Postal News from February 2008:

February 29, 2008

In a piece developed for OutputLinks, postal commentator Gene Del Polito noted that the intelligent mail barcode (IMB) "is probably the most important Postal Service undertaking since the development and implementation of the delivery point barcode. Getting this right is extremely important, particularly since in today's rapidly changing marketplace the USPS' margin for error is razor-thin."

As Multichannel Merchant has noted, "Given the challenges in catalog marketing today—namely higher postal and paper costs—and the slowdown in general retail, there aren’t too many success stories so far this year. But AeroGrow International is one of them: The kitchen gardening systems marketer’s catalog--launched about nine months ago--has pushed the company’s sales to record heights." [EdNote: Once again this confirms what PostCom has long said: "Advertising mail. It's the medium that delivers."]

Royal Mail has published its latest report on the quality of its mail service. Royal Mail confirmed that "industrial action during the second quarter of 2007-08 damaged services for postal customers. 78.4% of First Class letters reached their destination the working day after posting, compared with an on-target performance of 93% in the first quarter of the year. Royal Mail Marketing Director Alex Batchelor said, "We are very aware that our customers simply didn’t receive the service they deserve as a result of this year’s strike action by the Communication Workers Union - and we’re very sorry that they were let down." See also Hellmail's comments on the report.

According to the Federal Times, "A year after Congress passed a sweeping postal reform bill, lawmakers are seeing signs that their efforts are paying off. The reforms have led to a smoother process for changing postal rates, more transparency and discipline in the U.S. Postal Service’s finances, and more freedom in how USPS competes with commercial rivals."

The following is a letter from Postmaster General John E. Potter to postal customers:

"Thank you for your feedback on January’s Advance Notice of Proposed Rulemaking in the Federal Register concerning the implementation of the Intelligent Mail Barcode (IMB).

"Your comments were thoughtful and thorough. I am encouraged by the number of responses received and the support of the IMB vision of true transparency, visibility, and real-time data. It is all about increasing the value of the mail.

"You also raised a number of implementation concerns that we need to address. Implementation of the IMB is so important to our future that I am taking the unusual step of giving you advance notice of some of the changes you can expect in the Proposed Rulemaking we plan to publish in the Federal Register next month.

"Here is a preview:

• Many of you told us that January 2009 was too soon.

• We will propose a May 2009 implementation, concurrent with our next annual price change.

• We understand from you that many factors will drive the choice between the basic and full-service options.

• The May 2009 implementation will include separate prices for the full-service and basic option.

• The Postnet Barcode will remain eligible for an automation price until May 2010.

• Those prices will be announced with the May 2009 change. The proposal will include new options for mail owner identification.

• We are removing the requirement for green color bars on the container label.

"Again, thanks for your responses. I encourage you to continue your implementation efforts and to comment on our next notice. Let’s work together to make the IMB vision a reality."

APWU President William Burrus has asked USPS Inspector General David Williams to conduct an audit of the postal practice of permitting subcontractors to park trucks and store equipment on USPS property free-of-charge."

From the Federal Register: "The Department of State gives notice of the inaugural meeting of the Advisory Committee on International Postal and Delivery Services. This Committee has been formed in fulfillment of the provisions of the 2006 Postal Accountability and Enhancement Act (Pub. L. 109-435) and in accordance with the Federal Advisory Committee Act. Date: March 25, 2008 from 2 p.m. to about 5 p.m. (open to the public). Location: Room 1482, George C. Marshall Conference Center, Department of State, 2201 C Street, NW., Washington, DC 20520."

As the Associated Press has noted, "Neither snow, nor rain, nor heat, nor gloom of night might keep letter carriers here from doing their jobs. Gunfire and aggressive dogs are something else again. The U.S. Postal Service has temporarily suspended mail deliveries in some neighborhoods where letter carriers have faced real or implied violence."

The Ridgefield Press wants to know "Why does the Ridgefield Post Office look like a pig sty? "

Hemscott has reported that "TNT NV has confirmed a statement from trade union Abvakabo FNV that it has suspended talks with Dutch trade unions over a new collective labour agreement (CAO)."

The Philippine Information Agency has reported that "To make the young people aware the important role that postal service plays in our societies, to foster affection for writing letters even though other modern means of communication exists, the Philippine Postal Corporation (PhilPost) and the Universal Postal Union (UPU) have launched the 37th International Writing Competition for young people to promote better understanding around the world through the post office."

In response to an article in Hernando Today that painted a somber picture of the USPS' financial state, Postal Service vice president for public affairs and communications Joanne B. Giordano wrote: "In a recent commentary in Hernando Today, John Nash offered up his impressions of the financial health of the U.S. Postal Service....Mr. Nash opines that if the Democrats take control of the White House next year, they may increase the income tax to subsidize the Postal Service. That has not been an option for the past three decades. The Postal Service funds its operations exclusively on the sale of products and services, not tax dollars."

Press Release: "BCC Software, a BÖWE BELL + HOWELL company and a leading developer of highperformance solutions for professional mailers, has set a release date of March 3 for Track N Trace™, its newest offering. This service option will provide users with comprehensive information and unprecedented specificity regarding the delivery progress of their mailing jobs. Track N Trace uses the new USPS ® Intelligent Mail ® barcode to supply BCC customers with maildelivery monitoring information as part of the USPS OneCode Confirm ™ program."

The Camden New Journal has noted that "THE Royal Mail were negotiating with a small family-run newsagents to open a branch in Belsize Park just three days before announcing a massive programme of cuts that hails the end of four post offices in Camden. Royal Mail announced last week that the offices in England’s Lane, Highgate High Street, Crowndale Road and South End Road are all due to shut as the company battles to cut costs. Demonstrations by angry customers have taken place outside the branches: on Saturday, BBC newsreader Fiona Bruce lent her support to the campaign, asking shoppers in England’s Lane to sign a petition against the closure."

The Economic Times has reported that "India Post is all set to enter into a series of global partnerships to compete with international money services companies such as Western Union and global courier companies like FedEx. The postal department is in talks with its counterparts in the US, Switzerland, France, and Oman, among others, as it plans to tap the expertise of these countries in specialised financial services and replicate such offerings in India."

February 28, 2008

A summary of key points made at today's House postal oversight hearing has been posted on this site.

• Statement of Chairman Danny K. Davis (93 KB)

• Testimony of Dr. Frank Wolak (30 KB)

•  Testimony of Ms. Katherine Siggerud (401 KB)

• Testimony of Postmaster General John Potter (1,005 KB)

• Testimony of Mr. James Bilbray (234 KB)

• Testimony of Dan Blair (595 KB)

Forbes has reported that "Italy's antitrust authority said it has decided to accept commitments made by Poste Italiane SpA to settle an investigation into the post office's market position in liberalised services."

According to the Daily Mail, "Air freshener is good at getting rid of unpleasant smells but a postmistress managed to clear the room of gun-wielding robbers when she grabbed a can of Oust and sprayed the raiders in the face. Postal worker Margaret Taylor fought off two men who burst into her post office waving a gun and a knife. The 42-year-old picked up a bottle of Oust - which claims to do "more than just eliminate odours" - and sprayed the raiders in the face."

From Canada NewsWire: "The Canadian Union of Postal Workers (CUPW) wants Canada Post to stop taking away rural roadside delivery until the corporation has thoroughly consulted and explored all available delivery options with rural residents and local union officials. The union also wants Canada Post to go back to locations that have lost roadside mailbox service after improper consultation."

Call 12 for Action has reported that "If you send someone a card for a special occasion, and you mail it through the U.S. Postal Service, watch out what you include inside that card. The U.S. Postal Service confirms: Often times during processing on the sorting belt, gift cards will be forced out of occasion cards, through the envelope, and onto the Post Office floor. The problem is not necessarily with the thickness of the envelope, but with where the gift card happens to be laying inside!"

According to The Consumerist, "When you get a new or replacement credit card in the mail, you have to call the number on the back to activate it, or else you can't use it, right? Wrong. Despite the sticker on the back that says, "For security purposes, this card is not active," credit card companies are mailing out cards that can be used without phone activation. This is a problem if the letter containing your credit card is intercepted by an identity thief, like what happened to reader PC Guy. The kicker? He didn't even request the card, it was a forcible reissue when his store-branded card switched from Visa to Mastercard."

According to The Telegraph, "Prime Minister Gordon Brown has defended Cabinet ministers over leading protests against the planned closure of Post Offices in their own constituencies. Ministers have been accused of "rank hypocrisy" after it emerged a third of Gordon Brown's Cabinet are campaigning against Government plans to axe post offices in their own constituencies. "

PostCom Members!! In mid-2007, PostCom formed a "slim jim" subgroup to work with the USPS on testing slim jim style pieces mailed as automation letters, as well as booklet style and folded self-mailers, tabbed pieces etc. PostCom is currently working with the USPS on testing and is expecting the USPS to issue an Advance Notice of Proposed Rulemaking in the near future with some initial proposals on changes to mailing standards for these pieces. Stay tuned.

Arutz Sheva has reported that "Artifacts from City of David excavations in Jerusalem reveal an interesting tidbit of information about the ancient postal system in Israel."

The Philippine Information Service has noted that the "Philippine Postal Corporation, Region VII thru PhilPost 7 Circular No. 2007-11 dated December 12, 2007 is implementing new guidelines in the issuance of Postal Identification Cards (PID). This is in order to improve the quality, security, credibility and to protect the users of the Postal ID. All Postal Officials and employees are duty-bound to safeguard the authenticity of each PID – from application to final releasing and that it must be issued without erasures or alterations which can cast doubt as to the integrity of the ID."

Reuters has reported that "The Teamsters union has reached a tentative labor agreement with DHL Express, a unit of Deutsche Post."

The Telegraph has reported that "Ministers have been accused of "rank hypocrisy" after it emerged that a third of Gordon Brown's Cabinet are campaigning against Government plans to axe post offices in their own constituencies." [EdNote: You wanna see 'rank hypocrisy?' Come visit the U.S. and see the baloney done in Congress with the U.S. Postal Service. You know...'run like a business'...no, don't run like a business....Run like a business...no..... Get the picture?]

From Canada NewsWire: "UPS Canada today announced it will be rolling out 139 additional cleaner-burning, propane delivery trucks. The majority of these vehicles will be deployed in Quebec, Ontario and Alberta and the rest distributed between British Columbia, Saskatchewan and Manitoba. The propane vehicles are joining roughly 600 propane trucks already operating in Canada. The addition of these vehicles means more than a third of UPS Canada's 2,000 package delivery vehicles will run on low-carbon fuel."

AllAfrica.com has reported that "Postal services provider, Zimpost has introduced motorised letter delivery service as part of efforts to improve efficiency and ensure timely delivery. The company has bemoaned a decline in mail business which is facing stiff challenge from the introduction of new technologies and other communication tools such as the electronic mail which have reduced the need for writing letters physically. Withdrawal of international airlines from the country had also affected its ability to timely move mail from and into the country, Zimbango said. Air Zimbabwe, South Africa and Kenyan Airways are the only airlines that Zimpost is using to send international mail, which they then forward to other airlines to reach the intended destination."

February 27, 2008
 

PostCom welcomes its newest member: The Arvonio Group, LLC P.O. Box 151152 Alexandria, VA 22315-1152 represented by Richard H. Arvonio, President.

The "Directive 2008/6/EC Of The European Parliament and of the Council of 20 February 2008 amending Directive 97/67/EC with regard to the full accomplishment of the internal market of Community Postal Services" is available on the European Commission web site.

United States Postal Service Board Of Governors will meet in closed session at 11 a.m. on Tuesday, March 4, 2008 at U.S. Postal Service Headquarters, 475 L'Enfant Plaza, SW, Washington, DC. Among the items to be considered:  1. Strategic Issues. 2. Product Pricing. 3. Financial Update. 4. Personnel Matters and Compensation Issues.

CNNMoney has reported that "Standard & Poor's Ratings Services said the opening of the EU's 90 bln eur mail markets to full competition from 2011 will raise the competitive pressure on the four large European postal companies. S&P said the slow pace of liberalisation over a 15-year period has also offered a strong competitive advantage to these incumbent national mail services. This has given the companies the chance to reposition themselves in more lucrative segments of the mail market and expand into non-mail activities like international express and logistics and financial services."

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

The French La Poste is currently looking into various takeover options for the insolvent Pin Group. Currently, the preferred option seems to be an acquisition undertaken by the post in conjunction with a finance investor. However, the reciprocity clause contained in the new EU directive would preclude a takeover. As long as the French postal market remains unopened, it is questionable whether La Poste would be allowed to operate in Germany.
Adrexo, the first license holder in the French postal market (CEP News 25/06), is partly pulling out of the market again. Last week, the company announced the closure of its addressed mail distribution. Philippe Leonie, CEO of Adrexo’s parent company Spir Communication, said losses, a difficult market environment in combination with the deferment of postal market liberalisation to 2011 had made the decision inevitable.
A newspaper boy delivering advertising mail - hardly an item worth reporting, if it wasn’t for the fact that the contractor in question is Deutsche Post. German news magazine »Der Spiegel« reported on Monday that the post had decided to hire Westdeutsche Allgemeine Zeitungsgruppe ("WAZ") delivery staff to carry out deliveries of unaddressed advertising mail from 1 March.
Belgium’s La Poste has acquired all shares in the joint venture Certipost (2006 turnover: 8.1m euros, 4m euros deficit). Specialising in electronic communication and data exchange, Certipost was set up in 2002 in conjunction with telecommunications group Belgacom.
Russian Post ended the financial year 2007 with a deficit of approx. 160m euros. In a statement released mid-February, new CEO Andrei Kazmin said that despite considerable volume growth, the post had not been able to get out of the red. Mail volumes went up by 14%, while parcel volumes increased by 25%. First Class mail saw volumes double, and EMS consignments increased 1.5 times. Mr Kazmin said flaws in legislation, significantly higher wages and numerous lossmaking service offers had caused the deficit.
Germany’s Minister of Economics Michael Glos appears to be seeking an alternative solution as part of the ongoing debate surrounding Deutsche Post AG’s exemption from VAT.
Norwegian Edda Media AS has sold its direct marketing operations in Norway and Sweden.
Norway’s Posten AS has announced the rebranding of its foreign operations. Last week, the post stated that green would be its main colour of appearance in Scandinavia, while activities in Norway would remain red. The corporate identity including a new logo is due to be presented later this year.
Belgian daily »De Morgen« (25.2) reports a sharp increase in the number of light-fingered postmen.

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.)

Portfolio.hu has reported that the Hungarian postal service, Magyar Posta, will be among the government enterprises that will be subject to a "new ownership program."
 

WANTED!....NEW POSTAL PRODUCTS AND SERVICES Take a good look at the way your company uses mail in its business. Get the best minds in your enterprise to help come up with a list of ideas that could help stimulate the creation of new, more value-driven postal services. Then, send your ideas to PostCom (info@postcom.org) to help us compile a comprehensive list. So...don't just sit there....Get thinking!!

Transport Intelligence has reported that "DHL Express has decided to build a completely new terminal at the Rosersberg industrial park in Stockholm, Sweden, as part of a "strategic offensive" to develop new facilities all over that country."

The Guardian has reported that "The Netherlands should open its postal market to full competition only when all workers in the sector get minimum wages and have labour contracts, a senior official at Dutch union FNV Bondgenoten said."

The Western Star has reported that "Letter carriers in the heart of the Alberta oilsands continued their strike in protest of forced overtime Monday, prompting Canada Post to file for a court order mandating its employees back to work."

Caterer Search has reported that "Contract caterer Quadrant, a joint venture between Compass Group and Royal Mail, has renewed its contract to feed postal staff in a deal worth £65m in annual turnover. Under the five-year extension, Quadrant will continue to feed 185,000 Royal Mail employees at 1,150 sites across the UK. A 1,800 strong Quadrant team will run 325 restaurants and look after 4,300 vending machines as part of the deal."

February 26, 2008

From the White House: "The President intends to nominate Nanci E. Langley, of Virginia, to be Commissioner of the Postal Regulatory Commission for the remainder of a six-year term expiring 11/22/12. Ms. Langley currently serves as Director of the Office of Public Affairs & Government Relations at the Postal Regulatory Commission. Prior to this, she served as Deputy Staff Director of the Subcommittee on Oversight of Government Management, the Federal Workforce, and the District of Columbia on the Senate Committee on Homeland Security and Governmental Affairs. Earlier in her career, she served as Senior Legislative Assistant in the Office of Senator Daniel Akaka. Ms. Langley received her bachelor's degree from the University of Southern California."

U.S. Postal Service Press Release: "An international leader recognized for enabling business transformation through innovative IT solutions has been named executive vice president and chief information officer of the U. S. Postal Service (USPS). Ross Philo, who comes to the Postal Service after a long career in energy-related information services, will support the development of growth, service and administrative initiatives by ensuring that planning and development are linked with appropriate technology strategies. Before joining the Postal Service, Philo was director of global energy solutions at Cisco Systems. Prior to that he was CEO at Visean, Inc., a provider of data transfer services to oil and gas companies. He served as senior vice president and chief information officer at Halliburton Energy Services, held a series of IT leadership roles at Schlumberger Limited, and has extensive international business experience. He holds an engineering degree from the Imperial College of Science and Technology in London."

From Marketwire: "In response to its business customers' demand for opportunities to differentiate their LettermailTM from their competitors, Canada Post has launched Customized Postal Indicia. The innovative service allows businesses to design a 'stamp-like' postage indicia, with an image of their choice, printed onto envelopes."

From PR Newswire: "Verizon Business has completed the design and implementation of a new fully managed Internet protocol-based network for the United States Postal Service, consolidating three previously distinct networks to control costs and consolidate bandwidth while bringing the benefits of advanced IP services."

Union Network International has reported that "Ten thousand postal workers from the Postal Service throughout Spain demonstrated in the centre of Madrid in favour of improvement in their pay and greater job security for the 64,000 postal employees; they marched behind a huge banner that said: For fair pay, For workplace democracy, For the recognition of labour rights and For job security, For the future of the postal service and its workers".

Transport Intelligence has reported that "Gati Limited, a leading Indian express distribution and supply chain management company, has entered into a strategic alliance with Netherlands-based based General Logistics Systems (GLS), described as one of the three largest parcel service providers in Europe."

Postmaster General Jack Potter has announced two new officer selections. Ross Philo was named Executive Vice President and Chief Information Officer (CIO) and George Wright was named Vice President, Information Technology Operations.

According to Hellmail, "DX Mail services has reminded Postcomm that the present VAT exemption enjoyed by Royal Mail makes the mail market in the UK somewhat unbalanced and since Postcomm has no powers to change this directly, it should consider 'levelling the playing field upwards through the adoption of measures that positively discriminate in favour of new entrants.'"

Gulf News has reported that "A high-level delegation from China Post Group, led by Zhang Yafei, President of the Group, explored the potential for stronger business ties with Emirates Post, at the end of an official visit. The Chinese officials held talks with Ebrahim Karam, CEO of Emirates Post, Salem Al Shaye'e, Assistant Director General, Operations, Emirates Post and Saif Ali Al Shehhi, Director of Operations, Emirates Post."

February 25, 2008

Bloomberg has reported that "The U.S. Postal Service undercharged countries including China, India and Canada by millions of dollars because of errors in processing mail at John F. Kennedy International Airport in New York, auditors said. The Postal Service may recover $2.2 million of the $3.4 million that it said it is owed by the postal agencies of the other countries, a report by the service's inspector general said. The remainder stemmed from computer, billing and employee errors made in 2006, too long ago to be recovered under law."

As Traffic World has noted, "With a new hand at the helm of Deutsche Post World Net, the question for shippers now is what direction the world's largest logistics and cargo transport company will take. Frank Appel took the reins last week of the sprawling empire under Deutsche Post World Net after the resignation of Klaus Zumwinkel, who built the state postal authority into the world's largest transportation operator.S"

From PR Newswire: "AddressVision Inc. (AVI), a Bull Group subsidiary and a leading provider of postal automation solutions, today announced that Australia Post has chosen AVI to upgrade its address recognition and mail automation capabilities for processing the country's letter mail."

Precision Marketing has noted that British postal regulator "Postcomm found 21 per cent of medium-sized businesses were taking advantage of multiple mail providers, while only 17 per cent of small businesses were doing so."

Marketing Daily has reported that "newspaper inserts and circulars are more attention-grabbing than TV advertising, according to the latest Customer Focus survey from Vertis Communications."

February 24, 2008

Union Network International has reported that "PIN Group, the German mail delivery company is to pay the statutory postal minimum wage to its workers. The decision was made by the company's new management led by Horst Piepenburg and will who said it will be announced within the next few days."

February 23, 2008
 

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

• The Association for Postal Commerce, joined by the Direct Marketing Association and Printing Industries of America, this week submitted comments in response to the Postal Service’s proposed implementation of Intelligent Mail Barcodes. While PostCom supported the concept underlying the IMB in principle, it stressed the new technology must be deployed in a manner that is cost effective for both the USPS and mailers, using well thought-out policies and processes that recognize the statutory goal of lowest combined cost.

• The Postal Regulatory Commission will begin soliciting comments for a study of Universal Service and the Monopoly within the next few weeks. The study, which will look at a number of critical issues for business mailers that have never been examined in any previous economic or policy work, is critical for the mailing community as it will provide the framework for the next round of postal reform likely to begin next year.

• American Postal Workers Union President William Burrus took aim at the Mailing and Fulfillment Service Association in this “Burrus Update” for members.

• In this commentary, USPS executive George Wright explains the unique challenges and opportunities facing the Postal Service as the first federal agency mandated to comply with the Sarbanes-Oxley Act, which requires corporations to report on the effectiveness of their internal controls, with the goal being to ensure the accuracy of financial reporting.

• All companies know the importance of customer service or at least pay lip service to it. PostCom VP Kate Muth explains the importance of measuring the USPS’ performance results in this postal perspective. She says industry understands the USPS’ customer service standards must be realistic, and its measurement systems credible.

• Federal Register announcements. New Postal Service IG reports available online. BRM rate chart revision.Appel succeeds Zumwinkel as Deutsche Post chairman. TNT might punt German operation over wages, VAT issue.

• Epostmarks joins PostCom. Mailcom 2008 early-bird registration deadline looms.

• A list of upcoming postal-related events.

The PostCom Bulletin is distributed via NetGram

The Messenger has noted that "First-class U.S. Postal Service stamps will increase in price on May 12, going up to 42 cents, it was announced last week. Postal Service officials are able to impose price increases more regularly, and with less oversight, because of a change in the law during 2006. It may be time for Congress to revisit the issue, asking whether it has been made too easy for the Postal Service to put its stamp of approval on rate increases." See also the Providence Journal.

The Associated Press has reported that "U.K. army experts dismantled a parcel bomb Wednesday in Northern Ireland's major mail-sorting center, which had to be evacuated for six hours."

Research-Live.com has reported that "Royal Mail has appointed 32 firms to its four-year insight and analysis roster."

La Jornada has reported that "the Attorney General informed the agent of the Federal Prosecutor assigned to the Deputy Attorney Specialized Investigation of Federal Crimes that over 115 thousand items of contraband were seized  during an operation conducted at the offices of the National Coordination of Operation Mexican Postal Service."

Union Network International has told its members that "Two of UNI's Portuguese affiliates, SNTCT and SINDETELCO, are taking strike action Monday 25 February to protest against work deregulation and to demand the renegotiation of a decent collective agreement. The unions action is taken to try and stop CTT – Correios de Portugal, S.A (the Portuguese Postal Service) from destroying the benefits of the workers that have been gained in the past through negotiations."

February 22, 2008

Fort McMurray Today has reported that "Letter carriers with Canada Post’s Fort McMurray station walked off the job this morning, saying the federal post service is forcing them to work overtime to deal with backlogs caused by a shortage of local mail workers. The walkout, which was unplanned, leaves the city without mail service, and one union official said they don’t know how long the strike action will last. Mail workers say this morning’s walkout was triggered by a letter issued by management, saying that Canada Post will continue to discipline employees who refuse forced overtime with suspensions or possible dismissal."

The Orlando Sentinel has reported that "With the special election just days away, Florida Democrats suddenly came out swinging in the fight for Florida House District 32. In a news release Thursday, party officials accused Republican candidate Sean Campbell of violating a state election law by mailing stamps to voters, urging them to use the free postage to mail in their absentee ballots for Tuesday's election."

Postmaster General Jack Potter announced the appointment of three vice presidents and an acting vice president (Kathy Ainsworth, Vice President, Retail Operations; Jordan Small, Vice President, Delivery; Gary Reblin, Vice President of Expedited Mail; and Jim Cochrane, Acting Vice President, Ground Packages) at a recent leadership conference in Washington, DC.

The National Post has reported that "The Federal Court of Canada has added a new chapter to an epic, 25-year human rights case, overturning a $150-million pay equity award granted three years ago to thousands of Canada Post employees across the country."

The New York Times has reported that "Variety, Publishers Weekly and dozens of other trade publications are going up for sale as the publishing company Reed Elsevier looks to get out of the uncertain advertising market."

Aviation.ca has reported that "Canada Post made a special delivery to Winnipeg today when it announced its new state-of-the-art mail processing plant will be built on a 27-acre parcel of land located at the Winnipeg James Armstrong Richardson International Airport located within the St. James Industrial Area. The plant represents a $50 million investment in Winnipeg."

The Chronicle Herald has reported that "Canada Post is denying allegations by a labour leader that mail is sometimes going undelivered in Cape Breton because of job cutbacks." See also the Cape Breton Post.

February 21, 2008

As the Jewish Exponent noted, "Wynnewood resident Alan C. Kessler has received a stamp of approval from the U.S. Postal Service Board of Governors, having recently been elected its chair for the next year by his peers. Kessler, 57, wears many hats in addition to this new position. He also serves as co-finance chairman for the presidential campaign of Sen. Hillary Clinton (D-N.Y.), and is a partner in the law firm of Wolf Block in the litigation group. The walls and desk of his Center City office are covered with dozens of photographs and autographs from Democratic Party superstars like Bill and Hillary Clinton, former Vice President Al Gore, Delaware Sen. Tom Carper and Pennsylvania Gov. Ed Rendell. "You do enough of this, and there's a picture at every turn," remarked Kessler."

UK Trade & Investment Today has reported that "France-based organisation La Poste is re-branding its UK arm following construction of a UK postal “superhub”. Parceline will be re-branded as Dynamic Parcel Distribution (DPD) following an investment from parent firm La Poste. The international organisation hopes to bring the Peterborough-based parcel carrier in line with its other European brands, which currently operate in 38 different countries."

The U.S. Postal Service has announced that it now offers a new larger box with one flat price for shipping.

Press release: "MAILCOM 2008 will be held April 29-May 2 at the Atlantic City Convention Center. Critical issues like Intelligent Mail Barcode compliance, new postage rates, shape-based mail, eco-wise management, and much more will be presented in 145 comprehensive seminars. Plus over 300 booths of the latest technology will be on display at The Big Show exhibition. You can register at www.mailcom.org.

Forbes has reported that "Telecoms group Belgacom SA said it is to sell its 50 pct stake in Certipost to De Post-La Poste, giving the Belgian postal company full ownership of the electronic communications joint venture. Certipost was set up by De Post-La Poste and Belgacom in 2002, and provides certified electronic communication for electronic documents such as invoices, as well as supplying the digital certificates for the electronic ID card in Belgium. No financial details were disclosed."

The Postal Service and Postal Customer Councils (PCCs) are sponsoring symposiums next month to help mailers get ready for new Intelligent Mail barcode requirements coming next year. USPS has proposed that beginning January 2009 mailers will be required to use Intelligent Mail barcodes to take advantage of automation prices for letters and flats. The four sessions, featuring USPS officials and industry representatives, will provide information on the new requirements and what businesses need to do to get ready. Customers can learn how Intelligent Mail drives improvements in service and efficiency and adds more value to their mail. The symposiums are March 6 in Las Vegas, March 7 in Chicago, March 12 in New York City and March 13 in Atlanta. PCCs bring business customers and postal officials together at the local level to discuss ways mail can help businesses grow. Customers interested in attending one of these symposiums should go to the National PCC website at usps.com/nationalpcc for registration information.

U.S. Postal Service Post Office Boxes now can be found online at http://usps.com/poboxes. The new, online locator feature allows customers to find box availability, sizes and fees, as well as addresses, phone and fax numbers for each Post Office listed with available PO Boxes. PO Boxes are as secure as mailboxes but provide more flexibility for mail pickup. The convenience of earlier mail delivery is helpful to small business owners. Boxes provide home-based businesses with the ability to separate business and personal mail.

No room for mail in the movie biz? Think again. As the New York Times has noted, "the Internet movie download era is more distant than pundits think, for four colossal reasons. First, downloadable movies require high-speed Internet connections — and only about half of American households have them. That number won’t change much for years. Second, downloaded movies don’t include the director’s commentaries, deleted scenes, alternate endings, alternate language soundtracks or other DVD goodies. It’s just not as rich an experience. Third, movie downloads don’t deliver the audio and video quality of DVD discs — even standard-def ones. Internet movies are compressed to download faster, which affects picture quality, and offer older, more compressed audio soundtracks than modern DVDs." [EdNote: And mail doesn't care about the bandwidth the digital distribution of a high definition movie might require.]

Reuters has noted that "Web search leader Google Inc. plans to start selling ads to appear in Web videos after it agreed a partnership with YuMe, an online video advertising network." [EdNote: Ooooohhh, I get it. Web ads to provide free web content. Just like mailed ads to provide free universal, mail delivery service....Gee...does Catalog Choice, or Junk Busters, or Green Dimes, or any other anti-capitalist, anti-mail organization du joir know about this?]

The Baltic Times has reported that "Latvia’s Transport Ministry announced that a French consultancy and a local business conglomerate have been picked to create the country’s postal bank, a project that will aim to rescue the Baltic state’s moribund postal company."

The Truro Daily News has reported that "Beginning this spring, every rural mailbox in Colchester County is to be included in a safety review being undertaken by Canada Post. The review, involving approximately 3,800 mailboxes serviced by the Truro post office, is part of a nationwide effort that will see some 843,000 rural sites checked for health and safety concerns over the next three years. “It’s part of a larger program, a national program,” Canada Post spokeswoman Tinna Bonner said, of the local review that will see “every single mailbox” assessed for any potential risk to mail carriers."

As The Examiner has noted, "legal ads must now run in paid-circulation papers that have periodical mailing permits from the U.S. Postal Service, which determines the minimum editorial content in these publications. Maryland law requires governments to publish notice of meetings, tax sales, highway plans and other matters. Private citizens, auctioneers and businesses are required by law to publish advertisements about estate sales, foreclosures, renunciation of debts of a divorced spouse and other items involving the courts. Free-distribution newspapers would be allowed to compete for legal advertisements in Maryland through a bill proposed by Del. Sandy Rosenberg, a Baltimore City Democrat. “Free-market competition would result in lower costs for legal notification advertisements,” Rosenberg told his colleagues on the House Judiciary Committee, of which he is vice chairman. “Maryland citizens as well as state and local governments would benefit,” by reducing advertising rates.

VietNamNet has reported that "The Vietnam Post Corporation (VNPost) and the La Poste Group of France will jointly launch cost-effective Direct Mail service in Vietnam in April."

MediaPost has reported that "marketers believe the effectiveness of television advertising has declined over the past two years. The good news? They're more interested in trying new formats and other forms of video commercials. Most marketers believe they're ready for the changes. According to the ANA survey, more than half of them said that when DVR penetration reaches 50% of all TV households they plan to cut advertising by 12%. In a related measure, 87% of respondents said they will increase their Web advertising spending."

According to American Postal Workers Union (APWU) president William Burrus, "There are some troubling aspects of the most recent rate case. Although “postal reform” and passage of the PAEA was promoted as the savior of the Postal Service, the trend of converting the USPS from a public institution that serves all the people to one that primarily serves the interests of commercial mailers continues unabated."

Transport Intelligence has noted that "'Green logistics' is now much more than marketing hype – it has become an essential part of the tendering process for outsourced logistics."

February 20, 2008
 

PostCom welcomes its newest member: Epostmarks, Inc. 45 Euclid Street Rochester, NY 14604-2217 represented by Jason Curtis, President

According to one writer for the Tampa Tribune, "When a business is showing decreased gross income and/or net profit, simply raising the price of its product or services will usually exacerbate the problem. The proper course of action is to reduce costs, and/or improve the product or services without raising prices. Our endangered U.S. Postal Service seems to have been unable to understand that basic concept."

The Centre Daily Times has noted that "ecoEnvelopes (www.ecoEnvelopes.com), the developers of innovative reusable envelopes designed to conserve natural resources and reduce costs, have received a key National Customer Ruling from the US Postal Service (USPS). It is the first time USPS has issued such a certification for a line of reusable envelopes and solidifies ecoEnvelopes' position as a leader in a bold new effort to green the US mail. "

From the French postal regulator ARCEP: French legislators included in their postal regulation law of 2005 the principle of equal access to mailboxes between authorised postal operators and the universal service provider, La Poste. Like other service providers, authorised postal operators and press delivery services face increasing difficulties in gaining access to mailboxes in apartment buildings. La Poste has developed the so-called "Vigik" system which provides a technical response to the needs of residents and operators but whose use, on a mail distribution market open to competition, raises the question of access to many service providers and creates a situation which protects long-time and well-known providers (such as La Poste, EDF, France Telecom, etc.). Furthermore, other controlled access systems have also been installed. ARCEP is pleased to report that a short-term solution allowing immediate access for authorised postal operators has finally been found. This solution allows them, using equal methods (that is, by sharing the same identification code in the Vigik system), to gain access to mailboxes installed in apartment buildings equipped with this system. A press release, the summary of the consultation (pdf) and public contributions (Adrexo, la Poste) are available on line on the home page : http://www.arcep.fr/eng

The Associated Press has reported that "Canadian doughnut-and-coffee chain Tim Hortons Inc. on Wednesday named Moya Greene as a board member. Green is currently president and chief executive of Canadian postal authority Canada Post Corp., where she is also a board member."

Transport News Network has reported that "Logistics companies are set to have a difficult 2008 according to a new report by independent market analyst, Datamonitor. The report ‘State of the Industry - Logistics’ predicts that as the fallout from the global credit crunch becomes clearer, margins in the logistics sector are set to come under further pressure. However, the report highlights several trends outside the macroeconomic environment that are set to have a large impact on the industry."

The BBC has reported that "Moving postal services to libraries and leisure centres could save one in five post offices in London from closing, a council has said."

As Politico has noted, "On this day in 1792, President George Washington signed legislation creating the U.S. Postal Service. Before the American Revolution, letters were exchanged mainly via private couriers or through the help of friendly travelers. Some colonies set up “post offices” in taverns and shops where carriages or riders could pick up and drop off mail. In 1707, the British government established the position of postmaster general, although mail still moved largely through the hands of private individuals. In 1737, Benjamin Franklin became postmaster general of the colonies for the Crown at age 31. He carried out his duties in England until he was fired as a subversive colonialist. Franklin then returned to America and created a rival postal system. The 1792 act reinforced the power of Congress to establish official mail routes. It specified that newspapers should be included in mail deliveries and made it illegal for postal officials to open mail."

From the Federal Register:

• The Postal Regulatory Commission is conducting a formal review of the Postal Service's planned rate adjustments for essentially all products in the market dominant category, which includes the First-Class stamp, and limited classification revisions. The adjustments are based on a statutory price cap. A public comment period extends through March 3, 2008. This will be followed by a Commission determination on the consistency of the adjustments with certain considerations. The new rates and the classification revisions are expected to take effect May 12, 2008. DATES: March 3, 2008: Deadline for public comments.

• This final rule revises the Mailing Standards of the United States Postal Service, Domestic Mail Manual (DMM[supreg]) to provide the eligibility standards for the Outside-County Limited Circulation rate that has been approved by the Governors of the United States Postal Service. Eligible issues of publications entitled to use this rate will receive a 5% discount on qualifying Outside-County copies. As set forth in the new standards, publications in each of the qualification categories may be eligible for the rate; issues of these publications will qualify if eligible copies are mailed at In-County rates and the total number of Outside-County copies mailed for that issue is less than 5,000. DATES: Effective Date: May 12, 2008. 

• This final rule revises Mailing Standards of the United States Postal Service, Domestic Mail Manual (DMM[supreg]) to make Premium Forwarding Service (PFS) a permanent mail classification. There are no major changes in the permanent PFS classification compared with the experimental service offering. DATES: Effective Date: March 2, 2008.

• The Postal Service will adopt new mailing standards and prices for First-Class Mail International service on May 12, 2008, which reflects current First-Class Mail domestic shape-based standards. Our revisions recognize that each mailpiece shape--letter, flat, and parcel--has substantially different processing costs that needs to be covered. Currently, the First-Class Mail International pricing structure does not have a distinction between letter-size, flat-size, and package (small packet) pricing. DATES: Effective Date: 12:01 a.m. on May 12, 2008. 

Press Release: "As a result of comprehensive research conducted with the UK's top 100 generators of mail, parcels, packets and pallets; two industry leading events, The Mail Show and The UK Express Delivery Conference are converging into one to create the ultimate industry event. The Mail & Express Delivery Show will take place this year at the Novotel London West on 1-2 July, uniting all sides of the mail, parcel and express delivery industries and specifically focusing on the customers/end users. As a result of industry development in areas such as e-commerce, B2C/C2C, transpromo mail, direct mail and environmental issues plus the convergence of the two industries through consolidation, the new event will deliver to customers what they really want, a two-day event that deals with matters common to both industries whilst also providing subject specific sessions for both mail and express users."

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

Deutsche Post intends to co-operate with FedEx in the loss-making DHL express business in the USA. According to the »Financial Times Deutschland« (19.02), the post’s new CEO Appel and CFO John Allan have reached an agreement on this plan of action.
Finland’s post Itella achieved a growth in both turnover and profit during the financial year 2007.
For Sweden’s Posten AB a strong growth in profit on an increasing turnover marked the financial year 2007.
Following a tradition from the last few years, Norway’s Posten AS chose to publish its 2007 annual results at roughly the same time as the post companies of Sweden and Finland.Despite a turnover increase of 15.7% to over 3.74bn euros, the operating result fell to 18% below that of 2006 (137m euros).
Dutch mail service operator Sandd (Sort and Deliver) enjoyed an 18% turnover growth to 80m euros last year. At the same time, the company increased its share of the liberalised postal market from 12 to 14%.
Japan Post Holdings Co. Ltd appears to be considering acquiring a stake in retail chain Lawson. Japan Post president Yoshifumi Nishikawa said last Tuesday that his company might buy shares in Japan’s third biggest retail chain.
Finland’s post Itella and Posten Norge in Norway have announced the founding of a new joint venture. Itella Information AS - of which the Finnish post holds 51%, while Posten Norge controls 49% - will be active in the field of information logistics.
Having battled with financial difficulties for several months, Latvijas Pasts has now lost its top management. The general director of Latvia’s national post Gints Skodovs handed in his resignation. Latvian media had recently reported that Latvijas Pasts’ deficit had more than doubled last year to 14.4m euros.
India’s leading CEP operator Blue Dart Express remains on an expansion course.
Denmark’s second biggest parcel service operator GLS has extended its production site in Kolding.
British parcel and express service provider Parceline will in future appear under the brand name DPD, according to a company announcement on Monday. Although Parceline has been a member of the GeoPost/DPD group since the mid-nineties, the company had continued to appear under its own name.
British parcel and express service provider Parceline will in future appear under the brand name DPD, according to a company announcement on Monday. Although Parceline has been a member of the GeoPost/DPD group since the mid-nineties, the company had continued to appear under its own name.
Despite growing signs of a recession, American logistics group Express-1 Expedited Solutions sees good opportunities for progress in the USA.
Schweizerische Post seems intent on taking over German mail operator Direktexpress.
The Brazilian post ECT ended the financial year 2007 with the best result in company history.
Last Saturday, employees of Spain’s Correos took to the streets of Madrid in a protest against the current freezing of salaries and for better pay. According to media reports, the average monthly income of a Correos employee is 900 euros.
According to press reports, Brazilian post Empresa de Correios e Telégrafos (ECT) is negotiating a purchase of or stake in airline VarigLog.
FedEx is planning to increase the number of its employees in France by 8%.
German Hermes Logistik Gruppe has installed an automatic handwriting recognition utility for parcel labels.
The price increase due to be introduced by the US post in May is not really a price increase after all, the U.S. postal Service argues. Apparently, the postage increase for domestic mail and mail to Canada remains below the inflation rate.
 

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 Financial Post has reported that "United Parcel Service Ltd. has received a costly lesson from one of the country's highest courts: good intentions and tax law don't mix. The world's biggest package delivery company may have been doing customers a good turn by paying upfront for the taxes and duties they owed on parcels shipped into this country from the United States. But the Federal Court of Appeal has sided with Canada's tax collector, ruling that UPS isn't entitled to a rebate for those payments -- leaving the company about $2.9-million out of pocket. The decision also means UPS could be on the hook for $1.1-million in penalties and interest."

The Federal Antimonopoly Service of Russia has initiated a case against the Federal State Unitary Enterprise Russian Post on grounds of violating Article 10 of the Federal Law “On protection of competition” (abuse of dominant position). Vostok Media reports, the case was initiated on the complaint of Janzen s.r.o., Czech postal operator. Violation of the antimonopoly law is seen in the actions of Russian Post aimed at limiting reception and processing of international post that led to impairment of interests of the foreign postal operators and citizens of the Russian Federation – post receivers – and may also lead to restraint of competition at the Russian market of mailing services.

The Pioneer Press has reported that "With negotiations bogging down over a street signal, plans to move the U.S. Postal Service's sorting center from the St. Paul riverfront — where it neighbors the Union Depot — to Eagan's Lexington Avenue have taken on overtones of "Who's on First?" The sorting center needs to be relocated to make room for the transit station, but Eagan, Dakota County and the Postal Service appear to be on three different pages with regard to how to configure streets and traffic signals in the new location."

As the Washington Post has noted:

• In its latest attempt to stem the decline in first-class mail, the U.S. Postal Service is collaborating with HBO to promote letter writing -- and a television miniseries about one of the most prolific letter writers in American history. Some experts question whether the arrangement makes financial sense for the Postal Service, which relies on revenue from operations rather than taxpayer funding. HBO, which is not paying the Postal Service a marketing fee, appears to be receiving valuable advertising through a public agency without offering much in return, they said.

• Congress decided more than 30 years ago to make it clear that the nation's age discrimination law protects federal employees. So does it make sense that Congress at the same time chose not to shield workers from retaliation for making discrimination allegations? That was the question posed to the Supreme Court yesterday, and the answer will say much about how broadly the court is willing to protect workers from retaliation when the discrimination laws in question do not specifically mention freedom from reprisals. Yesterday's case involving the U.S. Postal Service was the first of two such cases the court will hear this week, and one of several the court has accepted concerning employment discrimination and retaliation.

According to TheWiseMarketer, "Companies that mail their customers monthly printed statements could risk losing up to 33% of those customers if they stopped sending statements, according to research from Henley HeadlightVision, commissioned by the UK's Royal Mail postal service. Utility companies were found to be at most risk of customer defection, with 35% of consumers saying they would switch to a competitor that did provide statements by mail. And while 19% said they would switch banks if they were told they could no longer receive paper statements, 68% of online banking customers said they also like to receive their statements by mail. Given the option of e-mail or web-based statements, 70% of consumers felt that the mail is more secure than internet channels."

Bloomberg has reported that "Deutsche Post AG, Europe's biggest postal service, said it won't make a severance payment to former Chief Executive Officer Klaus Zumwinkel, who quit following allegations of tax evasion."

February 19, 2008

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

• Audit of Statistical Tests for Fiscal Year 2007 – Cost and Revenue Analysis (Report Number FFAR08084) · http://www.uspsoig.gov/foia_files/FF-AR-08-084.pdf

• Fiscal Year 2007 Financial Installation Audit – Stamp Distribution Offices (Report Number FFAR08062) · http://www.uspsoig.gov/foia_files/FF-AR-08-062.pdf

• Fiscal Year 2007 SmartPay® Purchase Card Program (Report Number FFAR08094) · http://www.uspsoig.gov/foia_files/FF-AR-08-094.pdf

• Kansas City, Kansas Processing and Distribution Center Consolidation (Report Number ENAR08001) · http://www.uspsoig.gov/foia_files/EN-AR-08-001.pdf

• Management Advisory – Estimated Supply Chain Management Impact Associated with Waste, Trash, and Recycling Services (Report Number CAMA08001) · http://www.uspsoig.gov/foia_files/CA-MA-08-001.pdf

• New York International Service Center – Inbound International Mail (Report Number FTAR08005) · http://www.uspsoig.gov/foia_files/FT-AR-08-005.pdf

• Oracle Application Control Review – Invoice Processing and Discounts (Report Number ISAR08003) · http://www.uspsoig.gov/foia_files/IS-AR-08-003.pdf

From eWorldWire: "Because up to 40 percent of all people who move in the United States do not report a change of address to the U.S. Postal Service, millions of pieces of direct mail products are wasted annually and translate into volumes of wasted resources for direct mail marketing companies. Featuring a central repository to compile Undeliverable As Addressed (UAA) data, UAA Clearinghouse aims to reduce the carbon footprint left by these pieces of undeliverable mail. The UAA Clearinghouse national database is developed from UAA data from multiple sources, is updated weekly and is sourced out to marketers to prevent the origination and mailing of UAA materials before resources are wasted."

Press Release: "SustainCommWorld is the first international conference and exhibition where all of the key stakeholders groups responsible for enterprise communication and media supply chain decisions will be assembled. The goal of the conference is to stimulate a transformation in the way media supply chain practices and communication products are specified, created, sourced, produced, distributed and managed through their end of life."

A DMM Update concerning plant-verfied drop shipment procedures has been posted on this site.

From EON Businesswire: "ProQuo™ Inc., a company founded to give consumers choice over how businesses use their personal information, today announced the addition of a free catalog preference service, giving consumers even more control over the postal mail they receive."

Postcomm (the British postal regulator) has issued a consultation letter seeking views on Royal Mail's request for exemption from certain requirements of Condition 7 for the Parts Express services and Postcomm's initial assessment of this request.

Hellmail has reported that "The Communication Workers Union (CWU) wants to involve itself in the U.K. postal review process. General Secretary Billy Hayes has published a message to Postcomm. The CWU is alarmed by the suggested changes to the Universal Service Obligation (USO) from Postcomm. Apparently, there are proposals to "reduce current product scope and remove certain service specifications." It is the CWU's view that the introduction of competition has benefitted only large bulk mailers and not social or small business mailers."

The U.S. Postal Service begins delivering an important message from Postmaster General John Potter this week to every household in America. The letter provides advice to protect against identity theft.

Xinhua has reported that "China's postal services, including postal savings, remittance, package delivery and express mail service (EMS), are basically back to normal nationwide, according to the emergency command center on Tuesday. Heavy snow and icy rain since Jan. 10 have hampered parts of the public services in the country's east, central and southern regions. The weather left expressways closed, roads frozen, and prevented postal services."

AllAfrica.com has reported that "Uganda needs to extend the presence of its postal network at least to every sub county in the next 15 years as a way of bringing its vast underclass within reach of this vital communications service. A report commissioned by the Uganda Communications Commission to examine the quality and reach of Uganda's postal services and how to scale them up recommends the implementation of a 15-year master plan worth about $23.5 million. According to the report 78 per cent of this money should be funnelled into capital investments and should be executed in three phases of five years each."

From PR Newswire: "Post Office Ltd today (February 19) opened a six week local public consultation on its Area Plan for London. In line with the criteria and factors set by the Government in its response document, DTI The Post Office Network, Government Response to Public Consultation May 2007 (http://www.dti.gov.uk/consultations/page36024.html) the Area Plan proposes future provision of Post Office(R) services through a network of 681 branches across the area, resulting in the closure of 169 branches. Under the proposals more than 7 million London residents will either see no change to their nearest branch or will remain within one mile (by road distance) of an alternative branch."

Highland Radio has reported that "SDLP Leader and Foyle MLA Mark Durkan says it's ludicrous that customers have to pay an "overseas" charge to send a stamp from Derry to Bridgend. Mark Durkan is calling on the Minister for Postal affairs to reduce the cost of cross border postage."

According to the Associated Press, "Australia's postal service isn't changing the scales on its counters, but it has loosened its weight limits for motorcycle staff as it faces a shortage of slender recruits in an increasingly heavy population. Australia Post lifted the maximum weight for letter carriers who ride its 110 cc motorbikes from the previous 198 pounds to 231 pounds. Postal service spokesman Scott McIntyre said Tuesday the change was made solely because the motorbikes' manufacturer, Honda, advised that they could handle the extra weight without "any significant effects on the stability, handling or safety." McIntyre said the maximum amount of mail carried on the motorbikes would remain unchanged at 55 pounds. "

The Financial Times has reported that "Frank Appel was named chief executive of Deutsche Post as the German mail and logistics group revealed who would succeed the disgraced Klaus Zumwinkel, who is under investigation for alleged tax evasion of €1m ($1.46m). Mr Appel, the former logistics director and a long-time protégé of Mr Zumwinkel, will inherit a number of strategic problems ranging from the group’s severely loss-making US parcels business to the fate of its stake in Postbank, Germany’s largest retail bank. But perhaps his most pressing task is to restore morale and faith at Deutsche Post, which has been rocked since Mr Zumwinkel’s sudden resignation. Deutsche Post officials also point to other challenges Mr Appel will face, not least of which will be the start of difficult wage negotiations at the end of March with unions, as well as the simultaneous end of a no-firing guarantee to employees. Mr Appel will need all the political nous he can muster in the coming months."

Geospatial News has reported that "Accurate digital maps are essential for successful sales territory and expansion planning. The newly revised maps for Australia and New Zealand are the latest update to GfK GeoMarketing's map collection of more than 240 countries. GfK GeoMarketing is the world's largest producer of digital maps for municipalities and postal code districts."

February 18, 2008

IGD Supply Chain Analysis has reported that "DHL and Swedish based grocery retailer, ICA, have signed a partnership agreement to launch a postal service across ICA stores in Sweden. Shoppers visiting their local ICA store will now be able to post and collect parcels via DHL's Servicepoint concept."

Bloomberg has reported that "Deutsche Post AG, Europe's biggest postal service, appointed logistics-division head Frank Appel as chief executive officer, succeeding Klaus Zumwinkel, who quit last week after prosecutors began a tax-evasion probe. Appel, 46, won unanimous support from Deutsche Post's supervisory board and will take over as CEO immediately, the Bonn-based company said in a statement today. The board also accepted Zumwinkel's resignation after 18 years as chief."

UPS has announced that it will reduce ground transit times for customers, accelerating package movements between more than 12 million ZIP code pairings by one day or more. The improvements include lanes originating in eight key states and more than 70 markets and will speed up more than 75,000 packages nationwide every day. This year's initiative is improving service for almost half-a-million customers nationwide without changing their pick-up and delivery times. The new enhancements follow transit time improvements in 2006 that helped more than 1.2 million customers in 11 metropolitan areas.
 

At the most recent meeting of the Board of Directors of the Association for Postal Commerce, the following persons were elected as directors for a three year term: Michael Baranofsky (Christian Book Distributors), Robert Buehler (Accenture), Rich Cicha (Direct Group), Hamilton Davison (American Catalog Mailers Association), Rich Domagala (Mystic Logistics).

According to one contributor to the Miami Herald, "Beneath the somber tales of shrinking revenues and staff cuts is an even more somber reality about the news business: The nearly two-century-old marriage between consumer advertising and journalism is on the rocks. The result is a calamity for the news business."

As the Washington Post has noted, "The U.S. Postal Service is launching a 31-digit bar code that will permit business customers -- advertisers, catalogue and credit card companies -- to track their mail, from the drop-off at a post office to delivery at a home or office. The project is called Intelligent Mail, and it holds the potential to let companies know if customers are telling the truth when they say the check is in the mail."

The Philadelphia Inquirer has published an interview with postal board chairman Alan Kessler.

Hemscott has reported that "TNT NV chief executive officer Peter Bakker has warned that TNT might withdraw from Germany if it loses its court case over the minmium wage its pays its German workers amid a dispute over the liberalisation of the German postal market."

Bloomberg has reported that "TNT NV, Europe's second-biggest express-delivery service, posted the first profit decline in five quarters because of the costs for cutting jobs and quitting U.K. parcel services. TNT put aside 110 million euros in the quarter to prepare for eliminating 6,500 jobs in the next three years at its mail business in the Netherlands, which has been struggling with rising competition and the substitution of personal letters by e- mail."

Emirates Business 24/7 has reported that "The UAE’s booming economy has triggered the rapid growth of the advertising sector, with broadcasting, print, outdoor and cinema adverts all trying to grab the consumer’s attention. Now a new medium is emerging – one that is less expensive and more focused than conventional channels. Direct marketing (DM) – where the advertising message is sent straight to prospective customers through mailshots, e-mail, SMS and other means – is expected to see double-digit growth in the UAE in the next few years."

According to UzReport, "Committee on information and communication technologies of the Legislative Chamber of Oliy Majlis [parliament] of Uzbekistan organized seminar on the "Problems and perspectives of postal service development in Uzbekistan" on 15 February. United Nations Development Programme (UNDP) supported the event. The seminar aimed at reviewing postal service market of Uzbekistan, existing problems and perspectives, modern trends in development of postal services, improving legislation on postal services, etc."

February 17, 2008

As the Wall Street Journal has noted, "The cost of first-class postage is going up a penny in May. Postal rates will generally go up yearly in the month of May. At any time, you can buy Forever stamps for the same price as regular first-class stamps, meaning 41 cents between now and May 12, when rates rise. They're good indefinitely, even after postal rates go up -- avoiding the penny-stamp hassles and eliminating the risk of getting your letters returned for insufficient postage. The Postal Service says it will have five billion Forever stamps in stock to meet increased demand before the May 12 price change."

February 16, 2008

According to Bloomberg, "Klaus Zumwinkel, who resigned as chief executive officer of Deutsche Post AG yesterday, was a ``favorite'' to become the German chief of the United Nations Children's Fund, Frankfurter Rundschau reported, citing unidentified people close to Unicef."

According to veteran postal watcher Alan Robinson, "The Postal Regulatory Commission’s study will look at a number of issues that are critical for business mailers that have never been examined in any economic or policy study to date. This study is critical for the mailing community as it will provide the framework for the next round of postal reform that will likely begin in the 111th Congress in 2009."

The Washington Post has reported that "One of government's chief internal watchdogs resigned yesterday, as Comptroller General David M. Walker, an outspoken gadfly and frequent witness on Capitol Hill, announced his plans to lead a new foundation focused on U.S. fiscal responsibility. Walker has led the Government Accountability Office, Congress's investigative agency, for a decade. Walker's resignation takes effect March 12."

The Commission for Communications Regulation (ComReg) has published its Strategy Statement for the Postal Sector in Ireland for the period 2008 – 2010. The statement sets out ComReg’s vision of a dynamic and competitive market offering an increasingly wide range of competitively-priced, quality postal products and services.

WWBT has reported that "If you live in Henrico County, you could soon have to change your address. Henrico leaders want current Richmond addresses in the county to be changed to Henrico, Virginia. This is a process Henrico leaders have been working for years to complete and it all boils down to money. They say they're losing millions in tax revenue because of address confusion and they want to put an end to it once and for all. The state of Virginia is the only in the country where cities and counties are separate jurisdictions, but zip code boundaries overlap. It's a perplexing postal policy that has Henrico County leaders pulling their hair out."

Multichannel Merchant has reported that "Things have gone from bad to worse for Lillian Vernon. Two months after it cut 25% of its staff, the struggling gifts and housewares cataloger today laid off about half of its full-time staff, or nearly 200 employees. The situation is so dire that Lillian Vernon is actively seeking a new owner, says CEO Michael D. Muoio. Citing devastating increases in postal and parcel rates, coupled with a paper price hikes and a decrease in value of the U.S. dollar, Muoio says the company was left with no alternative than to find a new owner."

February 15, 2008
 
 
The latest issue of the PostCom Bulletin is available online. In this issue:

• Postage prices for market-dominant products are going up in May. It’s the Postal Service’s first price adjustment under the new Postal Accountability and Enhancement Act. Some mail categories within classes will get an increase above the Consumer Price Index and some categories will see an increase below CPI. The new law instructed the USPS to apply the CPI price cap at the class level.

• The Postal Service’s price adjustment filing lacks prices for the Intelligent Mail Barcode full-service or basic-service options. That’s despite mailers’ best hopes that the USPS would include enough information to determine whether the benefits of the IMB will offset the costs mailers expect to incur in implementing the new barcode.

• Todd Butler shares important and practical advice about direct mail with disc mailers in this commentary.

• House schedules hearing on PAEA implementation. Siviter receives Lee Epstein Award. USPS to prepare customers for new barcode. UPU meeting moves to Switzerland from Kenya. Volume of credit card offers drops. Teamsters want Peters’ head over border truck issue. Thefts at UPS marked by chutzpah. ABX, Red Mountain strike a deal to not make a deal – for now.

• Zumwinkel quits Deutsche Post after arrest on tax evasion charges. Royal Mail fined for inattention to mail security. TNT to face pressure to pay German minimum wage there. German courier association says postal minimum wage might disappear. Polish postal service faces large pay hike demands. Swiss Post to outsource building maintenance. India Post considers sale of surplus real estate holdings. DHL might try Romanian CEP takeover. India thwarts La Poste plan to buy CEP operator.

• A list of upcoming postal-related events.

The PostCom Bulletin is distributed via NetGram

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

NZCity has reported that "New Zealand Post is blaming rising delivery costs for a hike in the cost of sending a parcel. Postal services chief Peter Fenton says smaller items such as letters will still cost around 50 cents but the time, effort and cost of manually sorting larger heavier items will be reflected in the new pricing schedule which will come into force from March 28."

Bloomberg shared the announcement that "The government today accepted the offer by Mr. Zumwinkel to resign,'' German Chancellor Angela Merkel told reporters in Berlin. ``I believe this step was inevitable, after what happened. This was more than I could have imagined, and more than many people could have imagined.''

As PC Magazine has noted, "Smartphones Are A Good Fit for Emerging Markets." [EdNote: In fact, many lesser developed countries are opting to use their mobile phone network as their primary means for communication and commerce.]

Reuters has reported that:

• Four of the largest newspaper companies in the United States are teaming up to create an online advertising sales network focused on premium advertisers seeking a national audiences.

• Consumers may be receptive to advertisements on their mobile phones in exchange for free calls or content. [EdNote: You know....services for free in exchange for ads...Yes! Just like the mail. The only difference being you don't need to buy anything to be continuously connected to America's postal network.]

As the Daily Advertiser has noted, "The Post Office has announced that the cost of mailing a first class letter will go up to 42 cents in May, but 50 years ago folks in Lafayette were upset because a stamp would cost them a whole nickel."

Deutsche Welle has reported that "Deutsche Post boss Klaus Zumwinkel is expected to step down on Friday, Feb. 15, as police widened their tax fraud investigation."

The BBC has reported that "Deutsche Post boss Klaus Zumwinkel, who is under investigation for tax evasion, has offered to quit. The offer will be considered by the Deutsche Post board on Monday, but the German government backed the decision. Earlier, Peer Steinbrueck, the German Finance Minister, said the scandal had caused "considerable moral damage." See also The Guardian, Financial Times, New York Times, and  Bloomberg.

The Ottawa Sun has reported that "From hoarding heaps of letters to stealing cash and Christmas cards, Canada Post has logged hundreds of cases of theft and tampering by posties in the past three years. Documents obtained by Sun Media under Access to Information show 114 confirmed cases of mail theft by employees between 2005 and 2007. There were also 77 cases of abandoning mail, 20 incidents of illegal opening of mail and 94 cases when carriers deliberately delayed delivery."

February 14, 2008

icCoventry has reported that "a group of businesses have hit out at Royal Mail after days of delays with their post."

Tampa Bay Online has reported that "Postal inspectors in Puerto Rico flagged a suspicious express mail package bound for Polk County. Turns out it contained nearly 2 pounds of cocaine inside coffee bags, Polk County deputies say."

Union Network International has reported that "Two of the postal unions in New Zealand, the Auckland based Postal Workers Association and the Wellington based Postal Workers Union have amalgamated to become the Postal Workers Union of Aotearoa (PWUA)."

The Postal Regulatory Commission has posted on its website an order that provides substantive information on the Postal Service's filing for rate adjustments of market dominant products.

PowerHome Biz has reported that "Your customers always want to know where their 'stuff' is. VisibleLogistics solves this visibility problem."

As Butler Mailing Services CEO Todd Butler put it: "Why should the disc industry care about direct mail or on-line advertising?  Because when you combine optical media with paper based direct mail you end up with Internet advertising, delivered by the Postal Service.  This hybrid product called multimedia mail, can deliver the interactive multimedia marketers are demanding, to consumers’ front door. Multimedia mail delivers greater functionality than on-line advertising."

The Senate Subcommittee on Financial Services and General Government, Senate Committee on Government Affairs, will hold an oversight hearing at 2:30 p.m., on Wednesday, March 5 on the Implementation of the PAEA of 2006. PRC Chairman Dan Blair and PMG Potter will testify.
 

Time is money. Attendees to the National Postal Forum can save nearly $100 on admission by registering before the end of the month. More than 7,000 industry professionals are expected to attend the mailing industry’s premier trade show and event in Anaheim, CA, this May. An early bird discounted price of $900 is offered through February 29 on full registration to the Forum. Onsite registration increases to $995 for most attendees.For more information and to register, go to npf.org or call 703-218-5015.

The Postal Service's February DMM Update has been posted on this site.

According to Mediapost, "The top 320 magazine Web sites received on average 67.5 million unique visitors per month during the fourth quarter of 2007--an 8.1% jump from the same period in 2006, according to Web data collected by Nielsen Online and compiled by the Magazine Publishers of America. That's a faster rate of growth than the Internet overall, where the total U.S. online population rose 2.4% year-over-year. These figures mean that magazine Web sites reached almost 42% of the total U.S. online population of about 160 million in the fourth quarter, an increase of 7.1% over last year's reach. These users generated 434.4 million visits in the fourth quarter--up 12.3%, while time spent increased 5.5% to an average 1.78 billion minutes per month, implying an average visit duration of just over four minutes. In terms of unique visitors per month, magazine Web sites bested newspapers, where the total unique audience for newspaper Web sites increased 9% in the fourth quarter to an average 62.8 million per month."

Editor's Note: In case you haven't yet heard it, the latest lament by postal officials regarding the challenges that are before them is: "Oh, the annual payment we must make on prefunding health retirement benefits and the need to manage costs within inflation at the class level is a 'broken' business model." Here's a thought. Instead of crying the blues, why not talk with customers and get their thoughts on creating newer and improved postal services that better meet businesses' needs and could create new mail volume and revenue? Wow! Talk with and learn from customers....What a concept! (End of sermon 2.14.08-a)

The House Subcommittee on Financial Services and General Government, Committee on Oversight and Government Reform, will hold an oversight hearing at 2:00 p.m., on Thursday, February 28 in Room 2154 of the House Rayburn Building, on the Implementation of the Postal Accountability and Enhancement Act of 2006. PRC Chairman Dan Blair and PMG Potter will testify.

Eco-Geek wants to know: "Is the Post Office the Future's Recycling Center?"

As the Washington Post has noted, "Neither wind nor rain nor even ice storms kept Joseph S. Winstead from doing his job as a mail processor for the U.S. Postal Service in Washington. But pretending that he was serving on a jury sure did."

According to the Mohave Daily News, "Starting next month, inmates at the Mohave County Jail will only receive postcards from friends or family members. Because of the time and cost to screen incoming mail to inmates and the increasing inmate population, the jail will only accept rectangular postcards no larger than 5-inch by 8-inch beginning March 3. Only rectangular postcards can fit in U.S. Postal Service sorting equipment."

Sources have informed PostCom that "North America’s largest uncoated freesheet (UFS) producers - Domtar, International Paper, Boise Paper, Georgia-Pacific, Blue Ridge Paper, and Glatfelter – separately last week announced to customers a price increase of $60/ton ($3/cwt) for most UFS offset web-based grades and $20/ton ($1/cwt) for sheets, effective with shipments on or after March 3. In addition, there is an upcharge of $20/ton ($1/cwt) on lower basis weight grades and a $40 ton ($2/cwt) upcharge per 10% post consumer waste for recycled grades, reportedly announced by some suppliers. In addition to the $60/ton increase announcement for benchmark 50-lb offset rolls, opaques and other UFS converting grades are scheduled to increase as well including envelope, Magnetic Optical Character Recognition (MOCR) laser bond grades, forms bond, and colors. A $60/ton increase for cut-size paper was announced last month by most suppliers effective with shipments either later this week or into next week."[EdNote: Good grief! It's all part of the reality of print-based communication.]

CEP News has reported that "Deutsche Post Chief Executive Klaus Zumwinkel is involved in a tax evasion investigation. According to information gleaned by German television ZDF, authorities searched Zumwinkel's home and offices Thursday morning. Deutsche Post confirmed the raid. On the part of the prosecutors office it was only confirmed that the searches were part of an "investigation into a tax crime." ZDF reported that it had information there was a warrant out for the arrest of Zumwinkel. Subject of the investigation is according to media reports "tax evasion in the two digit millions." The money is alleged to have been kept in a foundation in Liechtenstein." See also