma-chines at the Poughkeepsie Post Office, 55 Mansion St. "It seems that
the machinery, as it sorted out the various tax bills, it just chewed some of
them up," Poughkeepsie Superintendent Laval Wilson said. The district has not
yet determined whether there will be an extension on the taxes' due date because
of the shredding. Taxpayers who haven't received a bill should contact the
district. This is the second year in a row the post office's machinery has
jammed up on the city district's tax bills, Wilson said. Tom Gaynor, spokesman
for the New York Metro Area U.S. Postal Service, said the problem with the tax
bill mailer is thickness."
From
NewsReleaseWire: "Stopthejunkmail.com releases their consumer opinion survey
quarterly in an effort to determine how best to reduce the environmental impact
of postal junk mail. The survey is taken anonymously by a nationwide sampling of
consumers to accurately show attitudes toward stopping junk mail. The survey
also asks consumers what they believe are direct mail’s “worst offenders” with
banks at the top of the list followed by catalogs."
From
Carolina Newswire: "Mail Your Sharps, a business unit of Plastic Recovery
Service LLC, introduces a U.S. Postal Service approved mail-back sharps program.
The mail-back sharps program is designed for syringes, lancets, needles
including those used in tattoo and body piercing studios, other sharps and small
amounts of medical waste. The mail-back program consists of a U.S. Postal
Service approved sharps collection container, ranging in size from 1.4 quarts to
5 gallons, protective bag liner, third party bar coded tracking, destruction
manifest for Regulated Medical Waste – Sharps and a postage paid U.S. Postal
Service approved return box."
Forbes
has noted: "UPS Celebrates Its 100-Year Anniversary."
The
Express-Times has reported that "Workers at international delivery company
DHL's Lehigh County distribution center will vote next month on forming a
union."
Transport Intelligence has reported that "there have been new developments
in the highly strategic Indian express market, this time involving DHL and the
state-run India Post. It appears that the two companies are in negotiations to
form some type of joint venture which would allow DHL to access India Post's
huge distribution footprint reaching right across the vast geographies
involved."
The
Associated Press has reported that "One block of Capitol Hill is plagued
with so many bird droppings that even the U.S. Postal Service says there are
days it won't deliver the mail."
According to
Precision Marketing, "When Royal Mail blamed its first operating loss in six
years on increased competition, eyebrows were raised across the industry. But
new figures from Postcomm reveal that the 15 alternative licenced postal
operators are clawing their way deeper into Royal Mail territory."
The
Australian
Broadcasting Corporation has reported that "Australia Post has rejected
union claims mail sorters are being forced to work on the APEC public holiday
next week, even though there will be no mail deliveries until the following
Monday. The Communications, Electrical and Postal Union says 600 employees are
expected to turn up for work at 40 mail centres across Sydney on Friday
September 7. The union's Ed Husic says while the workers will be paid
double-time-and-a-half, they will be faced with a "nightmare" drive home after
their night shift." See also the
Sydney Morning Herald.
DutchNews has reported that "TNT wants staff to agree to a 2.5 year pay
freeze and to make their own payments into the company pension scheme, according
to the postal group's starting position for the latest round of pay talks."
Forbes has reported that "Hermes, a Hamburg-based logistics groups, is
considering legal steps if the German Finance Ministry extends the VAT exemption
for Deutsche Post World Net AG beyond 2007, its managing director Hanjo
Schneider told Frankfurter Allgemeine Zeitung."
The
Czech Business Weekly has reported that:
With the Czech government having recently agreed on a crucial step in getting the privatization of the state-run post office under way—namely, transforming the state enterprise into a corporation—analysts are busy estimating how much capital could be raised for the public purse by the sale. Karel Potměšil, an analyst at brokerage Cyrrus, gives an approximate figure of Kč 10 billion (€ 362 million) for Czech postal services operator Česká pošta (ČP). “But it could be more, and it could be less. It depends on how big a part of the company will be sold, and what changes will occur with the company during the transformation [from a state to a privatized entity],” he said."
The Czech postal services market is the most open and developed within the Central and Eastern Europe (CEE) region, yet rivals of traditional public operators are awaiting full liberalization of the European Union postal market, says Jaroslav Aujezdský, CEO of Mediaservis, an alternative competitor to domestic state-run post office Česká pošta (ČP). Europe’s postal market was supposed to be opened up to rivals as of 2009, but the European Parliament adopted a compromise solution July 11 that would allow EU member states to delay full liberalization until 2011 or 2013. The decision is expected in October. Countries including France, Italy, Spain, Greece, Belgium, Hungary and Poland fear that rapid liberalization could destroy their public operators, resulting in weaker customer service and significant job losses. Except for Sweden, Finland and the U.K., which are fully liberalized, national postal operators in the European Union currently have a monopoly on processing mail weighing less than 50 grams.
August 26, 2007
The Boston
Globe has reported that "Six million people know the experience: You order a DVD
from the Netflix website and a day or two later it appears in a red paper
envelope. You watch the movie, mail it back, and soon another disc arrives. This
cycle happens in America 20 times every second and 1.6 million times every day,
making Netflix, the movie-rental company, a veritable postal service within the
postal service."
The Sentinel has reported that "Businesses are still counting the cost of
postal strikes and say the action has the potential to lose them thousands of
pounds.Royal Mail workers walked out in two 24-hour strikes followed by a
campaign of staggered action, in which each division was allocated a different
day to revolt in a bid to cause continuous disruption."
August 25, 2007
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FirstCoastNews has reported that "The Windy Hill community is petitioning
the U.S. Post Office to reconsider pulling home mail delivery to nearly 600
homes and businesses because of dog attacks. Earlier this month cluster boxes
were installed at several locations making home mail boxes useless."
Inc. has
reported that "A small trucking firm awarded multimillion contracts with the
U.S. Postal Service owes its drivers nearly $1.4 million in back wages, the
Labor Department said this week. Alan Berman Trucking, based in Woodland Hills,
Calif., is accused of pay violations on at least eight government contracts
worth $10 million to haul mail for post offices in Los Angeles and San
Francisco, the agency said. Investigators with the agency's Wage and Hour
Division said the company paid its drivers by the mile or trip, making them use
their own vehicles and cover fuel, maintenance, and repair costs. It also did
not provide fringe benefits required by law. As a result, the drivers' wages
fell below rates stipulated by the Service Contract Act."
The
Allentown Morning Call has reported that "The international delivery company
DHL violated labor laws by trying to hamper a union organizing campaign at its
new Upper Macungie distribution center, an attorney with the National Labor
Relations Board alleged Friday. But the company disputed the allegations, which
stem from complaints filed earlier this year by the American Postal Workers
Union."
Gulf Daily News has reported that "Bahrain has joined other GCC states in
studying the establishment of a pan-Gulf mail transportation company. The
company is aimed at streamlining and speeding up mail transportation within the
Gulf region."
August 24, 2007
PostCom Members! The latest
PostCom
issues brief (this one dealing with addressing) is now available on this
site.
The latest issue of
the PostCom Bulletin is available online. In this issue:
Attorney and former postal executive Murray Comarow examines the roles played by Congress, postal unions, postmasters, competitors, and the Postal Service in creating the conditions that now threaten the agency’s viability while emphasizing the behavior of mailers in contributing to those conditions.
In this perspective, QUAD/Graphics’ Joe Schick looks at some of the methods postal employees use to deliver your mail on time, inadvertently increasing costs, and the mailers and their service providers who abuse the process.A new paper in Pitney Bowes Future of Mail Series peers beneath the much-hyped increased adoption of electronic bills, statements and payments while systematically reviewing available research and attempting to forecast future mail volumes and the expected growth of electronic alternatives.
Federal Register: State Dept. wants UPU input. DMM Advisory: Revised Plant Verified Drop Shipment Forms 8125 and 8125-C. AT&T wins USPS contract. FEDEX, UPS shifting campaign contributions to Democrats. RPost, Postini form global alliance. Online postal delivery firm to star in new TV series.
Britain’s Postcomm threatens Royal Mail with breakup. Is Canada Post trying to ‘banish’ competitors? Deutsche Post loses Berlin business. FedEx changing partners in Russia. UPS wants China Postal Act modified. Korea post pondering bank investments. China Postal Group adding non-postal services.
A list of upcoming postal-related events.

The
DM Bulletin has reported that "Postcomm has suggested that Royal Mail's bulk
mail services could be removed from its universal service obligations in a
two-stage process."
Registration is now open for the September 19 NAMMU National Forum: 2008 Rate
Case Review Plus+ New Ideas That Matter
.
A vital session you won’t want to miss, this year’s forum mirrors the productive
format introduced in 2007, and adds even more opportunity for idea exchange. All
major postal products and services that enhance and impact your business model
are tabled. Maximum opportunity for dialogue, and discussion about new ideas
that matter to you. Registration required by September 14.
Learn more. And
be sure to register.
According
to the Kyodo
news service, "Japan Post said Friday all of some 26,000 automated teller
machines for postal savings will be taken out of service on Sept. 30 to prepare
for the privatization of postal services due to start the following day. All
postal ATMs installed at post offices and other locations across Japan need to
be suspended so as to confirm the amount of cash Japan Post holds on the last
day as a public corporation, it said. ATMs operated by financial institutions
and convenience stores tied up with Japan Post will not be affected."
The
Daily News has
reported that "Shortcomings at the top management level in the postal service
has led to several irregularities. Corrective measures will be taken immediately
after submission of the Committee Report, Posts and Telecommunications Minister
Rauff Hakeem said yesterday. Hakeem revealed this to representatives of trade
unions attached to the Postal Department during discussions to enlighten them on
matters of the interim committee report which probed into the alleged corruption
and irregularities at the Postal Department."
According to
Bloomberg, "FedEx Corp., United Parcel Service Inc. and General Dynamics
Corp. are among companies shifting campaign contributions to Democrats after
years of favoring Republicans, federal records show."
Air Force Link has
noted that "Members of the Det. 4, Pacific Air Forces Air Postal Squadron here
have been busy supporting Operation Deep Freeze 2007-08 winter flights to
Antarctica beginning in late August after more than 150 days since the last
shipment of mail to the ice station. The detachment members collected 14,000
pounds of incoming mail in more than five months for the staff of the U.S.
Antarctic Program at McMurdo Station who have wintered over and who are heading
down to the frozen continent. Severe winters prevent any flights into
Antarctica, but mail is flowing again now that winter fly-in flights have
started in late August. Loaded into tri-wall containers, the mail is palletized
eight containers at a time and loaded onto a C-17 Globemaster III for a
five-hour flight to its destination on the ice.
The U.S.
Postal Service has revised Form 8125, Plant-Verified Drop Shipment (PVDS)
Verification and Clearance, and Form 8125-C, Plant-Verified Drop Shipment (PVDS)
Consolidated Verification and Clearance. Both forms are dated July 2007. Images
of the revised forms appear on pages 77–79 in the
August 2,
Postal Bulletin.
August 23, 2007
The
Wall Street
Journal has reported that "Valassis Communications Inc. sells coupons, but
it may be Valassis's shares taking a big discount if it doesn't show payoffs
from a recent acquisition. Buying direct marketer Advo Inc. -- a lengthy,
contentious purchase that closed in March -- was supposed to broaden Valassis's
coupon business as a price war with competitors and shrinking newspaper sales
eroded profits. Like Valassis, Advo puts together marketing promotions from
multiple advertisers. Valassis delivers its bundles of coupons as "free standing
inserts," or FSIs -- the familiar pages of coupons stuffed into Sunday
newspapers. Advo delivers similar marketing promotions through the mail.
Valassis saw an opportunity for cross-selling to each company's traditional
clients."
The
American Postal Workers Union has announced that "In an overwhelming vote of
51 to 9, on Aug. 17 the National Postal Professional Nurses (NPPN) voted “YES,”
in favor of merging with the American Postal Workers Union."
Hemscott has reported that "Oesterreichische Post AG (Austrian Post) said
that it plans to shed around 1,200 jobs until the end of 2009, with some 1,000
positions being eliminated in its mail and package delivery segment. The
Austrian postal services group said that the reduction in the number of letter
carriers will take place within the previously announced framework of striking
around 400 such positions a year through natural attrition."
The
Financial Times has reported that:
Royal Mail should be split in two if it fails to modernise its business and cut costs, the industry regulator warns on Thursday. Nigel Stapleton, Postcomm chairman, told the Financial Times the priority was for Royal Mail drastically to improve its efficiency. One option would be to separate its sorting operations from doorstep deliveries.
In public relations terms, Berlin’s decision this week to impose a minimum wage in the postal sector was a masterpiece of craftsmanship, demonstrating both social responsibility and industrial patriotism. But it was also symptomatic of how German policy-making could evolve, if the agenda of the government’s conclave starting on Thursday at its guesthouse north of Berlin is anything to go by.
Direct Newsline has reported that
"Quebecor World Inc. has named Hughes Bakewell president of its direct marketing
solutions business. Bakwell most recently served as VP of marketing at Quest
Diagnostics Inc. Prior to that, he was president and CEO of Kickstart Inc., an
Internet company, and before that he was a managing director at The Integer
Group, an advertising agency. Bakewell has also spent more than a decade in a
succession of marketing and business development roles at Frito-Lay Inc.,
Hallmark Cards Inc., and Pepsi-Cola Inc."
Federal Computer Week
has reported that "Robert Otto, the U.S. Postal Service’s chief technology
officer and a vice president, will retire Oct. 1."
Transport Intelligence has reported that "DHL has joined the international
relief effort to help victims of the earthquake disaster in Peru. The DHL
Disaster Response Team (DRT) for the Americas region is supporting the National
Civil Defense System at the Pisco Air Base."
Network World has reported that "RPost on Monday announced its e-mail
registering service will be integrated with Postini’s messaging security hosted
service. As per the agreement, Postini’s 35,000 customer sites can immediately
take advantage of RPost’s proof-of-delivery service as part of Postini’s
collection of service offerings, according to RPost officials. RPost provides
users with proof of an e-mail’s content, receipt, and delivery date, which holds
up as admissible evidence in court, officials say. Sending a message with
RPost’s Registered E-mail service is much like sending registered mail, offering
proof that an e-mail was sent, when it was sent, who the recipient was, and what
the original content of the e-mail was. In June, RPost added encryption, PDF
conversion, data-leak protection and the ability to generate electronic
contracts to the service."
From
WebWire:
"Parcel2go, the UK and USA delivery and collection postal service, are now
offering a 10 percent discount for eBay users."
The
Economic Times has reported that:
Private courier companies have approached telecom minister A Raja demanding that the government hold fresh consultations with the industry before finalising amendments to the Indian Post Office Act. Private courier companies are opposed to the proposed amendments to the Post Office Act as it bars them from carrying letters and parcel below 150 gm and also seeks to limit foreign direct investment in the sector to 49%. The Bill also envisages that private courier companies who want to deliver letters below this slab (150 gm) be imposed a price multiple, which is five times more than the rates charged by India Post or 2.5 times of Speed Post rates.
Deutsche Post — one of the largest postal, express & logistics entities in the world and the owner of the DHL brand globally — is looking at developing a strategic partnership with the Indian postal system. Through this venture, both postal authorities are aiming at strengthening their global business operations. The entities are in early stages of discussions to ascertain specific segments, like last mile delivery, sharing infrastructural facility & technological innovations in which they could strike a partnership and initiate operations.
August 22, 2007
From the
Federal Register: "The Department of State solicits ideas and suggestions
for proposals that the U.S. Government could submit to the plenipotentiary
Congress of the Universal Postal Union (UPU) to be held in Nairobi, Kenya from
August 13 to September 3, 2008. The deadline for submission of proposals by an
individual UPU member country is February 12, 2008. Written suggestions for
draft proposals for the Nairobi UPU Congress should reach the Department of
State by September 30, 2007. Your suggestions may be sent to the Department of
State by one of the following methods: E-mail:
DelehantyDM@state.gov or
WoodCS@state.gov. Fax: (202) 647-8902.
Mail: Mr. Dennis Delehanty, Foreign Affairs Officer, Office of Technical
Specialized Agencies (IO/T), Bureau of International Organization Affairs,
Department of State, 2201 C Street, NW., Room 5333, Washington, DC 20520."
HR.BLR.com has reported that
"The U.S. Department of Labor has filed an administrative complaint against Alan
Berman Trucking, seeking $1,369,870 in back wages for 80 current and former
employees. The complaint also seeks to prohibit the company from receiving
government contracts for a period of three years. Alan Berman Trucking had some
$10 million in mail hauling contracts with the U.S. Postal Service subject to
the Service Contract Act (SCA) during the time period investigated, providing
services from postal facilities in the greater Los Angeles and San Francisco Bay
areas."
Reuters
AlertNet has reported that "A minimum wage for the postal sector has been
agreed in a deal to end the domestic mail monopoly, but the SPD insists on a
national minimum wage. The CDU is strongly against the idea."
CBC News has reported that "A private member's bill that would make it free
to send letters to Canadian Forces personnel serving overseas has stalled, and
the New Brunswick MP who sponsored the bill wants to know what the holdup is.
Saint John Liberal MP Paul Zed introduced the bill to amend the Canada Post
Corporation Act in April. Not only has Canada Post not responded to his calls
for action on the matter, he says, but House of Commons leader Peter Van Loan
struck down the bill three times in three weeks. Zed said it doesn't make sense,
because he feels the majority of parliamentarians support the bill. "
CEP News (Courier-Express-Postal), published by the MRU Consultancy, has reported that:
Royal Mail will have to close its business year 2006/2007 with an operating loss of at least 17.6 million euros. For the previous year, in contrast, profits of almost 290m euros were reported.
The Arbeitgeberverband Postdienste (employers’ association for postal services) has been set up in Bonn in time for the upcoming introduction of minimum wages. The association is an initiative of Deutsche Post. The post, along with a whole range of affiliated postal businesses, belongs to the new committee, which plans to take up negotiations with ver.di immediately.
The structure of the Polish postal market is becoming increasingly stable. This a finding of the study of the postal market presented by the Polish regulator, Office of Electronic Communications,
The Russian post has big plans. This year the business will invest an equivalent of 273m euros in modernising its infrastructure and its network, as well as in automating its freight process. According to Russian media reports, the investments are a result of the 26 per cent increase in turnover, which Russian Post achieved in the first half of 2007 (some 863m euros).
In future, customers of the Chinese express operators will be able to claim compensation for consignments not delivered on time.
According to UPS CEO Mike Eskew, manufacturer-consumer relationships have changed radically. Whereas the road from the manufacturer to the customer used to be virtually a one-way street, the transport service is nowadays run according to very diverse customer demands. Mr. Eskew claims that this has created unprecedented possibilities for the integrator.
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The Swedish post is expanding in Norway. Having snatched the custom of the Swedish mail order business Ellos from Posten Norge AS, Posten Sverige AB is now spreading itself out on the Norwegian parcel market.
The Norwegian Post has announced a strict economy drive.
Belgian unions have accused the post’s CEO Johnny Thijs of a witch-hunt against sick employees.
TNT announced on Tuesday that, so far, 80 per cent of the planned 400meuro share buyback has been realised.
The German trade union ver.di last week criticised the decision to award the PIN Group the job of delivering the official post for the Berlin Senate.
TNT Post has gained further ground in its competition with Royal Mail.
Since 1 August, EMS Russian Post, the express subsidiary company of Russian Post, has offered a faster delivery service on express letters within the Russian Federation.
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.)
ThisIsLocalLondon has reported that "Royal Mail workers have warned the
suspension of industrial action may only be temporary if bosses continue to push
ahead with changes to working practices and conditions."
Expatica has noted that rolling strikes continue in Belgium as the failure
of progress in labor talks continues.
The
Financial Times has reported that "The German government could introduce a
minimum wage in postal services next year in a move set to help Deutsche Post,
the former monopoly, ahead of the liberalisation of the market. The decision
comes as the cabinet prepares for its mid-term retreat in Meseberg, north of
Berlin, on Thursday, where it will map out its policy programme for the next two
years. Economists have criticised the meeting’s draft agenda for focusing too
much on potentially costly social policies and protectionist measures at the
expense of structural reforms. Analysts said the minimum wage move reflected the
ruling parties’ concern about their lacklustre popularity ratings and Berlin’s
gradual embrace of a more hands-on industry policy."
The
Globe & Mail has reported that "More than twice as many letter carriers have
been bitten by dogs this summer in British Columbia than last and Canada Post
wants owners to know they're responsible for their pets."
August 21, 2007
From
PR Newswire: "AT&T Inc. has announced that AT&T Government Solutions has
been awarded up to $22 million under the Postal Advanced Telecommunications
Network (PATN) contract. AT&T will upgrade 1,800 United States Postal Service
(USPS) facilities with its Enhanced Virtual Private Network (EVPN) service."
From
Marketwire: "Pop N Go, Inc.
has announced the test of our popcorn vending machine program with the U.S
Postal Service at their South New Jersey Processing and Distribution Center.
Frank Collepardi, President of Franco's Snacks, stated, "We service over 1,000
employees in this center and based on the response to Pop N Go's popcorn machine
we are looking forward to expanding into many other facilities."
The
Orange County Register has reported that "U.S. Postal Service officials
announced Monday that they have scrapped plans for a proposed nine-acre mail
processing facility near the city's northern gateway, following two weeks of
heated opposition from residents and city leaders. The sticking point for the
project was a study determining that an overpass bridge was needed to cover a
rail line on the property, postal officials said. The bridge would have required
coordination with the Public Utilities Commission and each of the railroad
operators."
You can find
the latest UPS income statement on
Yahoo!.
CFRA.com
has reported that "Canada's border guards are looking for some high-tech help to
read the mail. The Canada Border Services Agency has put out a call to
manufacturers for leading edge equipment that will automatically screen
thousands of packages for weapons and explosives. The devices would be used to
monitor the flow of suspicious munitions into Canada's major postal facilities."
The
New York Times has noted that "Competing for consumers who spend less time
browsing to find the perfect card and who increasingly communicate with friends
electronically, the two companies — which dominate the $7.5 billion industry —
are appealing to women who, according to their research, like humorous takes on
their everyday travails. They also purchase 80 percent of all paper greeting
cards. While the paper card market is declining, it is still five times as large
as the e-card market, according to the Greeting Card Association, a trade group.
Ninety percent of United States households still buy paper greeting cards, and
the average household buys 30 a year, the association said."
9News.com
has noted that "U.S. Postal Inspectors hope you will recognize a man they say is
using counterfeit credit cards to steal stamps out of automated postal centers
at post offices in Denver and Boulder. Postal inspectors say this man used
numerous counterfeit credit cards to make transactions at the automated stamp
machines. The robber visited a number of Denver and Boulder post offices between
January and March 2007. Postal officials think he is part of a larger scheme to
steal stamps and sell them on the street or on the Internet."
From
eMediaWire:
"According to ScanMyPhotos.com, a division of 30 Minute Photos Etc. (which began
in 1990 as a traditional retail photo center in Irvine, Calif.), they have also
begun receiving its order of 50,000 co-branded United States Postal Service
Priority Flat Rate boxes. Working in partnership with the USPS, ScanMyPhotos.com
is able to provide super-fast turnarounds. According to Mitch Goldstone,
President and CEO of ScanMyPhotos.com, "the newly imprinted, co-branded boxes
help celebrate our commitment and enhances our credibility for the new business
model we built to efficiently preserve analog pictures in today's all digital
world."
Politics.co.uk has reported that "Politicians have welcomed Royal Mail's
decision to allow relatives of troops serving in Iraq and Afghanistan to send
parcels for free. Royal Mail is working with the British Forces Post Office to
arrange special arrangements for the busy posting period up until Christmas and
will confirm formal arrangements in the next few days. Head of the army general
sir Richard Dannatt, who had called on Royal Mail to introduce the free service,
said he was delighted at the move." See also
The Mirror.
Bloomberg has reported that "German postal workers may be subject to a
minimum wage from early next year after the ruling coalition parties reached a
late-night deal to extend basic pay levels, Labor Minister Franz Muentefering
said.
Arabian Business has reported that "A pan-GCC mail transportation company is
likely to be set up to carry postal mail and courier parcels across the region,
the UAE’s postal services company said. The company, which was first proposed at
a meeting of GCC postal officials last May, would facilitate package delivery
among the different postal systems of the six GCC member states." See also
AMEInfo.
Xinhua has reported that "China's first national museum of postal artifacts
is expected to open in Beijing on Wednesday, according to its owner China Postal
Group (CPG). The China Museum of Postal Services and Stamps will house almost
10,000 exhibit items in a four-story exhibition hall with a floor space of 7,500
square meters, and a warehouse with a floor space of 6,000 square meters. The
country's postal services can be traced back to 400 B.C., when post houses were
set up nationwide by imperial governments to deliver letters and documents,
mostly for military and diplomatic purposes."
AllAfrica.com has
reported that "Posta Uganda, the country's traditional postal service provider,
is sliding out of business after taking damaging knocks from new sophisticated
players amid severe under funding from the government. "Posta needs
re-capitalisation to become profitable," the former Posta Uganda Board
Chairperson Aisha Lubega said last week. Her statement underlined the deep
seated precarious situation under which the company is operating. Almost ten
years after its formation, the company has failed to break even despite initial
government promises to subsidise it."
August 20, 2007
Be sure to
check out the PostInsight web site, where
you can find a summary of the findings and strategic conclusions of the latest
paper
in the Future of Mail Series from Pitney Bowes. This paper is entitled Bills,
Statements and Payments – Paper and Electronic Delivery. The complete report is
available at
http://postinsight.com/files/EBPP_Paper_Aug07_AFu.pdf.
The
Economic Times has reported that "After putting the issue on the backburner
for a couple of months on account of strong protests from private courier
players, the ministry of communications under telecom minister A Raja has now
revived work on amendments to the controversial postal bill. Private courier
companies are opposed to the proposed bill as it intends to prevent them from
carrying any letter or parcel below 150 grams and also seeks to limit the
foreign direct investment in the sector to 49%. The bill also envisages that
private courier companies who want to deliver letters below this slab (150
grams) do so at a price which is five times more than the rates charged by India
Post or 2.5 times Speed Post rates."
August 18, 2007
The
Orange County Register has reported that "After two weeks of heated debate,
the council Tuesday is expected to weigh in on a U.S. Postal Service backed plan
to construct a 9-acre mail sorting facility at the northern gateway to the city.
While postal officials say the facility is needed to meet growing demand for
mail service in South County, many residents and community leaders fear it would
destroy the rural character of the area."
MediaWeek has reported that "Emap has handed its magazine postal account to
TNT Post, marking the Royal Mail rival’s first win in the sector. The 12-month
contract will involve handling up to six million items across its consumer and
business-to-business titles using TNT’s Premier service."
The
Daily Mail has reported that "Royal Mail is paying out more than £1million a
month in compensation for its failures - including settling vast numbers of
claims for lost and damaged items. More than 800 claims a day are paid out for
letters and packages that have been lost. There are another 80 a day for damaged
parcels and 150 per day over delayed items. The £13.6million annual bill to
settle claims represents the tip of the iceberg of Royal Mail failings because
the company has become notorious for refusing to pay up over complaints."
In a letter
to the editor, Communication Workers Union president
Billy Hayes took the Financial Times to task for an earlier
editorial. He wrote: "You paint the usual picture of letters being replaced by
e-mail. This ignores the growth of letters alongside the internet. The
complementary nature of different forms of communication in society and industry
appears too complex a concept for many. If this is simply a declining industry,
why are foolish competitors lining up to take a piece of the vanishing pie? Of
course, privatisation is your ultimate solution. Our view is different. We
favour making the industry more responsive to customer demand through a process
of tailoring services to customers, and involving authority for decision-making
in line with local needs."
ZeeNews has reported that "Post offices in metros are set for a major change
with the Government deciding to introduce new facilities like forex counters,
cargo services, access to instant money order and other revenue generating
services."
August 17, 2007
The latest issue of
the PostCom Bulletin is available online. In this issue:
The Postal Regulatory Commission released its proposed regulations for establishing a modern system of ratemaking this week. In it, the PRC lays out the basic elements of how the new system will work and provides comprehensive proposed regulations to move the USPS’ ratemaking system for market-dominant products away from the old cost-of-service system to one based on a price cap.
The Postal Service held a market fact-finding session this week to provide interested parties an opportunity to ask questions and seek clarification around the Postal Service’s July 25 request for information on a time-definite surface network. Postal officials briefed attendees on the operations information in the RFI and clarified certain issues to help potential suppliers respond effectively to the request.
PostCom Vice President Kate Muth stirs of pot of fresh ideas in her thought-provoking postal perspective, which first appeared in the July/August issue of Mailing Systems Technology magazine.
Congress asks GAO to investigate executive bonuses. Mexico, U.S. sign postal agreement. UPS system helps U.S. Air Force track mail in South Korea.
More labor action against Britain’s Royal Mail. Deutsche Post CEO accused of ‘fear mongering’ over competition remarks. It was a good six months for Austria Post. Germans share in U.S. mortgage market disaster.
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.
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Yahoo! has reported that "News audiences are ditching television and
newspapers and using the Internet as their main source of information, in a
trend that could eventually see the demise of local papers, according to a new
study."
According to
LawFuel, "IBM
Corporation and PriceWaterhouseCoopers have both agreed to pay the United States
more than $5.2 million to settle allegations that the companies solicited an
provided improper payments and other things of value on technology contracts
with government agencies, the Justice Department announced today. IBM has agreed
to pay $2,972,038.50, while PWC will pay $2,316,662. According to the complaints
against the companies, IBM and PWC knowingly solicited and/or made payments of
money and other things of value, known as alliance benefits, to a number of
companies with whom they had global alliance relationships. The government
intervened in the actions because the alleged alliance relationships and
resulting alliance benefits amount to kickbacks, as well as undisclosed conflict
of interest relationships in violation of contractual provisions and the
applicable provisions of the federal acquisition regulations."
From the
Federal Register: "Representatives from Time Inc. will present a briefing on
Monday, August 20, 2007, beginning at 3 p.m., in the Postal Regulatory
Commission's main conference room. The briefing will address delivery service
measurement for certain Periodicals mailings. The briefing is open to the
public."
Transport Intelligence has reported that "FedEx appears to have lost its
present round of litigation over wages rates for its drivers. According to its
opponents in the litigation, the California Court of Appeal has upheld the trial
court's decision finding FedEx Ground drivers to be employees and not
independent contractors, thus denying the appeal of FedEx in the landmark
Estrada vs. FedEx Ground Package System, Inc. The appeals court also determined
that the FedEx Ground drivers were entitled to reimbursement for approximately
$6 million in additional expenses, bringing the total damages to about $11
million for 200 drivers."
As
Steve Barr of the Washington Post has noted, "Here's a regulator running
ahead of schedule -- the Postal Regulatory Commission. The commission this week
released a 160-page proposed framework for setting mail rates, beating the
deadline set by Congress by 10 months."
ABC12.com has reported that "Around 180 Flint postal jobs could move to
Pontiac. The United States Postal Service is proposing the move as part of a
consolidation plan. Workers are not happy about this proposal. That's why they
held an informational picket day, saying this consolidation would be
unnecessary."
From
Newswire Today: "As the
world’s largest exhibition and conference for printing, finishing and packaging
products, GRAPH EXPO 2007 will feature hundreds of vendors displaying their
latest equipment and products. But only at BÖWE BELL + HOWELL’s booth will
attendees see a unique Connectivity Showcase featuring what is expected to be
the largest multi-vendor online connectivity ever displayed at a print
tradeshow. This “live and connected” environment will feature Web-based tracking
of vendors’ equipment on the show floor in real time, illustrating their open
architecture and integration capabilities. A leading provider of document
management and postal solutions, BÖWE BELL + HOWELL will prominently occupy
Booth No. 600, located just inside the main tradeshow entrance at GRAPH EXPO
2007."
Reuters
has reported that "African postal services must diversify into lucrative
businesses like money transfers and direct marketing or lack of government
support will force them out of operation, the head of Posta Uganda said on
Friday. National post organisations are suffering worldwide as volumes of
traditional letters fall and more people use e-mails, the Internet and mobile
telephones to communicate. In Africa, many rural post offices are little more
than dilapidated shacks. But often they are the only network capable of reaching
the majority of the population who live in villages. Some believe they could
also be used to bring new electronic services to millions of customers."
August 16, 2007
According to
24dash, "The Royal
Mail is losing almost 2p on every letter it delivers for rival firms, new
financial figures have shown."
The
Nanaimo News Bulletin has reported that "To many, the public library is a
sacred institution – like motherhood and apple pie, or rural mail delivery. But
in January a World Trade Organization ruling takes effect that would block
Ottawa directly subsidizing postal rates for libraries. Canada Post would likely
start charging libraries the full parcel rate – 13 times what it currently
charges them to send materials to in the mail."
The
Financial Times has reported that "Royal Mail slipped into the red for the
first time in six years on its first and second- class and bulk business mail,
incurring an operating loss of £12m last year after a profit of £197m in
2005-06. The weak financial performance, revealed in its regulatory accounts
yesterday, underlines the challenges facing the company as it seeks to cut costs
and raise productivity."
According to
The Mirror, "Royal Mail could face a £350million fine after the recent
strikes left services in turmoil."
According to
the Mackinac Center for
Public Policy, "At 41 cents per stamp, paying a bill, sending a birthday
card or keeping in touch with a pen pal can be pretty expensive. Postal fees
continue to rise, but deliveries aren’t faster, mail isn’t safer and the lines
at the Post Office don’t get any shorter. All this leads one to ask, "How can
such an inefficient company stay in business?" The answer, of course, is by
force of law: Competing with the United States Postal Service in the delivery of
first-class mail is illegal. The Post Office has held its statutory mail
monopoly since our country’s infancy, when government officials contended that
private companies could not handle the awesome responsibility of delivering the
mail. But the truth is that private mail services have existed all along and
have generally lowered prices, introduced innovations and intrepidly challenged
the government’s statutory control of the mail delivery market."
New Delhi News has
reported that "State-run India Post is seeking to beat growing competition from
private courier companies by acquiring its own aircraft that would carry mail by
the end of this month."
Easier Finance has reported that "Post Office Ltd and British Gas have
signed a new deal running to the end of December 2010, which allows British Gas
customers to continue to benefit from the convenience of paying for and towards
their Gas and Electricity at Post Office branches."
August 15, 2007
The
Postal Regulatory
Commission (PRC) today published
proposed regulations to implement a modern ratemaking and classification system
for market dominant and competitive mail products. Comments to the
proposed regulations are due by September 14,2007, and reply comments are due by
September 28,2007. The proposed regulations are available on the Commission's
website, www.prc.gov, and will be available in the Federal Register. The
proposed rulemaking consists of three parts: regulations related to compet itive
products; regulations related to rate adjustments for market dominant products,
includinq the formula for calculation of the rate cap under which annual
adjustments may be made; and establishment of a Mail Class ification Schedule,
which categorizes products as either market dominant or competitive. See also
the
PRC press release.
Press
Release: "Winn Solutions has over a decade of experience in the software
tracking industry combined with todays leading edge technology, Microsofts .NET
Framework, we have created the first hosted, web-based tracking system: WebWITS.
Please read our overview that explains the benefits of a web-based system such
as WITS when compared to a web-enabled system. Click here to download the
white paper from WINN Solutions."
From
Business Wire: "Postage, which already represents one of direct marketers’
largest expenses, has just become even more costly in the wake of recent rate
increases. To help mailers mitigate the impact of these increases,
Transcontinental Direct offers a postal optimization solution to maximize USPS
postage and destination-entry discounts. Called Postedge, the company’s Standard
Class postal optimization service includes professional presorting, commingling,
and logistics services designed not only to take maximum advantage of available
USPS discount incentives, but also to improve the overall consistency and
predictability of in-home delivery."
CEP News (Courier-Express-Postal), published by the MRU Consultancy, has reported that:
After Deutsche Post’s CEO Klaus Zumwinkel talked about a distortion of competition in the German postal market and demanded the introduction of a minimum wage for the industry, politicians have responded by accusing Mr Zumwinkel of "fear mongering and pessimism".
Analysts’ expectations were fulfilled: Österreichische Post was able to achieve growth in both turnover and result during the first half of 2007.
In an interview with the CEP News, Spring Global Mail confirmed that international operators are struggling in Canada at present.A spokesperson for the Royal Mail/TNT joint venture stated that Canada Post was responsible for creating the greatest difficulties.
Finland’s post Itella enjoyed a growth period during both the second quarter and the first half of 2007.
According to media reports, FedEx has found a new service partner in the Russian market. Instead of long-standing partner Emex¸ Major Express will operate in the Russian market on behalf of FedEx.
US-based investment firm Allied Capital Corporation has taken over Worldwide Express Inc., a wholesaler for DHL consignments in the USA.
Leading United Parcel Service managers have demanded improvements to the Chinese Postal Act.
PIN AG has snatched a contract with the Berlin local government from under the nose of Deutsche Post.
The MRU, founded in 1992, is the only consultancy in Europe, which has specialised in the market of courier-, express- and parcel services. For large-scale shippers and CEP-services in particular, the MRU provides interdisciplinary advice for all major questions of the market, as there are for example market entry, product design, organisation, and EDP.To learn more about the stories reported above, contact CEP News. (We appreciate the courtesy extended by CEP News to help whet your appetite for more of what CEP offers.)
The
DM Bulletin has reported that "Shoppers are increasingly using catalogues to
pick a product before going online to place their order, signalling a new trend
dubbed 'flick to click' shopping, according to research from Experian."
According to
The Day, "never mind the rain, snow and gloom of night — porch steps alone will
stop the mail." See also the
Norwich Bulletin.
Dow Jones has reported that "the Mexican government plans to upgrade the
country's much-criticized postal service and signed an agreement Tuesday with
the U.S. Postal Service to help in the process. Communications and Transport
Minister Luis Tellez said the Mexican Postal Service, or Sepomex, has been
neglected for years, while the USPS is "an example of modernity, efficiency and
quality." Under the agreement signed Tuesday, Sepomex staff will visit U.S.
facilities to analyze procedures and equipment, and the two will also cooperate
to improve cross-border services."
Potomac News has reported that "the work environment at the Harry J. Parrish
Post Office in Manassas has disintegrated, according to carriers, clerks and
union representatives. And they don't want to take it anymore."
According to
Marketing
Sherpa, "Digital print capabilities have made it possible so you don’t have
to send out the exact same postal mail piece to each of your prospects. In fact,
you can arrange products based on past purchase behavior and other data or even
change the size of your mailer. Reader’s Digest Canada has results from a new
mailing where they tested four catalogs with varying levels of customization.
Conversions increased as much as 74%. "
The
Financial Express has noted that "Liberalisation has contributed to India’s
transition from dismal growth rates to the present rate of 9%, among the highest
today in the world. After decades of being served sub-standard goods, the Indian
consumer is experiencing the benefits of competition in sectors such as
automobiles, consumer electronics and durables, telecommunications, insurance,
and so on. Yet unfortunately, reform remains to be completed in important areas,
for example coal, oil, gas, banking and posts. Old habits die hard and there is
a tendency to retain controls or power of market intervention, as reflected in
some recent ministerial proposals such as the Postal Amendment Bill that seeks
to give a wide monopoly to the Post Office and impose regulatory controls on
private service providers, or the Warehousing Bill that seeks to actually
regulate warehousing rates and conditions! "
BOPA News has noted that "Botswana finance assistant minister Duncan Mlazie
has said that "postal services constitute a very important part of peoples daily
life all over the world."
August 14, 2007
From
PRDomain: "Variable data printing (VDP) is the star of a new DVD aimed at
educating marketers on the power of personalized print communications. Sponsored
by Kodak, the DVD explores the components of a successful VDP program through a
series of expert interviews and detailed analysis of real world case studies
from a variety of industries. Advertising Age magazine, Printing Impressions
magazine, the U.S. Postal Service, Pitney Bowes and Kodak collaborated in the
production of the DVD."
Mad.co.uk has reported that "Royal Mail is promoting the combined use of
direct mail and digital campaigns after its latest research found it can
increase customer spend by almost 25 per cent. The postal operator’s consumer
study into the best uses of different advertising also reveals nearly 70 per
cent of respondents believe direct mail supports online advertising."
Traffic World
has reported that "How the UPS and Teamsters deal with the pension fund will set
the tone for how both will handle pensions and each other for decades to come. A
UPS pullout from the fund would reverberate across the parcel delivery and
trucking industries. Union activists worry that if one of the largest unionized
companies pulls out of a multiemployer plan, others will follow."
Direct Newsline has
reported that "while postal list costs rise consumer and business-to-business
e-mail list prices have declined over the last year, while the cost of magazine
and newsletter postal lists have risen $6/M and $5/M respectively, according the
Worldata Summer 2007 List Price Index."
Press
Release: "If you will be attending Graph Expo ’07, visit
Window Book at Booth #2297 where they
will be showcasing its new mailing product, Postage Statement Form Filler
(PSFF). PSFF is an easy and cost-effective solution for quickly producing
printed USPS Postage Statements replacing hand-written mailing statements.
Postage Statement Form Filler allows users to easily create computer generated
Postage Statements, when submitting them handwritten is the only other option.
The new Postage Statement Form Filler will generate the following statements and
forms for processing your mailings: 3541, 3600-R, 3602-R, 3602-N, 3605-R, 3606,
3700, and 8125s. Fill out your statements faster and more accurately."
PostalMag.com has reported that "Among the
items in the Proposed National Agreement between the NALC and USPS is a
memorandum on FSS work methods. FSS could add another (third) bundle to
carriers' daily workload (1. carrier-cased letters and flats; 2. DPS letters; 3.
DPS flats). According to the memorandum, a Joint Task Force comprised of four
members from the NALC and four from the USPS will "explore alternative work
methods necessary for handling mail in an FSS environment." Though the
implementation of FSS will result in greater efficiencies in the sorting of
mail, the implementation could make the daily work of carriers harder in that
carriers will probably have a third bundle everyday, instead of just on circular
(ADVO, etc.) days. (Still not clear is how circulars will be delivered in an FSS
environment.) Also, carrier routes will be adjusted longer as carriers will need
less office time to sort mail."
August 13, 2007
Newbury
Today has reported that "the postal strike by Royal Mail sorting office and
delivery workers, which has disrupted postal services in the Newbury area, has
been called off until September. Counter staff remain set to continue their
industrial action, however. The postal workers union CWU has issued a statement
about their dispute with employers Royal Mail, saying both sides were committed
to reach an agreement by Tuesday, September 4. Delivery and mail sorting workers
returned to work after union bosses signed up to a pledge that during this
period CWU will not serve notice of any strike action, with all industrial
action suspended." [Who the blazes is in charge here? Does anyone speak for
the union as a whole?]
The
Washington Post has reported that "Bonuses for federal executives are
getting a congressional grilling. Sen. Byron L. Dorgan (D-N.D.) has asked the
Government Accountability Office to investigate possible misuse of the bonus
program for federal executives. In fiscal 2006, two-thirds of federal executives
received bonuses, and at five federal agencies, more than 90 percent of the
executives collected bonuses, he pointed out. In announcing the GAO probe,
Dorgan said agencies, rather than rewarding only their high-performing
executives, seemed to believe that all of their executives were above average,
"a lot like Garrison Keillor's Lake Wobegon." Dorgan said he was concerned by
reports that some executives received bonuses when their agencies had failed to
meet certain performance standards."
Stars
and Stripes has reported that "A new tracking system — the first at an Air
Force base in the Pacific — is helping postal workers at Osan automate
registered mail and package deliveries. The system, called UPS Trackpad, is a
United Parcel Service system that uses bar codes and computer scans to track
certain mail inside the post office."
The
Detroit Free Press
has noted that "As airline delays mount and more bags are mishandled, it's not
an idle worry. About one of every 130 domestic airline passengers had luggage go
astray during the first four months of 2007, according to the U.S. Bureau of
Transportation. That's the highest since last summer's airline
bankruptcy-inspired delays. To be on the safe side, you can ship your luggage
ahead. Around for about eight years, luggage delivery services are being used
more as airlines crack down on luggage allotments. While not all guarantee your
bags will arrive, most ship several days ahead so you're likely to get delivery
on time. After surveying prices and policies, and being the cheapskates we are,
the Detroit Free Press tried the cheapest method of mailing a small suitcase
fast, the good old U.S. Postal Service (USPS)."
The
Financial Times has reported that "Horror stories about the state of Royal
Mail abound. But there is a good chance that these tales are not circulating in
the form of a letter, stamped and mailed at a post office. That loss of market
share lies at the heart of Royal Mail's problems: its operations are a shambles
- not entirely its own fault - and the company is facing ever more competition
it is not equipped to handle."
InTheNews has reported that "Thousands of Post Office workers are today
staging a pay strike, which comes after separate industrial action by postal
workers was called off last week. Today's strike, the latest in a series of
walkouts staged by workers at crown post office branches, comes after union
leaders called off separate industrial action by postal workers on Thursday
after agreeing to further talks with Royal Mail bosses over a row concerning pay
and conditions."
The
Philippine
Information Agency has reported that "the country will host the 14th
Association of Southeast Asian Nations Postal Business Meeting (ASEANPost) on
September 4 to 6, 2007 that will be held in Makati City."
August 11, 2007
eTrucker.com
has reported that "A former FedEx owner-operator told a congressional panel that
the company had misclassified him as an independent contractor."
The
Daily Mail has reported that "Almost two-thirds of homes and businesses will
be condemned to afternoon deliveries under fiercely contentious Royal Mail
plans. The proposal, hidden away in a consultation paper, signals yet another
downgrading of a once first-class postal service. It will infuriate consumer
groups and small firms who see morning deliveries as their lifeblood."
The
Times of Malta
has reported that "The Union Haddiema Maghqudin has met Investments Minister
Austin Gatt to discuss the future of Maltapost employees in connection with the
company's privatisation."
Zawya has reported that "Global leader in international express, overland
transport and air and ocean freight, DHLDHL has decided to transfer two of its
main aviation services centres from Africa and Europe to the kingdom. Operations
of its Harare and Brussels centres would be merged and shifted to Bahrain to
serve the Middle East, North Africa and Eastern Europe segments. Bahrain is a
major hub for the cargo leader's Middle East operations with its regional
distribution centre based at the Bahrain International airport."
August 10, 2007
The latest issue of
the PostCom Bulletin is available online. In this issue:
Postal Service Chief Financial Officer and Executive Vice President Glen Walker told the Board of Governors at its most recent open meeting that the Postal Service’s income from operations through the third quarter of the fiscal year was $1.225 billion, a decrease of $430 million when compared to the same period last year.
The Postal Service has told its Board of Governor that it has had a banner third quarter around service performance, as measured by the External First Class Measurement System (EXFC), which measures the delivery performance of collection-box First Class Mail.
The Postal Service filed two new requests with the Postal Regulatory Commission in the past week – one seeking a functionally equivalent NSA and the other a new baseline agreement. The Bradford Group, a seller of collectibles and gift items, is seeking an NSA modeled after the Bookspan agreement from last year. (It is Docket MC2007-4.) The new baseline NSA is with Life Line Screening, which seeks declining block rates for Standard Mail letters for selling healthcare screening services to a nationwide customer base (MC2007-5).
The milestones associated with the Bank of America negotiated service agreement (NSA) warrant a fresh look at the Postal Regulatory Commission's standards for review of proposed NSAs, Bank of America Corp. (BAC) says in its initial brief submitted last week in its proceeding before the commission, MC2007-1.
The Mail Order Association of America, Advo, Inc., Valpak Direct Marketing, and the Greeting Card Association submitted comments to the Federal Trade Commission regarding the different application of laws to the United States Postal Service and private competitors.
DM News postal commentator Cary Baer shares some thoughts about feedback he has received from readers.
The U.S. Postal Service and one of its largest unions, the National Association of Letter Carriers (NALC), just reached a tentative agreement on a new five-year contract.
USPS proposes making premium forwarding service permanent. United Parcel Service of America Inc., Atlanta, and Teamsters Central States, Southeast & Southwest Areas Pension Fund, Rosemont, Ill., have reached an agreement on the company's potential withdrawal from the $20.7 billion fund, A federal judge in South Bend this month will weigh whether lawsuits filed by independent contractors against FedEx Corp. in two dozen states should be combined. The Chicago District of the U.S. Postal Service announced that it had improved its delivery rate through reforms a few months after the U.S. postmaster slammed the city for having the worst mail delivery in the nation. FedEx Kinko's, a unit parcel delivery group FedEx Corp. (FDX), plans top open 300 new offices and print centers in the U.S. in fiscal 2008 and 20 new centers outside the U.S. According to the Flint Journal, nearly 150 Flint postal jobs could head south under a plan revealed to local employees.
Deutsche Post AG defenseless against invaders into its lucrative home turf as the rest of Europe backtracks on promises to throw open national mail markets. DHL Express has sold its Dutch subsidiary Dedicated Distribution Services (DDS) and its Belgian subsidiary Van Osselaer Pieters Colli Service (VOP) to Österreichische Post AG (ÖPAG), the Austrian postal service. U.K. postal workers are due to go on the next phase of their roll-out series of strikes as the bitter row over pay and jobs remains deadlocked. China Post Group will set up a life insurance unit. UPS CEO Michael Eskew believes that China should improve transparency of a new law governing the country's $6 billion-a-year express delivery market. Osterreichische Post AG (Austrian Post) said its net income for the second-quarter was up. Sri Lanka is seeking to upgrade its postal services. The Postmaster General of the Nigerian Federation, Mallam Ibrahim Mori Baba, has asked employees of the Nigerian Postal Service (NIPOST) to brace up for the challenges of global competition in the discharge of postal services, saying that was the only way to catch up with the state of postal services in other regions of the world. The Italian competition regulator has opened an investigation into possible abuse of a dominant market position by the country's leading postal services operator, Poste Italiane. Other international postal news you can use.
From The Mailbag
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As
Air
Cargo World has noted, "As the U.S. Postal Service faces the growing
challenge of consumers' move to electronic communications, revenue in
the third quarter grew just 2.9 percent. USPS got a boost for its
competition with private parcel carriers from its scores in on-time
performance. The scores were at all-time highs for all three categories
tracked. "
The
Financial Times has reported that "Royal Mail should be allowed to
increase the price of a second-class stamp from 24p to 29p by 2010 to
help its “deteriorating financial position”, the postal operator’s
regulator proposed on Thursday." See also
The Independent.
According to
Card Guide, "A number of banks and credit card companies in the UK
have stated that they intend to be sympathetic with customers who may
have suffered as a result of the postal strikes in terms of payments
coming in late because of the postal delays. Although banks have
suffered a fair amount of bad press lately some of the leading banks and
credit card companies stated that they would take the postal strikes
into account when it came to customers' accounts."
DM
News has reported that "In light of the recent postal rate hike and
advances in printing technology, the transpromo trend has quickly
accelerated. Transpromo is a technique that combines obligatory
transactional customer communication with revenue-generating promotional
offers."
The Rio Rancho Observer quoted one local official as saying:
"Sometimes you wonder how can a mailman put in a wrong box on a wrong
address so many letters, including statements of the credit card," he
said in an interview the previous day. "Something is not working right
in the back of the post office. Something is dysfunctional."
August 9, 2007
The
U.S. Postal Service has filed with the Postal Regulatory Commission
a paper by
one of its consultants, James I. Campbell, Esq., on "An Analysis of
Provisions of the Postal Accountability and Enhancement Act Relating to
the Regulation of Postal Rates and Services."
The
Postal Regulatory
Commission the Commission has received an appeal of the closing of
the Ecorse Classified Finance Station, Ecorse, MI.
Deutsche Welle has reported that "At the end of this year, the
remains of Germany's postal monopoly are slated to be fully dismantled.
But Deutsche Post says it faces a less-than-level playing field and
unfair competition on the open market."
According to the Lexington Institute's
Dr. Charles Guy, "the Postal Service would apparently prefer to cave
in to union demands rather than confront the long-term challenges of its
burgeoning labor costs. USPS also capitulated earlier this year in its
negotiations with the American Postal Workers Union, its largest union."
Reuters has reported that "Postal workers have called off a series
of 24-hour strikes due to start at 7 p.m. on Thursday after last-minute
talks with employers at the Royal Mail. In a joint statement the
Communication Workers Union (CWU) and the Royal Mail said "detailed
discussions" would now take place at the Trades Union Congress. Both
sides were committed to reaching an agreement by September 4, the
statement added."
Newsdesk has reported that "DHL Express
has reached an agreement to sell its Dutch subsidiary Dedicated
Distribution Services (DDS) and its Belgian subsidiary Van Osselaer
Pieters Colli Service (VOP) to Österreichische Post AG (ÖPAG), the
Austrian postal service. The transaction is a further step in DHL’s
strategy to optimize the strategic synergies within the express
organization and thus to maximize shareholder value. The transaction
will not have any effect on the services provided to existing
customers."
From
the
Federal Register: The Postal Regulatory Commission has opened
"a formal docket to consider changing the status of Premium Forwarding
Service (PFS) from experimental to permanent. It describes the Postal
Service's proposal and makes several preliminary administrative
decisions. Issuance of this document meets legal publication
requirements and informs interested persons about key details, including
opportunities for public participation and the decisionmaking timetable.
August 21, 2007: Deadline for intervention. August 28, 2007: Prehearing
conference (10 a.m.)."
According to
Pensions & Investments, "United Parcel Service of America Inc.,
Atlanta, and Teamsters Central States, Southeast & Southwest Areas
Pension Fund, Rosemont, Ill., reached an agreement on the company’s
potential withdrawal from the $20.7 billion fund, according to a letter
the International Brotherhood of Teamsters sent to local union offices."
The
Indianapolis Business Journal has reported that "A federal judge in
South Bend this month will weigh whether lawsuits filed by independent
contractors against FedEx Corp. in two dozen states should be combined.
About 150 independent contract drivers, designated by FedEx as part-time
employees, seek to be classified as full-time workers, according to
Bloomberg. That would entitle them to benefits and paid time off. FedEx
also could be forced to buy up to 15,000 trucks used by the drivers, at
$45,000 apiece. According to some estimates, a favorable ruling for
contract drivers could cost the Memphis-based company $630 million."
From
PR Web:
"StampsByMail.us is officially open for business.
StampsByMail.us will allow people
or businesses to order Stamps by phone or online and have them delivered
right to their door. In addition, people can enroll in a Stamp
Subscription Program, and automatically receive Stamps Monthly or
Bi-Weekly."
The
Chicago Tribune has reported that "The Chicago District of the U.S.
Postal Service announced Wednesday that it had improved its delivery
rate through reforms a few months after the U.S. postmaster slammed the
city for having the worst mail delivery in the nation." See also the
Chicago Sun-Times.
Check out the
PostInsight web site for the latest paper on 'Future of Mail' Paper:
"Bills, Statements and Payments – Paper a
nd
Electronpic Delivery" by