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More What's New in the Postal World:

December 31, 2009

Intelisent has told its readers that "or the January 4, 2010 price change, postage statements for mailings with a mailing date on or after January 4th must not be submitted until January 4, 2010. (This includes PS Form 3541 Periodicals, PS Form 3600 First-Class, PS Form 3602 Standard Mail, and PS Form 3605 Package Services.) Postage Statements submitted for mailings with a mailing date prior to January 4 must be finalized in the PostalOne! system before January 4. For any postage statement submission method in the PostalOne! System (Mail.dat, Mail.XML, Postal Wizard or hard copy submission) the following three dates must be all before January 4th or all after January 4th: 1. The submission date to the PostalOne! system. 2. The mailing date. 3. The certification date (when the postage statement is finalized.):

The following reports have been posted today on the U.S. Postal Service Office of Inspector General website (http://www.uspsoig.gov/).  If you have additional questions concerning the reports, please contact Agapi Doulaveris at 703-248-2286.
 
 

The Mainichi Daily News has reported that "A government draft of new plans to convert the Japan Post group into a three-company system and boost the government's involvement in Japan's postal system has been unveiled."

Seeking Alpha has noted that "Postal industry dynamics and regulations have been a tailwind for the postal industry in recent years. The company has benefited from legislation that established a shape-based pricing system from a pure weight-based pricing system. Those who sell various mail systems have profited from this trend as customers converted to equipment with this functionality and traded up to more expensive machines. Importantly, we think this tailwind is stalling and should soon become a troublesome headwind in future quarters. We believe this upgrade cycle is largely complete and the market for higher end machines, which have inflated revenues of late, is close to saturation. The nostalgic image of the U.S. postman has quickly become old-fashioned. Mailing volumes worldwide have been stagnant since the new millennium - substitution of electronic forms of communication via the internet is an inevitable process in the long run. Personal mail has steadily migrated to email, text and social-networking sites just as news has shifted from print to desktops. The Great Recession has simply expedited this transformation, as companies have slashed direct-mail budgets and embraced the internet to reduce costs and maintain margins."

From the Federal Register:

Postal Regulatory Commission
NOTICES
Postal Product Price Changes ,
69367–69368 [E9–31034] [TEXT]  [PDF]
69368 [E9–31073] [TEXT]  [PDF]

WREG has reported that "The U.S. Postal Service will hold a public meeting in Tupelo on Jan. 13 to discuss plans to move some of Tupelo's mail processing to Memphis."

The Jackson Sun has reported that "The U.S. Postal Service could move its outgoing mail processing operation from Jackson to Memphis as part of the postal service's attempt to halt losses partially caused by lower mail volumes and increased delivery sites."

The News Register has reported that "The postal service recently completed its Area Mail Processing study that shows the struggling organization can save the $527,000 by moving its outgoing operations from Wheeling to Pittsburgh. The service expects only six employee positions to be affected by the proposed move."

The Environment News Service has reported that "President Barack Obama today ordered federal agencies to establish a national system for dispensing medical countermeasures in the event of a large-scale biological attack, "with anthrax as the primary threat consideration." The U.S. Postal Service would be responsible for delivering the medical countermeasures, such as antibiotics, to residents for self administration across all communities in the United States, according to the President's Executive Order issued today."

WHYY has reported that "The American Postal Workers Union has filed a lawsuit to stop the closing of the Postal Service Distribution Center in Swedesboro, New Jersey, citing failed logic in the decision to close the facility. Mike Gallagher is a spokesman for the union. He says it will cost more to move the facility than to keep it operating in South Jersey."

December 30, 2009

According to Deadtree Edition, "The accounting geniuses at the U.S. Postal Service calculate that the cost of delivering a publication rose 6% in the past year, despite lighter copy weights and various efficiency moves. As a result, the Periodicals class was even more of a money loser in Fiscal Year 2009 than in FY 2008, according to the annual compliance report the USPS released yesterday. The class covered only 76.1% of its costs during the year that ended Sept. 30, down from 84.0% the previous year, according to Postal Service calculations. Those results will fuel claims that Periodicals rates should be increased drastically so that publishers bear their fair share of Postal Service costs."

The Monitor has reported that "the European Investment Bank (EIB) and Poste Italiane signed a contract for 200 million to finance the company’s multiyear development plan."

Advertising Age has noted that "Hardly a day goes by without an announcement about the release of a new digital-reader gadget or some publisher hanging its hopes on such a device. Just this month, Sports Illustrated announced it is developing an embellished digital version of its magazine designed to be displayed on portable tablet computers. And Hearst is placing its bets on e-reader technology as well, planning to launch its own device optimized for showcasing ads. It's refreshing, actually, to see heavy-hitters from an industry beset with record-breaking circulation declines and sliding advertising revenue taking a new, hard look at their value proposition. There's little doubt that we all understand the dire circumstances these businesses are facing. In just the last 24 months, more than 700 magazines have shut down in the U.S. and Canada, according to Oxbridge Communications' MediaFinder.com, as consumers migrate online and the costs of printing, paper and postage continue to climb in direct reciprocal proportion to audience and revenue losses. Advertising sales, the true life support of the industry, have taken a nosedive as well, and online revenues, while growing, have not been nearly enough to stem the bleeding."

According to Yahoo! News, "For more than 60 years, TV stations have broadcast news, sports and entertainment for free and made their money by showing commercials. That might not work much longer. The business model is unraveling at ABC, CBS, NBC and Fox and the local stations that carry the networks' programming. Cable TV and the Web have fractured the audience for free TV and siphoned its ad dollars. The recession has squeezed advertising further, forcing broadcasters to accelerate their push for new revenue to pay for programming."

The Monitor has reported that "while authorities say this form of trafficking is as old as the mail service itself, local and federal authorities are increasingly turning their attention to those who exploit the U.S. mail and private parcel services as one of the widest loopholes in ongoing counternarcotic efforts."

According to The Globe and Mail, "If anyone should have a good handle on the global economy, it's Scott Davis, the chairman and chief executive officer of delivery giant UPS. The Atlanta-based company delivered about 3.9 billion packages and documents last year and has operations on every major continent. UPS is spending $72-million to expand its Canadian operations but it's also making a big push in Asia, particularly China, where the road has been bumpier than expected."

As DM News has noted, "The US Postal Service has reported a net loss of $255 million for November, and a $476 million net loss for October and November, the first two months of its 2010 fiscal year. Mail volume for November was down 4% from the previous year, although its revenue for the month was up 0.9%."

The Sydney Morning Herald has reported that "A mid all the talk about a ''People's Bank'' and the possible involvement of the country's postal network in such a proposal, Australia Post is facing a real challenge in deciding what sort of business it will be within the next 10 years. While it is a publicly owned corporation and a monopoly supplier in its key operation of delivering letters, it should be remembered that the Post is no stranger to competition." See also Business Day.

According to Media Daily News, "Some of the worst defeats for newspapers in 2009 came in online advertising."

MediaPost has reported that "Americans aren't just buying more online because of the recession -- they're liking it better. A new survey of shoppers at popular Web sites reveals increases in satisfaction with every leading retailer."

From the Federal Register:

Postal Service
PROPOSED RULES
Unpaid and Shortpaid Information-Based Indicia Postage Meters and PC Postage Products; Comment Period Extended ,
69049 [E9–30867]

[TEXT]  [PDF]

The Pictou County News has reported that "A Nova Scotia politician has sent nearly 100 letters to Canada Post from residents upset about possible changes to their rural mail delivery."

The Washington Post has reported that:

  • Uncle Sam may be hiring, but he's also trimming staff in some corners of the government, as agencies suffer through a budget squeeze or shift their focus. They're dangling $25,000 buyout offers and varying amounts for early retirement, depending on a worker's full government tenure. The Postal Service extended such offers to 30,000 employees -- by far the most of any government agency this year. A little more than 21,000 have accepted the offers, which expire Thursday.
  • Consumers are feeling a little better about the economy but home prices are flattening out after an unexpected rebound in the spring and summer

At the Postal Regulatory Commission:  The Postal Service's Annual Compliance Report covering FY 2009 has been posted on the PRC web site.

December 29, 2009

Thaindian News has reported that "Nearly all Dutch send their new year’s greeting by post cards, according to a poll by TNT Post released on Tuesday. The poll held by the national postal company shows that 96 percent of the Dutch send their New Year’s wishes by post, rather than online. Around 39 percent of the interviewed people said they send some of their New Year’s wishes by e-mail, while 21 percent said they send some through social networking websites such as Hyves, which is extremely popular in the Netherlands."

The Baltic Course has reported that "According to Estonian Post, people sent numerous Christmas cards and other forms of greeting with the help of the postal enterprise, despite the economic depression."

The USPS Preliminary Financial Information (unaudited) for November, 2009 has been posted on the Postal Regulatory Commission web site.

December 28, 2009

The latest blog entry has been posted on the U.S. Postal Service Office of Inspector General’s Internet site “Pushing the Envelope.” The public, mailers, postal employees, and other stakeholders are invited to weigh in on the online discussions taking place. To view the site, visit http://blog.uspsoig.gov/
 
  • Total Factor Productivity (TFP)When people try to discover whether the Postal Service is operating more efficiently or not, they often talk about Total Factor Productivity (TFP). TFP measures the ratio of the Postal Service’s outputs to its inputs,  What do you think about TFP as a productivity measure?
 
You can visit Office of Inspector General’s public website at:  www.uspsoig.gov.  You can also follow us on Twitter at: http://twitter.com/OIGUSPS.  If you have additional questions, please contact Communication and Work Life Director Agapi Doulaveris at 703.248.2286.

According to the Courier, Express, and Postal Observer, "A recent editorial by the Washington Times and a columnist in the Los Angeles Times provide illustrations as to how ideological predilections and reporting on a deadline produce more heat and less light about how to solve the problems facing the Postal Service. These commentaries reflect the seasonal interest in the Postal Service use it to ship packages and send correspondence that they rarely send in the other 11 months of the year."

From PR Newswire: "If the shoe fits, wear it; if it doesn't, return it with one of the package return services available from the U.S. Postal Service. Merchants, shippers and consumers looking for reliable, cost-effective solutions for returning holiday gift merchandise have several options available through Returns@Ease at usps.com."

According to Advertising Age, "depending on which media forecast you look at, U.S. advertising spending in 2009 declined for the second or third year in a row. And U.S. ad spending in 2010 will either show a meager gain or fall a bit more. But the bottom line is brutally clear: 2009 saw the sharpest percentage decline in ad spending since the Great Depression."

According to the Columbia Missourian, "For 35 years, prophets of the "paperless office" have been waiting for any convincing shred of evidence that Americans are less committed to paper. The paradox of the digital age, at least until the economy soured, is that a Web-connected, wireless world was using far more paper than it did before trashing its typewriters. With greater access to information comes the convenience of the printer, the 100-copy click and the Mapquest directions you toss in your car. Meanwhile, book sales and global paper production keep rising."

As The Almanac has noted, "Faced with dwindling revenue thanks to the economic recession and something called the Internet, the U.S. Postal Service is cutting back. The cuts have come primarily through attrition, according to Menlo Park Postmaster Jeff Gaskill. He said that much of the decline in revenue had come with businesses cutting back on sending mailers."

The Miami Herald has reported that "thousands of other Latin American and Caribbean immigrants living in South Florida use small and mid-sized courier and freight companies owned by fellow immigrants to send packages, documents and other goods to friends and families throughout the region. These couriers, which range from single individuals working from home to companies with 30 or more employees and offices located in other parts of the United States, offer a wide range of services to families and businesses. In some cases, they compete with giant express and logistics services like UPS and FedEx, carrying packages, documents and freight. Some companies also offer personalized services, such as purchasing spare parts in the United States and sending them to international customers."

The Birmingham Mail has reported that "MuslimRoyal Mail workers blasted the company for including pork in its seemingly meat-free Christmas lunch option."

Livemint has reported that "At least a dozen logistics firms are lining up to enter the Rs8,000 crore mail and small cargo carrier industry in India, attracted by the premium it commands over the state-run postal system in an economy powered by expanding domestic consumption.The Indian unit of the $34 billion (Rs1.6 trillion) global logistics firm FedEx Corp. has already started domestic services. The express freight sector has been growing at around 20% annually since 2005, and employs close to one million people, according to a report released by a five-member team of professors and researchers at the Indian Institute of Management, Calcutta, in May. While the sector is fragmented, with at least 2,500 firms, a few large ones including Blue Dart Express Ltd and First Flight Couriers Ltd control almost 80% of the market.New entrants will have to compete with Blue Dart, in which Germany's courier and logistics firm DHL Express has an 80% stake; Gati Ltd; DTDC Ltd, in which Reliance-Anil Dhirubhai Ambani Group has a strategic equity stake; First Flight; Safexpress Pvt. Ltd; Transport Corp. of India Ltd; and state-owned India Post. Dedicated freight carriers such as Aryan Cargo Express Pvt. Ltd and Quikjet Cargo Airlines Pvt. Ltd, in which the Tata group has a stake, have similar plans.Other global players are also in India: Dutch firm TNT NV acquired Secunderabad-based Associated Road Carriers Ltd (known as Speedage) in September 2006, while Georgia, US-based United Parcel Service Inc., or UPS, has a tie-up with AFL Pvt. Ltd."

December 27, 2009

As the Morning Call has noted, "A UPS spokesman, Norman Black, was more forthcoming when I put the same question to him. ''We believe that the government plays a role in terms of ensuring that every mailbox is reached every day,'' he said. ''That is not a responsibility that UPS would want.'' That makes sense. The big private shippers probably would be happy to cherry-pick profitable urban routes but would want nothing to do with having to haul mail up and down unprofitable rural roads. It seems to me that the only privatization scheme that stands even a remote chance of working would be to break the Postal Service network into hundreds of regions and territories, and then have local companies compete for mail-delivery rights in each area. The Postal Service isn't perfect. But it shows why public options are important -- and, in some cases, necessary."

According to The Express, "Royal Mail paid out more than £1million every month last year to customers whose post was lost, damaged or delayed. More than 1,000 complaints a day were dealt with and compensation to customers totalled £13million. And with prolonged strike action that crippled parts of the postal service in summer and autumn this year’s figures could well be worse."

Swissinfo has reported that "Switzerland’s postal authorities say they processed around 15 million parcels to Swiss households on time before Christmas, that’s about two for every inhabitant. Swiss Post said that parcel volumes reached their peak in the week before Christmas when one million parcels were going through sorting centres every day."

From the Federal Register:

Postal Regulatory Commission
PROPOSED RULES
Periodic Reporting ,
68556–68557 [E9–30477]

[TEXT]  [PDF]

Postal Service
RULES
Move Update Assessment Charges for Automation and Presort First–Class Mail and All Standard Mail Mailings ,
68538–68541 [E9–30619]

[TEXT]  [PDF]

The Bowling Green Daily News has reported that "While officials have not made a decision, a possible consolidation of Bowling Green’s mail processing operations could have a widespread impact. The U.S. Postal Service is studying Bowling Green’s mail processing operations to determine whether they should be moved to Nashville."

December 26, 2009

The Gazette-Mail has reported that "Residents up in arms over the suspension of operations at a tiny Webster County post office have prompted federal authorities to launch a national review of how the U.S. Postal Service goes about closing many rural post offices."

The Nation has reported that "Pakistan Postal Services (PPS) Addl. Director General (Ops) Fazli Sattar Khan has that Pakistan Post is committed to make secure and timely delivery of mail, money and material at the doorsteps of the customers at affordable cost. Talking to APP, he said that Pakistan Post has a broad and varied role to play beyond provision of communication link for individuals and businesses. “Keeping pace with the changing communications market, Pakistan Post is emphasizing in the use of new communication and information technologies to move beyond what is traditionally regarded as a its core postal business” he said." See also the Daily Times.

December 25, 2009

According to the Wall Street Journal, "For Madison Avenue, the decade came in with a dot-com bang, as an influx of business from free-wheeling Silicon Valley start-ups drove advertising to new heights financially and creatively. It is going out on one of the industry's most sobering notes since the Depression, and 2010 looks less than welcoming."

From PR Minds: "Global Markets Direct, the leading business information provider, presents an in-depth strategic and operational analysis of United States Postal Service. The report provides a comprehensive insight into the company, including business structure and operations, executive biographies and key competitors. The hallmark of the report is the detailed strategic analysis and Global Markets Direct’s views on the company."

According to Kyodo News, "Postal life insurance benefits were not likely paid out to policyholders in around 490,000 cases before the privatization of Japan's postal services began in October 2007."

Practical eCommerce has told its readers that "the UPS Average Rate Increase is going to be about 4.9%. UPS Air and International Services will increase a net 4.9% through a combination of a 6.9% increase in the base rates, "offset" by a 2% reduction in the fuel surcharge. Shippers of light weight packages will see a 5.9% increase. Average increase is calculated on base rates only. Surcharges are also going up. Address Correction Air goes from $10.00 to $11.00, Ground increases from $8.00 to $10.00. That is a heavy 25% increase for getting an address wrong.

"Other surcharge increases for UPS:

  • Extended Area Surcharge Export & Import increases $2.00 to $24.00, or $0.24 per pound whichever is greater
  • Residential Surcharges increase $0.10 for Air to $2.50 and $0.15 for Ground to $2.20.
  • Large Package Surcharge is up $5.00 (now it's $50.00.)
  • Delivery Area Surcharges: o Commercial $1.60 will now be $1.70 o Residential $2.40 will now be $2.50 o Extended Commercial $1.60 will now be $1.70 o Extended Residential $2.65 will now be $2.75"

December 24, 2009

The Green Autoblog has reported that "After the call for offers by La Poste, the French Postal Service, a 250-unit contract for electric delivery vans has been awarded to the Citroën Berlingo First. The model, which is based on the standard Citroën Berlingo, features batteries and a powertrain developed by Venturi. The specs? A three-phase electric motor good for 42 kW (57hp) using nickel and sodium chlorine batteries that provides a range of 100 km (about 60 miles) with a maximum speed of 110 km/h. Using a standard European 220V plug, an 80 percent charge takes 5 hours. Life expectancy is about 1,000 cycles. Work-wise, the Citroën Berlingo First is able to load up to 3 cubic meters (105 cu. ft.) and 500 kg (1100 lb) of payload. These electric vans will join the first 100 electric quads, called Quadéo, which are used for the postal service in the 7th and 8th districts of Paris."

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

H.R. 4399: "Subject to amounts made available in advance in appropriations Acts, the Secretary of Energy, in consultation with the United States Postal Service, shall establish a program, to be carried out in 2 phases, to award funds for the manufacture, testing, and delivery of at least 20,000 electric drive United States Postal Service Long Life Vehicles or other road vehicles 10 for local postal delivery, to further the deployment of electric drive vehicles and the development of grid services using electric drive vehicles, including Vehicle-to-Grid."

Check out the latest article posted on the Postal Journal: "So Far, No Information Model Beats Print" With print evaporating into the ether, what will become of information communications generally, and business communications specifically?

Save The Date for the 2010 NPF April 11-14 in Nashville, TN Registration for the 2010 National Postal Forum is now open! Click here to register online now. (Or click here to download a printable registration form) (Click here to download the 2010 NPF promotional catalog) Check back periodically for updates.

The following report has been posted on the U.S. Postal Service Office of Inspector General website (http://www.uspsoig.gov/).  If you have additional questions concerning a report, please contact Agapi Doulaveris at 703.248.2286. Saved Grade Status and Temporary Assignments – Postal Service Headquarters (Report Number HM-MA-10-001)

At the Postal Regulatory Commission: Sunshine Act Meetings TIME AND DATE: Wednesday, January 6, 2010 at 11 a.m. PLACE: Commission conference room, 901 New York Avenue, NW., Suite 200, Washington, DC 20268-0001. STATUS: Parts of this meeting will be open to the public. The rest of the meeting will be closed to the public. MATTERS TO BE CONSIDERED: PORTIONS OPEN TO THE PUBLIC: 1. Review of postal-related legislative activity. 2. Reports on international activities. 3. Review of active cases. 4. Report on recent activities of Joint Periodical Task Force and status of report to the Congress pursuant to section 708 of the Postal Accountability and Enhancement Act (PAEA) of 2006. 5. Review of an internal assessment of Public Representative functions under the PAEA. PORTIONS CLOSED TO THE PUBLIC: 6. Status of pending litigation (USPS v. PRC). Page 2 of 2 7. Personnel matters—consideration of Commission staff vacancies.

Arutz Sheva has reported that "A public opinion survey conducted annually by two university professors shows that public confidence in public servants and services in 2009 has hit an 8-year-high. Among the high scorers were the Postal Service and IDF soldiers, while police and politicians fared poorly."

The U.S. Department of Energy's (DOE) National Renewable Energy Laboratory (NREL) has collected and analyzed fuel economy, maintenance and other vehicle performance data from UPS's first generation hybrid diesel step delivery vans powered by an Eaton Corp. electric hybrid propulsion system. The diesel hybrid delivery vans improved the on-road fuel economy by 28.9 percent resulting in a 15 percent improvement in total cost per mile while maintaining similar reliability and operational performance as compared to conventional vehicles.

The Pittsburgh Post-Gazette has noted that "it might just be the biggest little post office in Pennsylvania. In Greene Township, Greene County, where the Garards Fort post office is 10 feet by 18 feet of white clapboard quaintness, it doesn't take much to form a crowd. "If you get three or four people, it gets a little tight," said Postmaster Vivian Bauer, dressed for the season in a vest embroidered with robins and sparrows over a red satin, button-down shirt. The area where customers can congregate is only about 5 feet by 10 feet -- smaller when crowded by packages that don't fit in the back room....There are even smaller post offices in West Virginia and in the Western United States."

According to Straits Times, you can "ask a child to write a letter these days, and he is more likely to turn on a computer than pick up a pen. But when it comes to writing to Santa Claus, hard copy is still preferred. Over the years, the number of letters sent to the North Pole has steadily increased, said SingPost, the nation's post office. In 2002, there were about 100. This year, 250 letters have been sent. The rise is remarkable for the shift in human communication over the last decade. Worldwide, postal offices are facing significant dips in mail volume as e-mail becomes increasingly common, especially among the young."

According to the Toronto Sun, "Canada Post mail carriers inside the Charles St. station got a lesson in health and safety yesterday -- two days after some of their colleagues spoke out in the Sun when management stamped out their Christmas decorations. An officer from the Toronto local of the Canadian Union of Postal Workers was irate when she learned workers at the station showed up to sort the last remnants of holiday mail yesterday and were told they couldn't use fridges, microwaves, coffee makers or even turn their radios on."

The Ledbury Reporter has noted that "Ledbury Scouts expect to have delivered up to 2,000 Christmas cards and raised more than £500 by today (Christmas Eve). The group has been offering an alternative postal service, dropping off seasonal mail all over the town, in the run up to the big day tomorrow."

Trading Markets has reported that "Bangladesh Post Office has undertaken an automation project with an aim to render affordable and quality services to the general people, making the whole process easier, faster and cheaper with the boon of information technology. The Bangladeshi government's postal department has assigned Synesis IT Limited, a leading local IT company, to implement the project titled "Web-Based Application Software for Process Automation of Postal Department", said a press release of the Synesis IT Thursday."

Kuensel Online has reported that "The Thailand Post will help Bhutan Post develop and reform itself as a postal organization, according to a memorandum of understanding (MoU) that was signed between the two organisations in Dochula, Thimphu on December 18. Integrating ICT in postal operations, improving processing of international mail in transit via Thailand, creating ICT-based postal services in rural areas, developing philately and related products, and printing and issuing commemorative stamps on agreed themes are some of the areas that the two postal organisations will cooperate in."

Financiarul has reported that "Communication and IT Minister designate Gabriel Sandu said during the hearings at the Parliament’s specialized commissions, on Tuesday, that he is not going to give the green light to the privatization of the Romanian Post or Radiocom, during his term in office."

Reuters has reported that "Russian state bank VEB needs 30 billion roubles ($993 million) in the first stage of setting up a federal postal bank, RIA agency reported on Thursday quoting a director general of Russian Post."

The Guernsey Press has reported that "Guernsey Post has a year to address its inefficiencies or face a further reduction of its monopoly, Healthspan has warned. The company responded yesterday to news that the States-owned mail service will face increased competition after the Office of Utility Regulation reduced its ‘reserved area’ of the market. Guernsey Post will, from April, have a monopoly only over letters and large letters costing less than £1 to post. The current reserved area gives it a monopoly over all types of mail costing less than £1.35. Packages and packets will now be open to full competition."

The Gazette has reported that "Laurel residents who need to send a package or buy stamps now have another alternative to waiting in line at the Main Street post office. The United States Postal Service opened a contract postal unit off Cherry Lane, and some residents said the new location has already become the go-to place for their postal needs. Folks said he plans to buy stamps and ship packages at the new location even though the Main Street office is closer to his home. The up-to-30-minute lines that appear at the downtown office throughout the day are enough of a hassle for folks to travel a bit out of the way, he said." [EdNote: More, more....]

According to the Postal Regulatory Commission's latest calculation of the 12-month average change in CPI-U, through November, the cumulative inflation rate that controls the cap on market-dominant postal services was -.570%.

The Guardian has reported that "The Royal Mail and the Communication Workers Union (CWU) are now in their second month of talks to resolve the dispute, which caused widespread disruption of deliveries all over Britain and led some large customers to say they would seek alternative providers. The talks will resume next month, when both sides hope to announce a long-term agreement over Royal Mail's modernisation programme and how it affects workers' hours, job security and workload. However, along with pay, it is this last issue that is at the forefront of postal workers' concerns."

According to CNN, "Rep. Anna Eshoo wrote the Commercial Advertisement Loudness Mitigation Act, or CALM, which mandates that TV commercials be no louder than the programs in which they appear. Representatives unanimously passed the bill last month and sent it to the Senate for consideration."

December 23, 2009

CNN has reported that "An armed disabled man was holding five people hostage nearly four hours after his takeover of a Virginia post office on Wednesday, the town's mayor said. The man entered the Wytheville, Virginia, post office about 2:30 p.m. and fired a shot, Mayor Trent Crewe said. No one has been hurt, but three postal workers and two customers are being held hostage, he said. There also are reports that the man has a "device" and it appears the man's car, parked outside the office, is equipped with some type of device, Crewe said. He did not elaborate on what the device could be."

The latest report has been posted on the U.S. Postal Service Office of Inspector General website (http://www.uspsoig.gov/).  If you have additional questions concerning a report, please contact Agapi Doulaveris at 703.248.2286. City Delivery Efficiency Review – San Francisco Napoleon Street Station (Report Number DR-AR-10-002)

FamilySecurityMatters has noted that "Whenever you think general incompetence by those who purport to serve by the consent of the governed can’t get any worse, think again: “Ross stumps for melon stamp” (HopeStar.com, 12/21/09) Never mind the healthcare debate; forget the federal deficit; isolate the immigration issues; there are bigger things to do in Washington, and Fourth District U.S. Representative Mike Ross, D-Ar., is in the middle of the effort. Ross is working in Washington to have a commemorative postage stamp dedicated to the watermelon, putting Hope and Hempstead County into the spotlight as the center of all things watermelon."

The Baltic Course has reported that "Yesterday evening, the government ordered the state-owned joint-stock postal company Latvijas Pasts to make a buyout offer to the company Mono so as to buy out Mono's shares in the joint-stock company Latvijas Pasta nodalu tikls (Latvian Post Offices' Network) for their nominal value of LVL 24,000."

According to Ice News, "1,500 postbags bound for Iceland are currently stuck in Copenhagen and look unlikely to be delivered before Christmas. Icelandic postal workers say this is the first time such a delay has occurred, as post from the USA used to come direct to Iceland with Icelandair. The US Postal Service now sends its mail to large swathes of Europe with SAS via mainland Scandinavia. Icelanders are therefore not the only ones likely to go without their Christmas cards and presents from the States."

GenevaLunch has reported that "The Swiss postal service, La Poste, will be keeping only 30 of 114 post offices that were reviewed as part of cost-cutting measures begun in April 2009. A nearly 50 percent decline in mailed letters and packages plus a 17 percent drop in postal payments in less than a decade is behind a major restructuring of services to the public."

According to OneNewsNow, "Although the United States Postal Service (USPS) expects to lose $8 billion this year, some of its employees are "living high on the hog in the midst of a recession," all at taxpayers' expense. President Obama said Monday that American needs a government that is more efficient, effective, and fiscally responsible. "We can't continue to spend as if deficits don't have consequences, as if waste doesn't matter, as if the hard-earned tax dollars of the American people can be treated like Monopoly money," he said. "That's what we've seen time and time again." One government agency the president may be referring to is the United States Postal Service. An audit by the USPS inspector general recently found $800,000 in unjustified and "imprudent" purchases over a five-month period."

ChannelOnline has reported that "More competition will be introduced into Guernsey's Postal Sector from April. Guernsey Post will only be allowed to have a monopoly on items costing up to a pound. The OUR expects UK companies like City Mail to operate in the island soon. UK stamps are also set to rise by 2 pence."

According to Army.mil, "Since the start of HooahMail just 21 days ago, more than 3,540 accounts have been set up by families and friends of Soldiers in Afghanistan, and some 1,690 letters delivered. The letters, many accompanied by photos, have been delivered to those Soldiers often in less than 24 hours. HooahMail, a one-year pilot program that began Dec. 1, allows Soldiers in Afghanistan to keep a physical reminder of their loved ones with them to be read and re-read whether in the field or at their operating base. The way the hybrid mail system works is family and friends establish free accounts at www.HooahMail.us where they create and send their letters which can include black and white photos not to exceed 4 inches by 7 inches. Those letters are then transmitted through the HooahMail secure server in Bagram and Kandahar, Afghanistan. From there, the Army postal office downloads the letters to a special machine which prints, folds and seals the letters. The final stop is delivery to Soldiers through unit mail call."

The Financial has reported that "Twenty-eight percent (28%) of Americans say they are using the U.S. Postal Service less this holiday season than in past years, but adults overwhelmingly believe there will still be a need for the Postal Service 10 years from now."

The Age has reported that "postal unions have vowed to continue industrial action into the new year and even to target mail during the federal election after they yesterday eased back on pre-Christmas strikes."

Business First has reported that "FedEx Express has launched a new global advertising campaign titled “FedEx Delivers to a Changing World.” The campaign highlights how FedEx Express provides access to new markets, supports local communities and connects the world in sustainable ways."

December 22, 2009

The Daily Mail has reported that "Royal Mail is to put up the price of first and second class stamps by 2p, it was announced today. A first class stamp will go up to 41p while second class will become 32p in April. The increases are fractionally below the 3p rise that had been approved in principle by the industry watchdog Postcomm." See also ICM.

The Business Spectator has reported that "Australia Post has appointed former banker Ahmed Fahour as it's new managing director, according to media reports. After a four month search, the government-owned postal service has settled on Mr Fahour, who is National Australia Bank Ltd's former boss of Australian operations. Mr Fahour will assume the role from Graeme John, who has held the job for 16 years."

ABC News has reported that "About 250 postal workers in Tasmania will strike today."

CTV has reported that "Canada Post says language regulations require postal workers in the National Capital Region to be bilingual. However, the agency says it recognizes the need for bilingualism in Pakenham and other small communities are often determined by people who don't live in the area. In the face of bitter opposition, a popular postmistress in Pakenham will be able to keep her job while Canada Post continues to assess the need for a bilingual postal worker."

The Tennessean published the following story: "Last week I mailed a small Christmas package. I weighed it on my kitchen scale, put on 14 stamps, plus one for good measure, and walked to the corner mailbox. The sign on the mailbox informed me that anything over 13 ounces could not be put in the mailbox — a security matter. I drove to a post office, parked in a 12-minute space, and joined the line. Twenty minutes later, I had reached a white sign that said “WAIT HERE.” The clerk at the counter said, “Next.” At last, I could drop off my package. He looked at the package and said, “There are too many stamps on this.” It was a matter of national security, I was told. It seems that terrorists who send things through the mail tend to put a lot of stamps on the package — one of the things the post office watches for. “You will get this one back,” he said. “You should have used a postage meter, or had a post office meter it. Metered mail is considered safe.”

Post and Parcel has reported that "Casual employees have been drafted in by Australia Post to help with deliveries as postal workers strike today (22 December) and tomorrow."

According to the Courier, Express, and Postal Observer, "The postal industry is in the midst of efforts worldwide to reduce its workforce. The combination of automation, more efficient operating networks and declining demand all require reductions in production employees far greater than attrition allows."

ABC News has reported that "Northern Territory postal workers will go on strike tomorrow. Postal workers in other states and territories have gone on strike today for better pay and conditions. But Graham Lorraine from the NT and South Australian Communications Union says today's actions will already have ramifications for services in the Territory. "There is definitely going to be delays," he said." ABC News also has reported that "striking postal workers in Queensland, New South Wales and the ACT have called off the second day of their stoppage." See also this from ABC News.

The National Association of Major Mail Users is reminding its members that on "the January 11 key changes to the:
International Incentive Letter-post services – Premium, Standard and Per Item:
Rate changes: http://www.canadapost.ca/tools/pg/supportdocuments/lp_pricesheet-2010_e.pdf
Addressing requirements: the envelope or wrapping of an item may bear only one sender’s address, and one addressee’s address. The sender’s address must be visible on the outside of the item and be located in the country of posting of the item. Learn more: http://www.canadapost.ca/tools/pg/supportdocuments/LPsupportdocuments-e.asp
Parcel Rates – 2010 price changes will apply to the Domestic, USA and International Parcel Services and associated options. Learn more: http://www.canadapost.ca/cpo/mc/business/productsservices/shipping/ratescoming.jsf
Book Presort Rates & All Rate/Specification Highlights: Learn more – go here: http://www.thekmrgroup.com/eview/eview_132/2010%20Parcel%20RA%20Cust%20Letter_FINAL%20EN.pdf.

According to the Washington Times, "Last-minute shoppers, beware. If you are running behind in mailing Christmas gifts to loved ones, and you absolutely, positively need your packages to arrive on time, it's safest to avoid the post office. The U.S. Postal Service is so slow that even a fruit cake could decompose before making it to its intended recipient. This is government bureaucracy at its worst."

December 21, 2009

The latest issue of Logistics Management is available online.

According to Post and Parcel, "2009 will be remembered as a difficult year for the mail and express industries as companies across the globe continued to battle the height of recession. But towards the end of the year, many businesses were beginning to see the green shoots of economic recovery. Furthermore, it was interesting to monitor developments across the sector as major organisations began to realise the full extent of the technological revolution - with the expansion of e-commerce and Internet-based products in full swing."

In light of the introduction last week of Congressman Jos E. Serrano's new legislation - H.R. 4399, The American Electric Vehicle Manufacturing Act or "e-Drive" - MST and Parcel wanted to ask an early proponent of this concept, PRC Chairman Ruth Goldway, her impressions of this legislation and the whole concept of "greening" the USPS fleet to Mailing Systems Technology.

The latest blog entry has been posted today on the U.S. Postal Service Office of Inspector General's Internet sitePushing the Envelope. The public, mailers, postal employees, and other stakeholders are invited to weigh in on the online discussions taking place. To view the site, visit http://blog.uspsoig.gov/.
  • At the Post Office.  Last Monday was predicted to be the busiest day of the year for Post Offices across the country.  Have you visited a Post Office recently? If so, we would like to hear your story.  Why were you there?  What worked well? What didn't work well?

The Azerbaijan Business Center has reported that "Azerpocht (national postal operator) is ongoing work on construction and commissioning of new postal offices in regions of the country in connection with implementation of the State Programme of Socio-Economic Development of Regions of Azerbaijan. "All the new postal buildings were designed in national style and equipped with advanced technical facilities conforming to all modern standards, Azerpocht says."

Be sure to check out Postalnews.tv where field update on "scanning excellence" by USPS COO Pat Donahoe has been posted.

Trading Markets has reported that "SkyPostal Networks, a private postal network in Latin America, announced that it has entered into a co-marketing agreement for its PuntoMio online shopping facilitator under the name GlobalShop, with Garanti Bank, which represents American Express Cardmembers in Turkey. Under the agreement, GlobalShop provides Garanti Bank customers with a way to shop from the U.S., by merging the convenience of comparison shopping through a searchable online shopping portal with a virtual U.S. address which they use to receive their online purchases. GlobalShop will allow Garanti Bank customers the opportunity to shop at more than 1.7 million American retail stores, catalogs and websites from the comfort of their own home. GlobalShop bridges the gap between the online international shopper and U.S.-based Internet merchants from the time of purchase through final international delivery to the customer's home or office."

The Prague Daily Monitor has reported that "Petr Sedlacek, CEO of Czech post office Ceska posta, will leave his post at the end of the year and Friday he announced his resignation to Interior Minister Martin Pecina, Ceska posta spokeswoman Marta Selicharova told CTK. Sedlacek said there was not enough political agreement about where Ceska posta should be heading. Its transformation into a joint-stock company has been stopped. In particular the Social Democrats (CSSD) have reportedly pushed for Sedlacek's departure. According to earlier information of media, Sedlacek got an offer from another company."

World Radio Switzerland has reported that "The Swiss Postal Service could become like Nestlé, according the postal service’s chairman of the board, Claude Béglé. In a weekend interview with the Sonntag Zeitung, Béglé said that in the future, the yellow giant will have its headquarters in Switzerland, will develop products here, pay taxes here - but will earn a good deal of its money abroad. Part of that foreign growth strategy includes developing an email system called Swiss Post Solutions. Béglé says companies in Europe and the Middle East have already been approached about purchasing the system and are reportedly interested. The Postal Service hopes the development of an email system will help offset the decline in traditional mail, which is expected to drop by one third over the next five years."

The Mail Tribune has reported that "The president of the Southern Oregon postal workers union is asking the public to denounce the Postal Service's plan to consolidate the Medford and Central Point post offices."

Transport Intelligence has reported that "Unconfirmed reports have appeared in the French press suggesting that Deutsche Post-DHL has agreed to sell its French domestic DHL Express business to the French investment company Caravelle. According to various reports, the deal has yet to be formally approved by the DP-DHL management board. The value of the deal is also unclear with suggestions that Caravelle plans to pay between $200m and $300m for DHL France. Deutsche-Post DHL has, as yet, made no statement."

NEXT has reported that "The Nigerian Postal Service (NIPOST) intercepted 62 scam letters containing cheques for $2.4 million; £666,757 and 4, 645 euros last October, the Postmaster General of the Federation, Ibrahim M Baba, said at the weekend. Others, according to him, include 179 blank cheques, $4,500 suspected fake cash, 10 drivers’ licences, three international passports and three visa cards."

The National Association of Major Mail Users has reported that "Alexis Zamkow, General Manager, Direct Marketing Data Products & Services for Canada Post, provided an update on undeliverable mail. She stated that 5 to 7% of addressed mail (140 million pieces annually) is undeliverable. The largest group is movers (72%), followed by inaccurate addresses (27%). Living relatives of deceased addressees only account for 1% of undeliverable mail, however, are quite vocal due to the sensitivity of the situation."

According to the New York Times, "Shipping at Christmas is a hectic thing, enough to give Santa migraines. So it is no surprise that many people avoid lines at the post office for the one-stop convenience of a U.P.S. Store, where one can send things by United States mail as well as by parcel post. At some U.P.S. Store franchises in Manhattan, however, clerks do not always tell customers that they may be paying a Grinch-like surcharge when they send something by the United States mail."

ABC News has reported that "Australia Post says it is bringing in casual staff to deal with a planned national postal workers' strike from midnight tonight." See also the Courier Mail, The Age, and the Sydney Morning Herald.

The Moscow Times has reported that "Russia plans to secure the future of bankruptcy escapee Svyazbank by turning it into a postal bank with twice as many branches as Sberbank."

According to Hellmail, "digital solutions already form part of a range of services provided by mail operators and a glimpse perhaps, of the impact that digital technology and software might have on the size and structure of European postal services in future."

December 20, 2009

According to the Postal Employee Network, "The United States Postal Service® (Postal Service) plans to conduct an ongoing data comparison program to identify any current Postal Service employees who are required by law to register on a public registry of sex offenders."

WETM has noted that "In an effort to try and save money the U.S. Postal Service is considering to cut its Saturday delivery or raise postal prices.  A number of people were taking advantage of the Saturday shipping to get their gifts out in Horseheads on Saturday. Officials say they might ask congress before the end of the year to end Saturday's services for next year to save money. Some customers are nervous about the possibility of less postal service on the weekends." 

 From the Federal Register:

Postal Regulatory Commission
RULES
New Postal Product ,
67816–67819 [E9–30230]

[TEXT]  [PDF]

The Los Angeles Times wants to know: "There's been a lot of talk about a public option for health insurance. But what about the public option for mail? The U.S. Postal Service offers universal coverage -- that is, it guarantees that mail can be sent and received by everyone, regardless of preexisting conditions, such as living in the boonies. It also loses tons of money. In its most recent fiscal year, which ended Sept. 30, the postal service lost $3.8 billion. That's after losing a total of $7.8 billion over the previous two years. Thanks to the sputtering economy and a steady transition of business and personal communications to the Internet, the postal service says it delivered 26 billion fewer pieces of mail this year, a nearly 13% drop from the year before. It's thus fair to wonder: Can this system be saved? Put another way, is it time we privatized the postal service?"

December 19, 2009

The CBC has reported that "Moya Greene, chief executive of Canada Post Corp. knows Canada Post needs to change quickly to avoid slinking into irrelevance. Starting next year, it will tap the capital markets in a major way for the first time, aiming to raise more than $1-billion to fund upgrades to its aging plants and equipment. The move is part of a wider transformation taking place at the Crown corporation that will see it unleashed from certain regulatory restrictions and push further into new revenue streams to offset its main — and declining — letter business. In Canada, Christmas mail volumes are down by more than 15% over 2007 levels. The business lost over the past 12 months will rip $500-million from Canada Post’s revenue line and cause it to miss its 2009 profit forecast of $117-million before taxes."

Stuff.co.nz has reported that "The gift forecast this Christmas is down distinctly on last year, and there's a good chance we'll have to pay the price for it with higher mail prices. "People are getting 5-10% fewer presents this year," said NZ Post's acting chief executive Sam Knowles, commenting on the falling mail volumes that are plaguing the giant state-owned enterprise. "People are being more prudent with their money, and that is coming through in the attitude towards spending." While some of the plunge in mail is the fault of the stuttering economy, the trend of people sending fewer letters is a fact of life for NZ Post and leads to speculation New Zealand will follow the Australian example of cutting Saturday deliveries and increasing mail prices."

Here's an interesting piece: "Reader's Digest, Revised And Condensed"

The Washington Post has reported that "although last-minute mailers are still adding to all those waiting baskets, wicker sleighs and refrigerator doors, there are signs that plenty of people are giving hard-copy greetings a complete pass this time around. "We see a 10 to 15 percent decline in the overall volume of mailed paper greeting cards this year," said Neil Hendry of Datamonitor, a New York-based retail analysis firm. "There are two principal reasons: technology and the economy."

lfpress has reported that "Postal workers in London are giving a new and much more positive meaning to the expression "going postal." About 135 postal workers filled a mail truck yesterday with enough food to make a Christmas feast and enough toys to bring smiles to children staying at Rotholme Women's and Family Shelter on Stanley St. That act of charity by postal workers is hardly unique -- they've been a regular at Rotholme for 30 years, as reliable as Santa Claus, with grins to match.

The New York Times has reported that "The space is instantly familiar, and instantly depressing. With its fluorescent lights, linoleum counters and stale air, it could pass for a Department of Motor Vehicles office or a passport agency. But it’s the Kensington Post Office in Brooklyn, which has been reviled by many as the worst in New York City. At another kind of operation, people might spend months preparing for the big moment, then stand at the door eagerly awaiting customers. But at the Kensington Post Office last week, it might as well have been August: no extra services, not even a well-meaning supervisor striding around in a dopey Santa hat. The customers returned the embrace with equal warmth. “It’s a disaster,” said Sara Kugler, who lives in the neighborhood. “The people who work here are awful to people."

The Mail Tribune has reported that "Postal customers and city officials had more questions than answers this week after learning the Postal Service is considering "efficiencies" for its Medford and Central Point operations, including possible consolidation. By year's end, post office officials hope to identify ways of making the two locations more cost-effective, a process that could include anything from selling and relocation, reducing square footage at either site or selling the buildings and leasing space from the new owners."

According to the Dayton Daily News, "There are long lines at the post office and packages sometimes arrive late or are left in odd places. Despite these common complaints, the Cincinnati U.S. Postal Service district — which includes Dayton, Cincinnati, Toledo and portions of northern Kentucky and Indiana — boasts a high on-time rate, a postal official said. That’s no comfort to Joanna Showell of Bellbrook. In recent months, a half-dozen cards and gifts sent to family members in New York or Florida, including money she sent her father because he won’t cash checks, have arrived late or not at all. The public relations consultant says she won’t trust the service to deliver this Christmas season, the postal service’s busiest time."

From the CNN "Investigations Unit": The U.S. Postal Service spent more than $792,000 "without justification" on meals and events in one five-month period even as it reported losing $3.8 billion this year, the agency's inspector general says in a report. Employees spent $792,022 on meals and external events "without justification for food purchases, purchased alcohol without officer approval and exceeded the dollar limit for meals," the report says. [EdNote: This is old news....I guess it takes this long for CNN to get with it.]

December 18, 2009

David M. Walker served as the seventh Comptroller General of the United States and was the CEO of the U.S. Government Accountability Office (GAO) from 1998 to 2008. He is currently the president and CEO of the Peter G. Peterson Foundation, Walker is a frequent speaker, writer, commentator, and congressional witness.His new book COMEBACK AMERICA (Random House; On Sale: January 12, 2010) includes a range of insightful and informative ideas all taking into account the Obama Administration's current efforts to-date. It addresses a range of policy, operational and political reforms needed to ensure that America's future will be better than its past.

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

  • Here are some suggestions offered by one of PostCom's postal veterans regarding IMb readiness. (A reprise of a piece that only partially made it into the Bulletin last week.)
  • Earlier this month, the Association for Postal Commerce (PostCom) and the Direct Marketing Association, Inc. (DMA) offer comments in response to the Postal Regulatory Commission Order No. 292 within Docket No. RM2009-11, Proposed Rulemaking on Periodic Reporting of Service Performance Measurements and Customer Satisfaction. Other comments included the Parcel Shippers Association, Mail Order Association of America, Bank of America, Direct Marketing Association, and the Postal Service.
  • This week, FedEx Corp. reported earnings of $1.10 per diluted share for the second quarter ended November 30, compared to $1.58 per diluted share a year ago. FedEx said that the decline in revenue and earnings was a result of lower yields due to a substantial decrease in fuel surcharges year over year.
  • The Courier, Express, and Postal Observer said, “The United States Postal Service is unique among publicly-owned postal operators in that no executive department has the "shareholder" responsibility for the enterprise. By default, this responsibility has fallen on Congress. Since the passage of the PRA, Congress has tended to downplay its shareholder role which has resulted in Congressional actions that undermine the competitiveness of the Postal Service and the value of the enterprise.”
  • The Courier, Express, and Postal Observer points out that “when DHL exited from its United States domestic business, most commentators suggested that shippers would face only the duopoly of UPS and FedEx. The Postal Service was considered a marginal player that could not meet the service quality needs of business to business customers. More importantly, it rarely was price competitive on shipments over 5 pounds.”
  • Rag Content said that the Postal Service has begun to lay out what it wants in the year ahead by speaking to stakeholders at various meetings including MTAC, hill visits, association meetings, and to the press. It has been clear in its request for two legislative actions to "right this sinking ship."
  • USPS Governor Kessler reappointed. USPS shortens closure list to under 170. Global postal industry sets 20% carbon reduction target by 2020. USPS submits billing determinants for Q4 of FY09 to PRC. USPS busiest day of the year. USPS processes billionth IM piece. USPS goes green with electric T3. FedEx hub begins receiving incentive funds. USPS slow to place injured workers in productive jobs, GAO says. Time for USPS fleet to go green, lawmakers says. A guide to magazines that have ceased publication.
  • Updates on dockets at the Postal Regulatory Commission.
  • Updates on postal matters published in the Federal Register.
  • An update on DMM Advisory notices issued by the U.S. Postal Service.
  • A review of postal news from around the world.
  • PostCom welcomes its newest member.
  • Postal previews
Hey! You've not been getting the weekly PostCom Bulletin--the best postal newsletter anywhere...bar none?  Send us by email your name, company, company title, postal and email address. Get a chance to see what you've been missing.

The PostCom Bulletin is distributed via NetGram

According to Advertising Age, "are marketing and media giants ignoring the fact that their primary communications channels are based on environmentally "toxic" pixels? And are some of these companies engaging in "tree washing" or "gray washing" as well as "green washing?" These intriguing issues were at the center of this week's Sustainable Media Climate Symposium in Manhattan. Don Carli, director of the Institute for Sustainable Communication, enlightened many by quantifying how the carbon footprint of electric-powered digital media is nearly as large and environmentally onerous as that of the notorious paper-making industry."[EdNote: Notorious??]

The New York Times has reported that "FedEx said on Thursday that its second-quarter profit fell 30 percent on a 10 percent decline in revenue and issued a disappointing forecast for the current period, setting off a 6 percent decline in its share price."

According to one Baltimore Sun blogger, "Britain's bank payment overseers have voted to phase out paper checks by 2018."

YLE.fi has reported that "the volume of parcels has dropped slightly, volumes have decreased by about 13 percent compared to last year,” explained Kirsi Paakari, Itella Operations Manager.While domestic postal activity has declined slightly, officials report an increase in the number of packages imported from abroad. The increasing popularity of online shopping, particularly during the Christmas season, has seen an increase in imported consumer goods. Itella’s Paakari said."

From PRWeb: "DMTI Spatial Inc. (DMTI), Canada’s leading provider of Location Intelligence solutions, has announced the newest release of Location Hub®. Available as an online hosted service, Location Hub can now be accessed on a subscription basis, requiring no downloads, installations, hardware or storage requirements. This industry-leading software is an address management solution with analytic and visualization tools that enables companies to utilize address content, already existing in their databases, to rapidly transform their business."

The Union has reported that "Despite the possibility that local mail could shift from being processed in the Marysville area to Sacramento, local postmasters said Thursday service would not slow in western Nevada County. Employees in the U.S. Mail Processing Center in Olivehurst fear losing some of their approximately 140 jobs there. They also have said the switch to Sacramento would slow mail service in the 959 ZIP codes of northeastern California."

According to AllAfrica.com, "The Ministry of Post and Telecommunications seems not be resting until Liberia's postal system becomes very effective and puts on par with other postal systems across the globe, which calls for tackling the constant theft of mail."

Ceske Noviny has reported that "Petr Sedlacek, CEO of Czech post office Ceska posta, will leave his post at the end of the year and today he announced his resignation to Interior Minister Martin Pecina"

As the Frederick News Post noted, "ZIP code use extends beyond things postal. Private, government and public entities use the digital groupings to numerous ends, ranging from targeting populations in demographic research and establishing insurance rates to estimating housing values, remitting state tax revenue back to localities and gearing advertising messages. It's easy to see why this widespread reliance on ZIP codes can create problems for those of us whose mailing addresses don't match our cities of residence."

According to Federal News Radio, "USPS cutting losses, targets Saturday delivery....The Postal Service says they'll have to ask Congress to end Saturday mail delivery next year in order to save money. You can download the recording.

From Federal News Radio: "The Postal Service is operating with a tremendous deficit. They're deep in the red, and sinking deeper. Managers are looking for ways to trim costs, including a reassessment of "modified work assignments." Postal workers who are injured on the job are given these modified assignments, which cost the Postal Service more than a billion dollars just last year. Phil Herr is the Director of the Physical Infrastructure Team at GAO, which reviewed the Postal Service's "National Reassessment Process." Download the recording of this session.

Deadtree Edition has reported that "Several industries and occupations related to printed materials will be among those with the worst job losses through 2018, a new government report predicts. As if we didn’t already know that. The Postal Service, printing, and newspaper publishing will be in the top 10 for employment declines between 2008 and 2018, the Bureau of Labor Statistics report says. The 30 occupations with the largest projected decreases during that period include “postal service mail sorters, processors, and processing machine operators” (-30%); “paper goods machine setters, operators, and tenders” (-21%); “postal service clerks” (-18%); and “mail clerks and mail machine operators, except postal service” (-11%)."

Transport Intelligence has reported that "DHL Global Forwarding has stated that it is to secure additional capacity from commercial carriers to avoid capacity constraints between North Asia and Europe throughout the first quarter of 2010. In November and December 2009, the company said that the global airfreight industry faced a strong increase in demand for transportation space, which contributed to backlogs of goods shipped from China to Europe. This resulted in steep increases in freight rates."

Reuters has reported that "Russia plans to secure the future of bankruptcy escapee Svyazbank by turning it into a postal bank with twice as many branches as current largest lender Sberbank."

From the Federal Register:

Postal Regulatory Commission
NOTICES
New Postal Product ,
67255–67256 [E9–30072]

[TEXT]  [PDF]

67256–67257 [E9–30073]

[TEXT]  [PDF]

USA Today has reported that "he U.S. Postal Service says there was an 11% decline in cancellations of first-class cards and letters from Dec. 1-13 — when most Americans mail holiday cards — compared to 2008. Hallmark spokeswoman Deidre Mize says about 1.8 billion Christmas cards will be sent this year, down from 1.9 billion to 2 billion in recent years. The use of Hallmark e-cards sent via e-mail is dropping, she says."

Exclusive EV World Premium podcast interview with Postal Regulatory Commission Chairman Ruth Goldway.

Press Release: "BCC Software, a BÖWE BELL + HOWELL company and a leading developer of high-performance mailing technology solutions, has launched a new website, Inside Intelligent Mail, specifically dedicated to the next-generation Intelligent Mail® program launched by the United States Postal Service®. The new website – accessible to all mailers, regardless of whether they are working with BCC – is designed to guide postal professionals in adopting and maximizing use of the IM™ barcode and the services it makes available. Inside Intelligent Mail (www.bccsoftware.com/IMB) takes mailers step by step through the process of getting started with the IM barcode. Additional resources include an FAQ section, a Glossary of postal terms, and links to BCC’s recorded Intelligent Mail-specific web events."

December 17, 2009


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

Powered Industrial Vehicle Management System at the Tampa Processing and Distribution Center (Report Number NO-AR-10-001).  Management at the Tampa Processing and Distribution Center (P&DC) used the Powered Industrial Vehicle Management System (PIVMS) as intended and consequently realized efficiency improvements. The PIVMS was used as a tool to manage equipment operator workhours, identify opportunities to reduce vehicle inventory, and ensure internal controls over safety and security were in place. In addition by using PIVMS management reduced vehicle equipment and transferred excess equipment from the Tampa P&DC to elsewhere in the Southeast Area. Since the Tampa P&DC used the PIVMS as intended, we are not making any recommendations in this report.
Fiscal Year 2009 Financial Installation Audits – Post Offices, Stations, and Branches (Report Number FF-AR-10-045)
Gateway District Financial Accountability Risk Audit (Report Number FF-AR-10-047)
Greater South Carolina District Financial Risk Audit (Report Number FF-AR-10-049)
 

Dow Jones has reported that "-Deutsche Post AG doesn't expect to lose its right to exempt large customers from paying value-added tax, or VAT, for postal services, Deutsche Post spokesman Dirk Klasen told Dow Jones Newswires Thursday. This comes after Chancellor Angela Merkel's cabinet Wednesday agreed to abolishing the value-added tax exemption that Deutsche Post AG offers large companies. The cabinet's aim is to bring taxation for postal services in line with European Union regulations following a European Court of Justice ruling in September stating German postal exemption regulations didn't ensure a level playing field in the European postal market."

FedEx Corp. today reported earnings of $1.10 per diluted share for the second quarter ended November 30, compared to $1.58 per diluted share a year ago. “Positive momentum in the global economy and continued execution of our business strategy drove volume growth across all FedEx transportation segments, highlighted by increased international shipments,” said Frederick W. Smith, FedEx Corp. chairman, president and chief executive officer. “We have taken decisive actions during the economic downturn to reduce expenses while expanding our networks in growth markets. We are providing outstanding service levels during our busiest shipping season thanks to the dedication of our more than 275,000 team members.”

Media Daily News has reported that "In case the outlook was not already gloomy enough, a new industry forecast from Kubas Associates, based on a survey of 500 newspaper executives this November, contains grim tidings for the newspaper business in the coming year. Among the discouraging findings: publishers seem to agree that advertising revenues will continue to decline in 2010, although less rapidly (which passes for "improvement" nowadays), with a 0.2% overall decline."

The Wall Street Journal has reported that "The economy appears to have begun recovering after the worst recession in half a century. But businesses ranging from shoemakers to financial services to luxury hotels don't expect American consumers to return to their spendthrift ways anytime soon. They see consumers emerging from the punishing downturn with a new mind-set: careful, practical, more socially conscious and embarrassed by flashy shows of wealth. Much as the 1930s shaped the spending habits of an entire generation, many companies now anticipate a shift in consumer behavior that persists even after jobs and growth get back closer to normal."

The Frederick Gazette has reported that "About 150,000 pieces of mail delivered through Frederick mailboxes may no longer don a Frederick postmark, under proposed changes announced by the U.S. Postal Service."

As the Financial Times has noted, "most Indian consumers accumulate their gold savings in the form of jewellery, or to a lesser extent, gold bullion. But efforts are under way to encourage people, particularly lower income earners, to keep their gold savings in electronic accounts at the local post office."

The Gainesville Sun has reported that "A former mail carrier was sentenced Wednesday to three years of federal probation for stockpiling at least 125,000 pieces of mail over several years. She also was ordered to receive a mental health evaluation."

Trading Markets has reported that "Pitney Bowes Inc. plans to slash as many as 10 percent of the Stamford-based company's work force in the next two years."


The latest issue of Postal Technology International is now available on the publication's web site.

According to the Appeal-Democrat, "Judging by the reaction of the 100 or so people who crowded into a third-floor meeting room in downtown Marysville Wednesday evening, the idea of closing a U.S. Postal Service sorting facility in Olivehurst should be stamped "return to sender." Local public officials and sorting facility employees grumbled through much of the presentation on a closure study by postal service officials, before asking pointed questions and making even more pointed comments."

The Washington Post has reported that "Rep. Jose E. Serrano (D-N.Y.) wants to put the postal fleet to use during off-hours to help alleviate the nation's overworked power grids. He introduced a bill Wednesday that would give eventually give $2 billion to the Energy Department and Postal Service to convert current mail trucks or manufacture new ones that use vehicle-to-grid technology or V2G, as it's known."

ABC Online has reported that "Postal workers in Queensland are back at work after Fair Work Australia ordered them not to take strike action planned for this week and Monday. The union representing Australia Post workers in Queensland is threatening more stoppages next week if a dispute cannot be settled."

Press Release: "ADS, the technology company behind Docutrail – a three year-old service that saves companies time and money managing Certified Mail – has now announced the availability of simple Application Programming Interfaces (API’s) that enable mail shops to invoke a unique and complete set of Certified Mail management services with minimal development. The SimpleCertifiedMail.com platform is now available. Developers can visit http://simplecertifiedmail.com/support/developers.shtml to get access to all the development tools and support."

December 16, 2009

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

Despite decreasing turnover in the first half of the year (April- September) Royal Mail was able to increase its operating profit.
Last week two large-scale investors took a stake in TNT. The two American hedgefonds AIMCo and Jana Partners which are considered as agressive investors together acquired 5.39% of TNT’s shares. Allegedly the shares worth 580m dollars were bought since December 3. According to analysts the hedgefonds will target a break-up of TNT. Temporarily TNT shares rose by 6%.
Fast paced ending: Michel Kunz, CEO of Swiss Post, got replaced after only eight and a half months.
’The Germans pay to much postage’ and the development of competition is ’miserable’.
TNT asked the Government of the Netherlands not to dilute the measures for securing working conditions which were enacted in spring.
Australias consumer watchdog refused the post’s price hike intended for 2010. Last week the Australian Competition and Consumer Commission (ACCC) announced that the data provided by Australia Post did not contain enough information about the methods used to forecast the development of costs and demand. The ACCC gave credit for the fact, that ’the relationship between demand and costs is a critical issue’.
German TV magazine »WISO« (14.12) tested parcel services with an staggering outcome for GLS. Five of ten parcels were damaged upon reception. A result Royal Mail’s subsidiary can not understand.
Last Friday the Universal Postal Union and the Internet Corporation for Assigned Names and Numbers (ICANN) signed an agreement concerning the use of the domain ending ’.post’
Pay negotiations at Austrian Post have been brought to a successful ending. After several weeks of negotiations both sides agreed upon an increase of 1.65% (at least 25 euros).
An increased demand during Christmas trade has caused a volume growth for UPS Hong Kong.

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.)

[PostCom logo

PostCom welcomes its newest member: GameFly, Inc. 5340 Alla Road, Suite 110 Los Angeles, CA 90066-7049 represented by David Hodess, CEO

WTAE has noted that "More people than ever are shopping online for Christmas gifts. The convenience of having packages delivered right to your front door is an attractive option for busy consumers. Some shoppers may be comfortable letting home delivery services leave the package on the front porch. But Channel 4 Action News anchor Sally Wiggin reported that thieves are also looking to take advantage of just such a practice."

Not yet depressed about the future of print media? Then take a gander at the Advertising Age feature on periodicals that have ceased publication.

The Federal Times has reported that "The U.S. Postal Service needs to convince its managers to support a three-year-old program that provides alternative jobs for postal employees injured at work, according to a new report from the Government Accountability Office. GAO said the National Reassessment Program (NRP), launched in 2006, has helped to reduce the number of "make-work" jobs at the Postal Service. Injured employees are often assigned to menial tasks, like answering phones or greeting customers at post offices, that don't match their skills or boost the agency's overall productivity. NRP tries to match injured employees with more productive jobs. But the GAO report said senior managers across the country have been slow to adopt the program."

According to The Guardian, "one of the most interesting statements in Monday's Panorama programme on Royal Mail deliveries came from Michael Fehilly, the manager of Gatwick Mail Centre. The reporter, Vivian White, was talking about "the competition … But it's an odd form of competition … TNT and the others bring their trucks to Gatwick, and the Royal Mail does the final sorting and delivering of its rivals' mail." Michael Fehilly said: "We don't have a choice. We are in a regulated business. We have to offer that service."

Tunisia Online News has reported that "The African Development Bank in Tunis has recently approved the financing of two studies related respectively to the Maghrebi broad band internet network and the new legal framework in the postal sector, as well as a study on the ICT sector in the Maghreb."

The Wall Street Journal has reported that "German Chancellor Angela Merkel's Cabinet agreed Wednesday to abolish the value-added tax exemption that Deutsche Post AG offered large companies for postal delivery, the finance ministry said. A ministry statement said that as of July 1, 2010 companies will need to pay the tax, and that the exemption will only remain for private customers whose business is a "fundamental service."

ABC Online has reported that "Postal workers around the country walked off the job today. The union representing postal workers says a dispute over pay and conditions has escalated and strike action is likely to continue over the next week." See also the Sydney Morning Herald.

Media Daily News has reported that "A regional survey of 8,500 senior advertising, marketing and media executives by Round2 Communications found that 72% predict they will increase their spending on digital media in the coming year. Along with the good news for digital media, the survey delivered some bad news for traditional: 86% of the respondents say they expect their spending on traditional media to remain even or decline in 2010."

The postal blog Intelisent has posted a piece on "USPS “Spin” on Full Service Intelligent Mail." Among the items noted: "Speaking from personal experience, and relaying the experiences I have been hearing from many, many mailers and mail owners - speedy postage statements in PostalOne! is BEST CASE SCENARIO. Mailers are reporting HOURS of processing time, multiple glitches, errors, etc, all jeopardizing getting mail out in a timely manner. Patches and workarounds and future fixes are the norm. First off - go to the USPS RIBBS page, Intelligent Mail, Latest News, and in the links box look for a document entitled “PostalOne! Critical Issues List”. There are currently 22 pages of critical issues, many with fixes unavialble until late next year, many with no fix dates determined at all. And this is the Public list. There is also an internal USPS list."

The Star-Ledger has reported that "employees at three New Jersey mail processing plants are worried they might not have their jobs soon after the season is through. The U.S. Postal Service is still studying whether to consolidate processing operations at the facilities — which union workers say could mean the closure of plants in Whippany and Newark and the loss of a shift in Edison."

The Berkshire Eagle has reported that "The United States Postal Service, traditionally one of the nation’s most reliable institutions, won’t be getting any holiday cheer from Richard S. Backer anytime soon. The Pittsfield man failed to receive mail for two delivery days in a row. But, he said, he’s most frustrated by the seeming lack of concern demonstrated by postal officials, none of whom sounded particularly penitent when he talked with them on the phone. "The post office was unresponsive. Actually, they didn’t really care," said the Beverly Street resident, who said he never got a clear, succinct answer about what led to the problem. According to Backer, some residents of Beverly, Wellesley and Andover streets in Southeast Pittsfield failed to get their mail on Saturday and Monday. And, he added, the poor service comes at the worst possible time -- as the holiday gift-giving season enters the home stretch and credit card bills start rolling in."

The Herald Sun has reported that "Australia Post has applied to the federal court for an injunction to stop "illegal" picketing at key distribution centres." See also ABC Online.

The Age has reported that "The postal workers’ union has agreed to stop the delay of mail trucks and harassment of workers attempting to cross picket lines at Victorian postal centres. About a quarter of staff did not show up for work today as part of the ongoing industrial dispute which began yesterday evening. In the Federal Court this afternoon, lawyers for Australia Post sought an urgent injunction to discontinue the alleged abuse and obstruction of trucks by 6pm to ensure the movement of mail."

Penki News has reported that "The European Commission has endorsed, under EU state aid rules, a Polish scheme intended to compensate the Polish Post for net losses incurred in discharging its public service obligations between 2006 and 2011."

The Baltic Course has reported that "In a closed meeting on December 16, the government of Latvia supported breaking the contract, signed by Latvia Post (Latvijas pasts) with the company Mono and ruled that further on Latvia Post will be itself in charge of developing its branch office."

Erictric has reported that "United Parcel Service, commonly known as UPS, announced today that they will be releasing an official [and long overdue] application for BlackBerry smartphones tomorrow. The application will be available in the BlackBerry App World for free."

FedEx Office (formerly FedEx Kinko’s), a subsidiary of FedEx Corp., has launched Out of Office a blog designed to provide unexpected ideas for creative projects at home and on the job.  Just in time for the busy holiday season, customers can turn to Out of Office for a fresh perspective on how to use FedEx Office products and services to plan parties, create quick and easy stocking stuffers or homemade gifts, and more.  Even past the holidays and throughout the year, Out of Office will serve as a destination for readers who like to see where their imaginations can take them when they’re allowed to be “out of office.”  The Out of Office blog is located at http://outofoffice.fedex.com.

President Barack Obama has appointed Postal Service Board of Governors member Alan C. Kessler of Philadelphia to a second term that will expire Dec. 8, 2015. Kessler, who was first appointed by President Clinton in 2000, served as chairman of the Board of Governors from January 2008 to January 2009. He currently serves as co-chair of the board’s Governance and Strategic Planning Committee and served as vice chairman of the board from 2005 until his election as chairman in January 2008.

Media Daily News has reported that "Despite the rapid decline of the newspaper industry, consumers still turn to Sunday circulars as their primary source of coupons, according to a new Borrell study. Coupon use in general has gone up 36% in the past 12 months -- aided in large part by the recession and changing attitudes toward spending . Sunday circulars still account for 70% of all coupons clipped, according to the study."

From the Federal Register:

Postal Regulatory Commission
RULES
New Postal Product ,
66242–66245 [E9–29721]

[TEXT]  [PDF]

Postal Service
RULES
Advertisements for Animals and Sharp Instruments for Use in Animal Fighting Ventures are Nonmailable ,
66241–66242 [E9–29723]

[TEXT]  [PDF]

At the PRC: Latest USPS list of Stations and Branches being examined for discontinuance

And then there's this from the Courier, Express, and Postal Observer: "The United States Postal Service has announced that the list of post offices being closed is down to 168. The process of whittling the number of possible closures from 3,600 to 168 raise real questions about what the Postal Service was doing when it made the original announcement of closures. Why did the Postal Service even started the process with such a long list of possible closing Post Offices? Why did it not do the due diligence and confidential local market research prior to announcing possible closings rather than once the closings were placed on the Postal Regulatory Commission that would have have whittled the original list down to a smaller number that could be easily justified? How much did the entire process cost the Postal Service in the time of lawyers and other employees involved in the process? How much did the entire process cost the Postal Service in lost credibility before the Postal Regulatory Commission and on Capital Hill? Would the Postal Service have had a different result in post office closings if it had a plan in place for each possible closing for replacing the location with a contract or franchised outlet?"

The DigTriad News has reported that "The FedEx hub at Piedmont Triad International Airport has received about $2,000,000 since opening in June. Jim McCluskey, a company spokesman, says most of the incentives involved waived sales taxes on material used in the hub's construction. The company could get more than $115,000,000 in incentives if it reaches certain employment benchmarks. Currently, they employ about 200 workers. FedEx originally planned to hire 600 to 700 people for sorting operations, but scaled back because of the economy."

December 15, 2009

Welcome to PostCom Radio
A Postcom Postal Podcast

Join PostCom President Gene Del Polito, PostCom Vice President Jessica Lowrance, and U.S. Postal Service President of Mailing and Shipping Services Robert Bernstock  in a discussion of  the Postal Service's plans to develop its mail and package delivery services.

Swissinfo has reported that "The director-general of the Swiss postal group has been sacked with immediate effect by the governing board. The board announced Michel Kunz’s departure in a statement issued on Monday night, following a “difference of opinion on fundamental questions”.

Parcel2Go has reported that "With the volume of letters and parcels increasingly significantly over the festive period, it is more likely that postmen will deliver cards saying 'Sorry, you were out', a Royal Mail worker has claimed."

ABC News has reported that "The union representing postal workers says it will hold work stoppages for two days from tomorrow.The CEPU says its members at Australia Post will not check postage on letters and parcels, meaning people could mail them for free."

From PR Newswire: "Fewer than 170 offices remain under review for possible consolidation under the U.S. Postal Service station and branch consolidation initiative. Today's announcement updates a review process begun earlier this summer that initially examined about 3,300 stations and branches in urban and suburban areas across the country, focusing on facilities in relatively close proximity to one another. The initiative looks to determine where consolidations might be feasible without compromising customer access to postal services."

December 14, 2009

The latest blog entry has been posted today on the U.S. Postal Service Office of Inspector General’s Internet site “Pushing the Envelope.” The public, mailers, postal employees, and other stakeholders are invited to weigh in on the online discussions taking place. To view the site, visit http://blog.uspsoig.gov/
 
  • The Changing Change of Address System.  Did you know that one in seven people in the United States change their address each year?  Naturally, this creates a tremendous challenge for the Postal Service.  What do you think about the Postal Service’s change-of-address process?  How can it be improved?
 
You can visit Office of Inspector General’s public website at:  www.uspsoig.govYou can also follow us on Twitter at: http://twitter.com/OIGUSPS.  If you have additional questions, please contact Communication and Work Life Director Agapi Doulaveris at 703.248.2286.

CNN Money has reported that "T3 Motion, Inc. has been working with the U.S. Postal Service (U.S.P.S.) on initiatives to "green" their massive neighborhood delivery fleet. As part of their effort to find more sustainable, environmentally friendly vehicle technologies, the Postal Service has been identifying new alternatives that are less dependent on petroleum-based fuels to replace 195,000 neighborhood delivery vehicles of its total 220,000 vehicles which represents the world's largest civilian fleet. The engineering and design collaboration between the U.S. Postal Service and T3 Motion, Inc. led to the development of a T3 Series Electric Stand-up Vehicle (ESV) specialized cargo rack system, on-board parcel storage, and a custom solar-powered alarmed trailer. The T3s have been deployed for mail delivery in Irvine, CA, San Diego, CA, Sun City, AZ, and two cities in south Florida."

KCBS radio did an interview with Postal Regulatory Commission Chairman Ruth Goldway.

The Courier, Express, and Postal Observer has noted that "The United States Postal Service is unique among publicly-owned postal operators in that no executive department has the "shareholder." responsibility for the enterprise. By default, this responsibility has fallen on Congress. Since the passage of the PRA, Congress has tended to downplay its shareholder role which has resulted in Congressional actions that undermine the competitiveness of the Postal Service and the value of the enterprise. The problem with Congress reflects the inherent conflict between its interest in the Postal Service as shareholder and its institutional interest in reelection. As such, the Postal Service has frequently become a tool to help balance the Federal Budget, with these actions constantly weakening the financial position of the Postal Service. (See. USPS-OIG white paper, Federal Budget Treatment of the Postal Service) Other actions reflect institutional interests in serving constituent groups that could be affected by postal business strategies, many times to the detriment of the enterprise. The Postal Service has not helped its shareholder see these conflicts as its business strategy has been opaque to even many seasoned observers. Its current strategy focusing on reducing costs by reducing retail locations and delivery days raise this question again."

From PR Newswire: "Monday, December 14th, will be the busiest mailing day of the year according to the US Postal Service and FedEx. For shoppers, this means that free shipping deadlines are rapidly approaching. According to FreeShipping.info's analysis of the Top 500 online retailers, nearly two-thirds say their free standard shipping deadlines to ensure Christmas delivery will be on or before December 18. The average order size to qualify for free shipping is $52."

"Steve Lawson, editor for Hellmail Postal News, said today that it was 'disappointing' that a recent survey by Consumer Focus revealed that over half of the UK's postal users had received a ‘Sorry You Were Out’ card even though someone was at home to receive the item. "This is disappointing although I have to say, a rather unscientific survey, but I am concerned that the Royal Mail's efficiency savings seem to be impacting on the most time-consuming areas of its operations including the cancelling of stamps. "We must ensure that the Postal Services Act and any future legislation actually meets the needs of consumers and that any monitoring of Royal Mail's performance is targetted correctly. I am not a great advocate of measures to protect consumers that rely wholly on targets as these can breed a culture of subterfuge and manipulation of figures. Royal Mail staff are under enormous pressure to meet efficiency savings and it is I imagine, rather tempting for some to circumvent the rules just to meet such targets. That can have a counter-productive effect on the Quality of Service for everyone."

WCVB has reported that "As post offices around the country brace for the busiest day of the year, services in the Hub may soon be slashed. There are seven Post Offices in the Boston area that could soon be stamped out. The reason: for many people it's been awhile since they've even been inside a post office."

As noted by Experian QAS, "Postcodes will be introduced across Ireland over the coming years, it has been announced. Minister for communications Eamonn Ryan is due to issue tenders for the design and implementation of the new system shortly. A report commissioned by the government revealed that postal codes will lead to financial savings and improve delivery times, particularly in secluded rural areas. The new system is also likely to be of benefit to the emergency services."

WTOP has reported that "At a time when the White House is projecting the largest deficit in the nation's history, Uncle Sam is trying to recover billions of dollars in unpaid taxes from its own employees. Federal workers owe more than $3 billion in income taxes they failed to pay in 2008. According to Internal Revenue Service documents, 276,300 federal employees and retirees owe $3,042,200,000. The agency with the most tax scofflaws is the U.S. Postal Service, with 28,913 employees who owe $297,933,756. But that is still a dramatic improvement from 2007 when more than 54,000 employees owed more than $407 million."

ABC News has reported that "The union representing the Territory's postal workers says it is very possible local mail services will be disrupted as part of industrial action at Australia Post. The Postal Workers' Union says Australia Post staff have been waiting three years to get a better wage deal. The union's South Australia-Northern Territory branch secretary, Graham Lorrain, has flown to Darwin to meet with postal staff tonight."

According to the Patriot-News, "There's at least one tradition that even the worst economic conditions in the last two decades can't break -- the signed, sealed, delivered holiday card. Today -- the second Monday before Christmas -- is the high-water mark for holiday mail, according to the U.S. Postal Service. While mail volume has been dropping for about six years because of increased use of online bill paying and e-mail, the Postal Service is anticipating about 17 billion pieces of mail between Thanksgiving and Christmas -- down 2 billion pieces from last year."

The Richmond Times-Dispatch has reported that "As the U.S. Postal Service heads into its peak mail period -- and the busiest day of the year today -- some area nonprofit groups say they're concerned about what they say are increasing disruptions in the delivery of their mail. They say payments, requests for donations and newsletters have gone missing or have been delivered weeks after items were dropped at local post offices. And they are frustrated that their questions about the delays have gone unanswered."

The Elmira Star-Gazette has reported that "The U.S. Postal Service has been unresponsive and less than truthful regarding its plans to close the Sullivan Street postal processing center in Elmira, according to U.S. Rep. Eric Massa. Massa, D-Corning, met with postal union leaders and workers Sunday evening at the Catholic War Veterans post in Elmira Heights to discuss the plan to consolidate Elmira's processing operation with Rochester, a move that will affect 35 employees."

December 13, 2009

ABC News has reported that "postal workers around Australia say they will deliver unstamped mail from today until Christmas Eve. About 32,000 workers will take part in the industrial action against Australia Post in the hope of getting a new wage deal. New South Wales union secretary Jim Metcher says workers have waited three years for a deal. "Postal workers have waited long enough for a new wage deal and they want one now," he said."

Direct Communications Group has updated its list of publicly traded firms in the courier, express or postal service industry. The list of firms includes firms that provide: Physical Delivery Services, Printing and Document Preparation, Mailroom, Sortation, and Mail Preparation Equipment, Software, Consulting/Outsourcing, E-Commerce. The list can be found on the new Direct Communications Group website.

The Daily News has reported that "Submarines, ships, planes, cross-country buses, trains and even the postal system are being used by drug traffickers to get their products to local and international markets."

The Charlotte Observer has reported that "The private companies are not the only ones feeling the crush. The U.S. Postal Service also expects Monday to be its busiest day, with about 830 million pieces of mail."

The Pittsburgh Post-Gazette has reported that "FedEx shipping network expects to haul 50 million packages this week."

The Waterbury Republican-American has reported that "For those who have received a bill a day late or found the birthday card they sent to a loved one didn't arrive in time, the president of the local American Postal Workers Union might be able to shed some light on the tardiness. Ray Arcovio, president of the Waterbury area postal workers' union, says managers at the post office have been hiding mail in closets and unused rooms at mail facilities in Waterbury and Wallingford because they've had trouble processing and delivering a high volume of mail."

VOV-News has noted that "The third Post & Logistics Conference of the Union Network International – Asia/Pacific Regional Organisation (UNI-Apro) opened in Hanoi on December 12, drawing the participation of representatives from Asia-Pacific countries and the world."

ISRIA has reported that "During a meeting with Mr Hadj Gley, Minister of Communication Technologies, President Zine El Abidine Ben Ali took cognizance of the various indicators relative to the growth of telecommunications and internet networks as well as that of electronic postal services and their generalisation throughout the country."

According to one writer for the Burlington Free Press, "I’ve been reusing all types of envelopes, small and big ones, padded and thin ones, white, manila and color ones. I’ve also reused the prepaid and business envelopes from marketing ads or from the bank, as I’ve done all my banking online for the past five years. I’ve even created my own envelopes gluing papers together. I’ve mailed stuff nationally and internationally, including a book I sold through Amazon.com. And I never had a single problem, so far. If many other people are doing this, is it complicating the logistics of the U.S. Postal Service? Has the post office come up with a new mailing etiquette that endorses reused envelope?"

The BBC has reported that "The government is planning to give anyone free access to postcode data. The move will be made as part of its commitment to make more use of technology and the web to transform official services. Currently organisations that want access to datasets that tie postcodes to physical locations cannot do so without incurring a charge."

The Courier, Express, and Postal Observer has noted that "New competition in the United States does not just come from these regional carriers. Purolator USA, a Canada Post subsidiary, is slowly expanding its domestic United States business as a complement to its cross-border business. By expanding its domestic United States business, it can serve more of the North America needs of its customers, making it easier for it to get a larger share of the business of customers with significant cross-border parcel and express traffic."

December 12, 2009

KOMO News has told its viewers: "The U.S. Postal Service is promoting flat rate shipping for the holidays. According to the commercials, you can send anything that fits in boxes, anywhere in the country, for a low flat rate. Maximum weight is 70 pounds domestic. Sounds like a great deal- but is it really?"

Deadtree Edition has reported that "Is the Flats Sequencing System going to revolutionize the Postal Service’s handling of catalogs and magazines or is it destined for failure? Good question. The evidence is mixed, partly because USPS has been forthcoming about some aspects of FSS but secretive about others. Mailers report little trouble with the few FSS machines that are operating so far. And some are impressed by postal officials' efforts, after some initial hiccups, to work with industry on creating an efficient, “lowest combined cost” approach to the handling of catalogs, magazine, and other flat mail. But postal officials were also caught off guard by the rapid decline in flat mail...."

From the Federal Register:

Postal Regulatory Commission
PROPOSED RULES
Periodic Reporting Rule ,
66082 [E9–29615] [TEXT]  [PDF]
Postal Service
PROPOSED RULES
Eligibility for Commercial Flats Failing Deflection ,
66079–66082 [E9–29612]

[TEXT]  [PDF]

The Mercury News has reported that "UPS, the mammoth delivery company, tackles it with hundreds of cargo jets, thousands of big rigs, tens of thousands of those familiar brown delivery vans — and Justin Hurst's bike. A UPS delivery bike. Really."

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

  • The Postal Service published its unaudited October results with the Postal Regulatory Commission. USPS lost over $221 million dollars in October 2009, which is the first month in its Fiscal Year 2010 and the height of fall mailing season.
  • The Postal Service published its unaudited September results with the Postal Regulatory Commission. USPS made $2.5 billion dollars in September 2009.
  • The Government Accountability Office released its report on the Information Technology - - U.S. Postal Service Needs to Strengthen Acquisition and Management Capabilities to Improve Its Intelligent Mail Full Service Program to Congressional requesters. It is recommending that the Postmaster General take several actions to improve the management of the program, including developing a comprehensive cost estimate and sound acquisition and development policies. In written comments on a draft of this report, USPS agreed with three of GAO’s recommendations, disagreed with three, and did not comment on one. GAO continues to believe that adoption of key acquisition practices is essential.
  • The U. S. Postal Service has posted its fourth quarter service performance reports for all market-dominant products, which covers the period from July 1, 2009, to September 30, 2009. The Quarter 4 scores are a mixed bag, with performance for some market-dominant products showing improvement while others experience significant service declines.
  • In an article published by the Postal Journal, long-time postal observer Gene Del Polito wrote: "Designing a new postal architecture is not child's play. As in designing any new building, every architectural element must be analyzed thoroughly to ensure it will withstand the structural stresses that otherwise might bring the new edifice down. The business of designing a new national postal architecture is better left to those who are charged with overseeing the nation's postal system. In the case of the United States, that happens to be Congress and whomever else Congress designates. Users of a postal system should no more be interested in fashioning a new postal architecture, than they are for doing the same for electrical, gas, and water services.
  • Here are some suggestions offered by one of PostCom's postal veterans regarding IMb readiness.
  • An article by Hellmail chief editor Steve Lawson on the growing interest in paper-free mail systems by European postal operators and how these platforms address security and filtering as well as how they differ from Hybrid mail systems, the functionality of these technologies, a few factors you may not have considered, and if and when we can expect the paper-free postal revolution to become a larger part of our everyday lives.
  • According to Butler Mailing Services President Todd Butler, "the problem with comparing direct mail costs (including disc based mail) to on-line marketing is that a common lexicon for equivalent consumer actions and costs associated with those actions has not been established. Until now."
  • PRC approves USPS shipping price change. USPS releases PostalOne processing times. USPS posts quarterly stat report. Fred Smith shares views on job growth. No more WANTED posters in PO. Senator Collins questions moves by USPS. FedEx ups outlook on global strength. Five mags and newspaper publishers introduce digital newsstand. PRC’s OIG releases semi-annual report. Ad spending to stabilize in 2010, online to lead the way. Burris at it again.
  • Updates on dockets at the Postal Regulatory Commission.
  • An update on DMM Advisory notices issued by the U.S. Postal Service.
  • Updates on postal matters published in the Federal Register.
  • A review of postal news from around the world.
  • PostCom welcomes its newest member.
  • Postal previews
Hey! You've not been getting the weekly PostCom Bulletin--the best postal newsletter anywhere...bar none?  Send us by email your name, company, company title, postal and email address. Get a chance to see what you've been missing.

The PostCom Bulletin is distributed via NetGram

December 11, 2009

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

The Universal Postal Union (UPU) and the Internet Corporation for Assigned Names and Numbers (ICANN) today signed the contract that grants the UPU managing authority over the top-level domain name, .post (dot.post). The UPU is the first United Nations agency to obtain a piece of real-estate space on the Internet for the global industry it represents. ICANN President Rod Beckstrom and UPU Director General Edouard Dayan signed the contract at the United Nations Office in Geneva, Switzerland. Dayan said the .post project is an important initiative for developing and providing secure and trusted postal services over the Internet.

DMM Advisory: Move Update. Just a reminder....The Move Update assessment charge of $0.07 per piece is effective January 4, 2010, and applies to a percentage of pieces in First-Class Mail and Standard Mail mailings failing Performance-Based Verifications at acceptance. A noncompliance charge of $0.07 per piece may apply to all pieces in a Standard Mail mailing that does not comply with the Move Update standard.

As Rag Content has noted, "The Postal Service has begun to lay out what it wants in the year ahead by speaking to stakeholders at various meetings including MTAC, hill visits, association meetings, and to the press. It has been clear in its request for two legislative actions to "right this sinking ship." First, it needs its retiree health benefits payments restructured to match its current economic reality, and not the revenue/volume highs of 2006 when the law was put into place. Second, it has asked to cut delivery and operations from six-days to five-days a week. It appears that Saturday has become the targeted day of the week to slash delivery. What is unclear is the Postal Service's plan to scale back its postal operations. The potential impact of changing operations is something the Postal Service seems to be doing without much thought to its customer base these days. As it hides behind the line - matching resources to revenue, it continues to downsize its operations from closing post offices to reducing the remittance mail processing on Sundays in some locations to its AMP consolidation effort. The post office closing is the only docket open before the Postal Regulatory Commission at the moment, yet every change the Postal Service is making operationally affecting its ability to provide uniform service throughout the country."

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

According to NY1, "a situation has been eating away at the residents of Brevoort East in Greenwich Village, as locals claim that rodents have been chewing on their packages at the local post office. NY1 contacted the United States Postal Service and asked what was being done to address the rodent problem at Cooper Station Post Office."

The St. Peterburg Times has reported that "Valpak deals in big numbers. The direct mail company's highly automated $220 million plant in St. Petersburg churns out 20 billion coupons a year wrapped in 520 million distinctive blue envelopes. They land in mail boxes of 45 million households in the United States and Canada. Valpak was shaken last year by news that parent Cox Enterprises put it on a list of properties for sale. Then came layoffs of 79 employees, about 6 percent of its work force, amid sluggish sales forecasts. Now, Cox says the future looks promising and plans for a sale are history. Valpak's top executives, president Jim Sampey and his boss, Greg Bicket of Cox Target Media, recently talked with the Times about how the business works and its good performance in a tough year for direct mailers."

DMA Offers Extensive Environmental Facts & Tools: Setting the Record Straight.

Capital FM has reported that "The Postal Corporation of Kenya (PCK) has said it will partner with the Information Ministry to roll out the digital villages through which the government intends to increase ICT penetration across the country. Postmaster General Retired Major General Mohammed Hussein Ali disclosed to Capital Business that some of the digital villages would be located in various post offices through which the public - particularly those in the rural areas – can easily access government documents and information."

On Hellmail today:

December 10, 2009

[PostCom logo

PostCom welcomes its newest member: Worldcolor Logistics 1130 Thorndale Avenue Bensenville, IL 60106-1144 represented by Debbie Cooper

Press Release: "One hundred and nine commercial mailers can’t be wrong. That’s the number of mostly high-volume mailers who helped the U.S. Postal Service deliver one billion pieces of mail using Full Service Intelligent Mail. The milestone mailing entered the distribution network on Dec. 4, and the actual number was confirmed earlier this week. Since the May implementation of Intelligent Mail Full Service, 109 commercial mailers have submitted more than 11,000 electronic postage statements. “Intelligent Mail Full Service provides commercial mailers with visibility into the status of their mail so that they can provide better service to their customers,” said Tom Day, senior vice president, Intelligent Mail and Address Quality. Day credited the success of the Intelligent Mail program to the relationships the Postal Service has with its customers. He cited decisions to simplify a number of business mail acceptance processes as examples of the Postal Service responding to the needs of its customers."

Washington Technology has reported that "AT&T Government Solutions has won a four-year, $120 million contract extension to provide additional network services to U.S. Postal Service facilities nationwide. Under terms of the extension of the Postal Advanced Telecommunications Network contract, AT&T will provide managed network services including IP address management, design and engineering, onsite installations, router service, firewall and interactive voice response."


Attend the 2010 National Postal Forum
STRAIGHT TO YOU FROM NASHVILLE Performance • Technology • Value • Results • And Much More! Connect, Learn and Deliver with the best the industry has to offer! April 11-14, 2010 • Nashville, Tennessee Learn more or register today at: www.npf.org/reg1

The Courier, Express, and Postal Observer has reported that "in his most recent statement, Here We Go Again, on the current debate on postal policy, APWU President Burrus makes a fairly bold statement. The future of the Postal Service is tied to the revenue generated from letter mail. (All quotes in this post are in italics.) His statement is both true and troubling. It leads to two simple questions. If the future of the Postal Service is tied to letter mail, are there initiatives that can grow letter mail enough to replace revenue lost to the transition to the digital documents in order to maintain a workforce of 600,000, current levels of service quality, and the current operating and retail network; pay the costs associated with an accurate calculation of the Postal Service's retiree obligations, debt incurred for current operating losses and workers compensation payments; and generate sufficient cash to invest in improving service and efficiency to meet the needs of mailers in 2020 and beyond? If not, what changes are necessary to ensure that mail remains a critical economic driver as we work our way out of the great recession as well as 2020 and beyond?"

Call for Papers – the Center for Research in Regulated Industries is now accepting abstracts for next year’s conferences. Advanced Workshop on Regulation and Competition's Eastern and Postal & Delivery Economics Conference:
18th Conference on Postal and Delivery Economics
, June 2-5, 2010 Haikko Manor, Porvoo, Finland Abstracts Due: December 15, 2009 http://crri.rutgers.edu/call/Postal_Call10.pdf
29th Annual Eastern Conference
, Skytop, Pennsylvania, U.S., May 19-21, 2010 Abstracts Due: January 6, 2010 http://crri.rutgers.edu/call/WSCP10.pdf

The President of the American Postal Workers Union has complained that "influential voices within the postal community have once again begun the drumbeat for postal “reform,” suggesting that the USPS business model is fatally flawed. We have heard this song many times before – throughout the 1990s and during the early part of this decade. Then, as now, those clamoring for legislative change drew upon selected facts to bolster their case. Cost efficiencies, new revenue opportunities, structural change and expedited rate-changing procedures were promised in the past, and they are being dangled before our eyes once again as justification for Postal Reform, Round 3. Despite the miserable failure of the Postal Accountability and Enhancement Act of 2006 (PAEA), and the revisions to the law governing the Postal Service in 2003, they are at it again!"

The News-Herald has reported that "The holiday season and Christmas cards seem to go hand in hand — at least, they used to. In recent years, holiday mail volume has been on the decline, said Victor Dubina, U.S. Postal Service corporate communications coordinator. "We're anticipating 16.6 billion pieces this year ... across the nation. Last year, we handled 19 billion, the year before, 20 billion," Dubina said. "We've seen electronic diversion for quite a few years, and this year with the economy like it is, it will affect it as well." Dubina said single-piece stamped mail, like greeting cards and bills, seem to be the product line most affected by electronic diversion such as online bill pay and online greeting cards. "We're actually now processing at levels I've not seen since 1964," he said. "Yes, the holiday seasons are still big times for us, but the past couple of years it's still gone down. We have seen a steady decline locally as well as nationally."

DutchNews.nl has reported that "TNT Post has called on the government not to soften employment regulations agreed when the postal market was liberalised, as requested by its competitors Sandd and DHL Global Mail."

AMEInfo has reported that "The Higher Colleges of Technology (HCT), the UAE's largest higher educational institution, has signed a memorandum of understanding with Emirates Post aimed at exploring opportunities for UAE nationals to develop skills and careers in the postal service sector. According to the agreement, HCT will qualify students through the work readiness program for employment in postal services while Emirates Post will be supervising and monitoring the student training progress throughout the different sectors of the organisation."

Radio Iowa has reported that "Wednesday’s blizzard blocked mail carriers from delivering letters and packages to thousands of Iowa households and businesses. Postal Service spokesman Richard Watkins says plows were unable to reach side streets in many cities and highway and interstate closures delayed mail delivery to the primary sorting centers in Sioux City, Des Moines and Cedar Rapids."

Today at Hellmail:

From the Federal Register:

Postal Regulatory Commission
RULES
New Postal Product ,
65442–65445 [E9–29395]

[TEXT]  [PDF]

The Guardian has reported that "Royal Mail Group has grown its profits by £7m in the first half of the financial year despite another fall in the amount of post being sent in the UK. The chief executive, Adam Crozier, claimed that the process of modernising Royal Mail was paying off, after it reported an operating profit of £184m for the six months to the end of September. That is 4% more than last year's £177m." See also The Independent and The Times.

Sky News has reported that "Redundancy payments and the cost of funding a huge pension deficit have sent Royal Mail £434m into the red for the first half of the year. The postal group paid more than £300m into its pension fund over the six months and warned it remained a "daunting challenge" to fund. Its pension deficit is being revalued and is expected to reach £10bn compared with £3.4bn at the last valuation three years ago. Royal Mail also blamed its £434m negative cashflow on investment costs, but pointed out that profits from operations rose 4% to £184m in the period. It said profits were underpinned by progress in its modernisation plan, which is now around two-thirds of the way through." See also Hellmail.

Mintel has reported that "the recession hasn’t pulled the plug on  marketing direct mail for Medicare. On the contrary, Mintel  Comperemedia, a service that provides direct marketing competitive  intelligence, predicts insurance companies will actually increase  Medicare direct mail during this year’s Annual Election Period  (November 15-December 31, 2009).   Observing a 13% rise in Medicare acquisition mailings for October 2009  versus October 2008, Mintel Comperemedia forecasts this year’s fourth  quarter mail will top Q4 2008 by 20%. In full, the firm expects  insurers to send approximately 350 million direct mail pieces to  non-customers from October to December 2009. Typically, insurance  companies send the most Medicare mailings of the year from October to  December, when they’re allowed to market Medicare Part D plan  information to consumers."

Reuters has reported that:

  • Fresh from jolting stock markets with a rosy earnings forecast, FedEx, along with its transport nemesis UPS, are seen stalking Europe for a lucrative target to take on Deutsche Post’s DHL. Specifically, they are being talked about – again – as potential bidders for the express unit of Dutch mail and logistics company TNT. TNT moved a step closer to being broken up as activist funds took a 5 percent stake. New York-based Jana Partners and Canadian asset manager Alberta Investment Management Corp (AimCo) jointly hold the stake. The duo’s move is seen adding to investor pressure to split TNT’s lucrative express division from its troubled mail unit.
  • A possible break-up of TNT moved a step closer on Tuesday as activist funds, back on the hunt for opportunities, took a 5 percent stake in the Dutch mail and logistics group.

December 9, 2009

The Wall Street Journal has reported that "Dutch postal and express group TNT NV unit Post Wednesday said it has taken note of the announcement by Sandd and DHL Global Mail that they will be requesting summary proceedings to challenge the "Temporary decree on postal contract of employment".

[EdNote: Deadtree Edition has risen from the dead.]

Bernama has reported that "The Coordinating Body for Pos Malaysia Postal Unions on Wednesday submitted a memorandum, calling for a review of postal tariffs, to Second Finance Minister Datuk Seri Ahmad Husni Mohamad Hanadzlah. Ahmad Husni received the memorandum on behalf of Prime Minister Datuk Seri Najib Tun Razak, who is also Finance Minister, and Chairman of Khazanah Nasional Bhd. Khazanah Nasional is the largest shareholder in Pos Malaysia Bhd."

The Wall Street Journal has reported that "Simon & Schuster is delaying by four months the electronic-book editions of about 35 leading titles coming out early next year, taking a dramatic stand against the cut-rate $9.99 pricing of e-book best sellers. A second publisher, Lagardere SCA's Hachette Book Group, said it has similar plans in the works."

The Financial Times has reported that "Like all incumbent postal operators, TNT was already suffering from declining mail volumes due to the rise of digital communications, writes Michael Steen in Amsterdam. But this year the Dutch group had to struggle with what it called "the perfect storm" of full competition in its home market and a collapse in volumes for express services due to the financial crisis. A perennial subject for takeover speculation - most recently in July 2008 when its bigger US rival FedEx held preliminary takeover talks - the group must now face the further challenge of activist shareholders who may favour splitting the mail business from the express operations. Peter Bakker, the group's chief executive, told analysts last Friday that a break-up would not unlock any value, suggesting that potential bidders for parts of the company should instead just call him."

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

TNT announced its new strategy ’Vision 2015’ last week. An increased growth in parcel and express services is the centrepiece of this five-year plan. In the mail business TNT will focus on the Benelux region.
Swiss Post will be transformed into a public limited company under federal supervision.
Financial products are expected to help Royal Mail’s network to operate economically in the future.
An attempt by Swiss Post’s CEO Michel Kunz created furor. In an interview with »Basler Zeitung« (05.12) he came up with the idea of an annual ’letter box fee’ of 65 Swiss Francs for every addressee. This idea wasn’t a request by Swiss Post, but an idea of several posts’ CEOs in Europe, Kunz said. He justified this plan with decreasing mail volumes and compared the charge to radio and TV fees.
India Post’s deficit further increased this year.
An Post will cut almost 14% of its jobs over the next three years. Due to a 10% volume loss the Irish post is forced to implement rigorous cost saving measures. 1,375 jobs will be axed.

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.)

Marketing Week has reported that "The government service has been reviewing its direct marketing and branding business since February and opted to retain DraftFCB to handle the £15m account earlier this week. As part of the four-year contract, DraftFCB will now have to “develop and exploit the Post Office’s consumer database to optimise customer value… as the Post Office attempts to migrate the business from product focus to becoming customer centric.”

BDNews24 has reported that "The government (of Bangladesh) will launch money transfer services through mobile phones at all post offices from June next year. Officials told the parliamentary standing committee on post and telecommunications ministry on Wednesday that the postal department was set to run the e-banking services on an experimental basis through post offices in Comilla from January 2010. Once launched, people will be able to send money on mobile phones from all post offices."

From the Federal Register:

Postal Regulatory Commission
NOTICES
New Postal Products ,
65170–65171 [E9–29307] [TEXT]  [PDF]
65169–65170 [E9–29308] [TEXT]  [PDF]
Postal Service
NOTICES
International Product Change:
  Canada PostUnited States Postal Service Contractual Bilateral Agreement for Inbound Competitive Services ,
  65172 [E9–29384] [TEXT]  [PDF]
Privacy Act; Data Comparison Program ,
65172–65173 [E9–29383] [TEXT]  [PDF]


Questions...questions....we get lots of questions. Check out our Question of the Month: "Should I get into IMb now?"

Maine Business has reported that "The U.S. Postal Service has cut hours at more than five dozen Maine branches in recent months, and U.S. Sen. Susan Collins, R-Maine, thinks that's a sure way to make the Postal Service's dire financial situation even worse. Collins, the ranking Republican on the Senate's Homeland Security and Governmental Affairs Committee, which oversees the quasi-public Postal Service, said the Postal Service should be doing more to attract customers, rather than making it more difficult for people to mail packages and letters because of reduced hours. Collins said she would consider stretching out that payment schedule to ease the burden, but she said the Postal Service must do more to control labor costs, rather than targeting branches for reductions in operating hours. "It frustrates me that the Postal Service's response to its financial crisis is to cut services – and that risks alienating customers that the Postal Service desperately needs," Collins said."

At the Postal Regulatory Commission: "Mailing Services (Market Dominant Products) Preliminary Revenue, Pieces, And Weight By Classes Of Mail And Special Services For Quarter 4 Fiscal Year 2009"

The New York Times has reported that "Five major magazine and newspaper publishers on Tuesday announced plans to build an industry-standard platform to present their work on the Web, phones and e-readers in a richer, more flexible and more lucrative form than is possible today. The consortium of Time Inc., Conde Nast, the Hearst Corporation, Meredith and the News Corporation does not lack for ambition, hoping to design software primarily for devices that do not yet exist – cellphones more advanced than anything now on the market and e-readers far more sophisticated than today’s mostly static, black-and-white devices. The unnamed venture, whose outlines were reported last month, was originally envisioned as being mostly about magazines, but John Squires, who will serve as interim general manager, said the ultimate product will work for newspapers, books and other media, as well."

According to DC Velocity, "The U.S. Postal Service, facing what it termed the most "urgent financial challenge" in its 217-year history, has launched what is expected to be a sweeping and intensive re-evaluation of its current business model. Noting that "bold changes" to its operations are needed, USPS said even those options "that have been dismissed in the past" must be put on the table for discussion."

Clash has reported that "Famed Chicago producer Steve Albini has gone to war with the US Postal Services after their plans threatened to scupper his recent charity drive.

The Financial Mirror has reported that "After a year of grueling negotiations and bargaining rates, Cyprus Post has started offering MoneyGram money transfers in all its 50 locations, entering the remittance business valued at EUR 280 mln a year."

The Financial Times has reported that:

  • Hedge fund activism made a high-profile return to Europe on Tuesday when it emerged that Jana Partners and co-investor Alberta Investment Management Corporation had taken a 5 per cent stake in the Dutch postal services giant TNT. The move is being seen as a prelude to the sale of the group.
  • Like all incumbent postal operators, TNT was already suffering from declining mail volumes due to the rise of digital communications. But this year the Dutch group had to struggle with what it called “the perfect storm” of full competition in its home market and an ongoing collapse in volumes for express services due to the global financial crisis. A perennial subject for takeover speculation – most recently in July 2008 when its bigger US rival FedEx held preliminary takeover talks – the group must now face the further challenge of activist shareholders who favour splitting the mail business from the express operations. See also City A.M.

The Wall Street Journal has reported that "Shares in Dutch Postal and Express Group TNT NV rose by more than 6% Tuesday, as a joint stake by two investment funds reignited speculation about a possible break up or sale of the group." See also Bloomberg.

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

December 8, 2009

The Courier, Express, and Postal Observer has some thoughts on a "Mail Model for Rural America."


In Postal Technology International:

The Wall Street Journal has reported that "FedEx Corp. signaled further strengthening in the global freight market as the package shipper boosted its earnings guidance by more than 10%. The company on Monday cited better-than-expected growth in its U.S. small-package business and from international express markets, notably in Asia and Latin America."

The Washington Post has reported that "The economy is likely to expand moderately in 2010, Federal Reserve Chairman Ben S. Bernanke said Monday, but his guardedly optimistic assessment for growth contained no hints that the central bank is looking to raise interest rates anytime soon. "Economic forecasts are subject to great uncertainty, but my guess is that we will continue to see modest economic growth next year," Bernanke told the Economic Club of Washington in a speech. That growth, he said, would be "sufficient to bring down the unemployment rate, but at a slower pace than we would like."

According to Merinews, "huge subsidy-bill of about Rs 5632 crore on postal services in the current fiscal can and should be substantially reduced for future by simple rationalisation of postal-tariffs without affecting much, users of postal services. Inland postal-tariffs should be generally in multiples of rupees five. Since even beggars refuse to accept coins below one rupee, it is senseless to price highly subsidised post cards below one rupee."

RTE Business has reported that "An Post has said that it intends to reduce its 10,000 strong workforce by 1,300 between 2010 and 2012. The job cuts form part of a drive to realign the company structure and size in line with a new business reality - where mail volumes are down 10% year-on-year." See also Inside Ireland and Irish Times.

Reuters has reported that "Two activist funds have built up stakes in Dutch mail company TNT in a bid to shake up its structure after a new strategy announced by the group last week failed to incorporate a broad overhaul, a Dutch newspaper said on Tuesday. Jana Partners and Canadian asset manager Alberta Investment Management Corp jointly hold just over 5 percent of Europe's second largest mail and express delivery company, after Deutsche Post, regulatory filings released on Tuesday showed. Dutch daily Financieele Dagblad, citing unnamed sources, said the funds were not satisfied with TNT's plans, announced last Thursday, to focus more on express transportation while trying to keep performance at TNT's European postal division from getting worse.It is likely that the funds would seek a breakup of TNT into separate postal and express companies, the newspaper said." See also the Financial Times and DutchNews.nl.

MediaPost has reported that "A new comScore report shows that during the week of Nov. 22, transactions offering free shipping accounted for 50% of all online sales -- 11% higher than the same week a year ago."

From the Federal Register:

Postal Regulatory Commission
NOTICES
New Postal Product ,
64771–64772 [E9–29224]

[TEXT]  [PDF]

The Age has reported that "Postal workers across the country will launch industrial action in the lead up to Christmas after negotiations with Australia Post failed to deliver a new enterprise agreement. The action is expected to include work stoppages, as well as bans on checking for properly-stamped cards or letters, effectively meaning postage-free mail. Australia Post employees are seeking a new agreement which protects penalty shifts, rosters, and take-home pay and want a commitment from their employer to improve workplace safety."

WETM has reported that "More than a dozen postal workers don't know where they'll be working at the end of this month. In November, 60 day notices were given to approximately 36 clerks and mail handlers at the Sullivan Street processing facility. A union spokesman expects around 10 maintenance workers will also be affected. The notice states workers will need to move outside of Elmira if they want to keep their jobs with the post office."

The Wall Street Journal has reported that "The former banker ousted as head of Japan's postal-services group is striking back at the new government, blasting plans to halt privatization of the agency, which doubles as the world's largest savings bank."

Posted on the Postal Regulatory Commission web site:

December 7, 2009

Welcome to PostCom Radio
A PostCom Postal Podcast

Join PostCom President Gene Del Polito, Grayhair Vice President of Postal Affairs Angelo Anagnostopoulos, and Grayhair' Director of Client Services Therese Powers in a discussion of  service type IDs in conjunction with the Intelligent Mail program.

Reuters has reported that "Deutsche Post DHL set up an American Depositary Receipt programme to attract U.S. investors, with ADRs starting trading on Monday. "We are seeing significant interest in our stock from U.S. investors with a considerable percentage of our shares already being held in the U.S. market," finance director Larry Rosen said on Monday." [EdNote: I can't even imagine the USPS being able to do anything like this.]

The Wall Street Journal has reported that "Japan scrapped its plan to privatize its massive postal-services agency Friday, taking a dramatic turn away from its strategy of seeking to snap a two-decade economic funk by freeing up markets."

Materials Handling Magazine has reported that "NetDespatch has supplied New Zealand Post with an innovative web-based system that automates and simplifies forms for international shipments. Called RedClick, the new service is revolutionising the production of complex documentation for New Zealand Post customers, saving them hours of paperwork each day. The easy to use web shipping facility automatically produces CN22 and CN23 Customs Declaration forms for international shipping, eliminating manual form filling. Using simple web forms, with built-in intelligence to ensure that information is entered correctly, the automated production of the Customs Declaration forms streamlines the whole process. The forms can be printed to either laser or thermal printers. For higher volumes a manual or automated bulk import process is used, with either local or remote printing."

According to The Times, "Amazon, the world’s biggest online retailer and scourge of bookshops everywhere, is planning a surprise invasion of the British high street."

According to the Courier, Express, and Postal Observer, "Amazon is not looking to open retail outlets where customers can buy goods that the store has in inventory. Instead, the stores will provide a delivery point for customers that order larger items that mail or truck delivery is inconvenient. If Amazon goes ahead with a retail strategy, it should be able to haul items for pick-up to its "stores" using contract carriers dedicated to their retail network. Amazon's business case would most likely show that both customers prefer to pick-up their larger items at a retail outlet and the overall delivery costs, including the cost of operating retail outlets, is less than the cost of home delivery. Amazon's reported new initiative would be a direct assault on Royal Mail, DHL, UPS, TNT, FedEx and road transport companies."

Yet, according to PC Pro, "Amazon has denied reports that it's about to open high street stores in the UK. The Sunday Times claimed that the online retailer was searching for bricks-and-mortar stores to complement its ever-expanding online presence. Properties owned by the defunct bookseller Borders were reportedly among the targets."

December 6, 2009

"This report presents the results of our audit of the Postal Service’s compliance with the Management Instruction (MI) on Expenses for Internal and External Events1 and follow up to our audit report on Imprudent Spending Using the SmartPay® Purchase Card2 (Project Number 09BO016FF000). While overall spending using the SmartPay2® Purchase card3 has declined in the past year, our audit disclosed non-compliance with the policy on meals and events and continued imprudent purchases during this time of economic uncertainty for the Postal Service. Based on our review of judgmentally selected transactions, we identified over $792,000 in purchases that were not made in accordance with Postal Service policy and over $54,000 in imprudent purchases."

According to Hellmail, "The main selling point of paper-free postal services appears to be cost, immediacy and environmental considerations. With the world still coming to terms with what has been a serious banking crisis, a bad recession, and even greater concerns about global warming, cost and CO2 emmissions may well be the biggest driving factor behind the development and implementation of digital mail but there are numerous other factors that come into play."

KAIT8 has reported that "If you live in southeast Missouri, you may be missing a bill, card, or even a check. A local fisherman found mail dumped, not delivered, in Cape Girardeau County. On Thanksgiving day, the fisherman and his son were walking along the banks of the Diversion Channel near Allenville when they found a pile of dumped trash. But when they looked closer, they realized it was stacks of undelivered mail, all neatly bundled together. The fisherman tells me you can't reach this remote location by car, especially when it's muddy. So, whoever dumped the mail apparently didn't make the delivery by accident."

The Daily Mail has reported that "Thousands of post office closures have robbed communities of a traditional form of personal contact. Now it seems there is another threat - Post & Go self-service kiosks. These have already been fitted in 100 bigger post offices over the past 12 months. It is believed there could be as many as 700 of them in the 370 main Crown post offices in the next few years. The units, which are estimated to cost up to £100,000 each, are hugely complex. For users confident enough to grapple with the touch-screen technology, the machines dispense with the need to interact with human staff."

Daily Times has reported that "The yearly earning of Pakistan Postal Service (PPS) has shown an unprecedented rise of around 25 percent in its yearly revenue earning for 2008-09, swelling total income to Rs 7.7 billion, Pakistan Post Director General Muhammad Ahmed Ahmed Mian said. “In spite of financial crunch and international recession, PPS has been able to record an increase in revenue from Rs 6.2 billion (2007-08) to Rs 7.7 billion during 2008-09,” he said."

December 5, 2009

The Financial Times has reported that "The Treasury will slash its provision for losses from its banking interventions in next week's pre-Budget report as part of a wider shake-up of the way it accounts for part-nationalised banks on its books. More problematic for the Treasury has been its realisation that when the ONS fully classifies RBS and Lloyds as public corporations, their gross operating profits would reduce the official figure for public sector net borrowing on a continuing basis, just as post office profits reduce government borrowing, artificially flattering the figures." [EdNote: Sort of the British equivalent to the on-budget off-budget American congressional game.]

PostCom Advisory:  (From the USPS) Attention PostalOne!® Users Access to PostalOne! is temporarily not available. The specific cause has not yet been determined. We will provide a status update as soon as one becomes available. We apologize for any inconvenience. Thank You PostalOne! ® Customer Care Center. [EdNote: Ah, yes. PostalOne! Out again.]

National Public Radio has noted that "The next time you walk into a post office, take a look around. One of the things you probably won't see are the faces of the FBI's Most Wanted Fugitives. Over the past decade, America's most notorious mug shots have been fading away from post office walls. "It's really a move of economy," Nancy Pope, a historian at the Smithsonian Institution's National Postal Museum, tells host Scott Simon. "The Postal Service is in need of money, and they're looking at post offices a little bit differently than they used to," she says. "They're looking at them less as the community center and more as a place for merchandise and marketing." Some post offices already sell greeting cards in addition to stamps, but more merchandise is planned. "Anything they can pretty much get OK'd by Congress and the Postal Regulatory Commission," Pope says, "because they really do need the extra money." And that means they need as much display space as possible, so something has to go. So long, Most Wanted posters." [EdNote: Whew! My picture finally will come down.  ]

 
Fred Smith Shares Views on Jobs Growth at 'Jobs Summit.'

KTVB has reported that "A retired U.S. postal inspector has admitted in federal court that he sent nonmailable items through the mail and used government mailing labels to send dozens of parcels to avoid payment of postage. Gregory P. Staisiunas, 50, enter his guilty plea in a Boise courtroom this morning before U.S. Magistrate Judge Mikel H. Williams to two counts of mailing injurious articles and five counts of misuse of penalty mail labels. The first two offenses are misdemeanors and the last five are petty infractions under federal law."

December 4, 2009

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

  • This week, the U.S. Postal Service published its Assessment of U.S. Postal Service Future Business Model. The Postal Service believes that a fundamental restructuring of the its business and regulatory framework is essential. This paper outlines some of the potential business model options, including considerations and implications.
  • Alan Robinson, President of Direct Communications Group wrote in the paper he submitted to the Governors of the Postal Service that "the public face of the Postal Service is its service to individual citizens through its 6-day delivery service and local retail post offices. However, the survival of the Postal Service, and for that matter the ability of individuals, governments, non-profits, and businesses to send hard-copy communications and parcels rests on the Postal Service's ability to serve the business customers that generate over 88% of all revenue, a proportion which has grown as increasingly individuals have chosen electronic alternatives offering more convenient and cost-effective solutions. With non-household derived revenue likely to determine the long-term viability of the Postal Service, policy makers need to focus on ensuring that the future business model of the Postal Service can provide non-household mailers with a positive return on their mail spending in order that there is sufficient volume in the system to make the continuing use of mail by the general public affordable, reliable, and convenient.
  • In his paper, Crawford discussed the many challenges facing the USPS, i.e., changes due the impact of electronic communication and diversion from the mail, internally and externally imposed constraints, and the challenges presented by the changing American economy. He stressed what he believed were the imperatives the USPS had to face, i.e., the need to fundamentally restructure, cut costs, and generate revenue. Among the options the USPS could explore to reduce costs, Crawford offered the following: (1) remove the inflation-based price cap on market dominant postal products, (2) more closely align costs and prices more effectively, and (3) offer free post office boxes as an alternative to street delivery.
  • Elaine Karmack of the Harvard Kennedy School of Government noted that the challenges the U.S. Postal Service (USPS) is facing today are not the result of ordinary business fluctuations. The Postal Service's business has undergone some significant fundamental changes that require it to consider making changes to its oversized human and physical infrastructure. "The simplest option for the post office," she said, "is to cut its infrastructure."
  • Jacksonville University colleagues Harvey Slentz (a business school dean) and Joseph McCann (a practicing lawyer and former postal executive) provided an analysis of the USPS' current business model, an analysis of alternative business and regulatory structures, and recommendations focusing on the inevitability of change and the need for action, a business case on business model strategies, and ways to test various business models and alternative regulatory structures.
  • Reflecting a continuation of severe economic downturn and enormous financial challenges, the U.S. Postal Service released its 2010 Integrated Financial Plan (IFP).
  • Reflecting a continuation of severe economic downturn and enormous financial challenges, the U.S. Postal Service released its 2010 Integrated Financial Plan (IFP).
  • The U.S. Postal Service Office of Inspector General and USPS Inspection Service released its Semiannual Report on the Audit, Investigative, and Security Activities of the U.S. Postal Service this week. The report provides statistics and activities for the 6-month period of April 1 through September 30, 2009.
  • The U.S. Postal Service Office of Inspector General and USPS Inspection Service released its Semiannual Report on the Audit, Investigative, and Security Activities of the U.S. Postal Service this week. The report provides statistics and activities for the 6-month period of April 1 through September 30, 2009.
  • The Postal Service has expanded its options for attachments to Letters and Flats effective November 29. The Postal Service revised its Mailing Standards / Domestic Mail Manual (DMM) to allow certain attachments to a broader variety of Standard Mail letters and flats. There has also been some mailer feedback based on the new specifications outlined by the Postal Service.
  • The PRC approved the application of the 7-cent Move Update Assessment Charge to Presort First-Class Mail and Standard Mail. However, the PRC rejected the proposal to apply singlepiece FCM rates to Move Update noncompliant Standard Mail mailings.
  • The USPS this week published on its web site [http://pe.usps.com/FederalRegisterNotices.asp] an advanced copy of its proposed rule outlining the applicable prices for commercial flats mailings that fail to meet the revised deflection (droop) requirements the USPS had planned to implement on January 4, 2010, but now says it will defer until June 2010.
  • The U. S. Postal Service has published its 68-page 2009 Comprehensive Statement on Postal Operations. PostCom’s review of the publication provides the highlights.
  • According to the Courier, Express, and Postal Observer, "in order to understand the future of mail, one needs to first understand the future of the document. The word "document" immediately congers up an image of a written, printed format. That image is too narrow in today's multi-modal communications world that includes information that can be provided printed on paper but also in numerous forms on a computer display or in text-messages, or other format on a wireless smart phone."
  • DM News features former PostCom director Lee Epstein. USPS requests to defer parts of ACR. USPS revamps green website. FedEx adds new freight forwarding facilities. USPS future gets input from First Coast. DMM Revision. UPS' announced 2010 rate hikes may not tell the tale. PRC Commissioner Blair supports Iraqi Post. USPS mail tracking system doesn't deliver.
  • Updates on dockets at the Postal Regulatory Commission.
  • Updates on postal matters published in the Federal Register.
  • An update on DMM Advisory notices issued by the U.S. Postal Service.
  • A review of postal news from around the world.
  • From the Mailbag
  • Postal Previews
Hey! You've not been getting the weekly PostCom Bulletin--the best postal newsletter anywhere...bar none?  Send us by email your name, company, company title, postal and email address. Get a chance to see what you've been missing.

The PostCom Bulletin is distributed via NetGram

PostCom Advisory:  Here is some advice from those who are in a position to know within PostCom. If the mailer ID you have been given by the Postal Service begins with any number from zero through eight, you have a six-digit ID code. If your code begins with nine, then you have a nine-digit ID code. If someone has told you that you have a qualifying nine-digit ID code when your code doesn't begin with nine, you're going to have a problem when you try to use that code for PostalOne! and Full-Service IMb. And, yes, there are some people who have found out the hard way that a nine-digit code that begins, let's say, with zero (or one through eight), is not an acceptable nine-digit code.

DMM Advisory:

Intelligent Mail Service Update. The PostalOne!® system processes 99.49% Full-Service mailings in less than two hours: With nearly 5,000 Full-Service electronic files submitted between November 15 and November 20, 90% were processed by PostalOne! in less than 10 minutes, and 99.49% were processed in less than two hours. The remaining 0.51% that took longer than 2 hours to process was large volume mailings that are complex in nature and submitted by a limited number of mailers. The Postal Service™ continues to work with this group of mailers to improve performance issues.

Hand-Held Scanning Devices used in Full-Service Verifications: The use of hand-held scanning devices (FS-IMD) has been introduced to assist in Full-Service verifications. Based on feedback from the industry via the Mailers Technical Advisory Committee (MTAC), the Postal Service has simplified verifications to limit disqualifications of Full-Service mailings to:

  • No electronic documentation
  • No Intelligent Mail® barcode on containers OR- Intelligent Mail container placards are placed inside (under) shrink wrap
  • No Intelligent Mail barcode on handling units
  • No Intelligent Mail barcode on mailpieces

Other error types will be documented and supplied to the mailer to help improve mailing quality and assessments for these will be deferred until March 2010. A description of the verification and acceptance procedures can be found in Changes to Acceptance Processes in Support of Full-Service Mailing on RIBBS™ under Intelligent Mail Latest News .

Millions of Mailpieces Processed with Intelligent Mail Full-Service: The Postal Service has processed over 900 million mailpieces with Intelligent Mail Full-Service. Since implementation in May 2009, Intelligent Mail Full-Service customers have submitted 10,000 electronic postage statements.

The Courier, Express, and Postal Observer has posted that "Sometime in the next few months the Postal Service will receive approval from the Postal Regulatory Commission (PRC) to close less no more than 241 post offices, stations or branches. This is a far cry from the more than 3200 sites in its initial proposal that it presented to the PRC. Those communities that found their Post Office on the original list but are no longer under consideration for closing are likely relieved that their Post Office will remain open. These communities will be less pleased when the hours that the Post Office is open shrink as the Postal Service looks at ways to deal with declining demand for retail services."

According to the Wall Street Journal, "Publisher Hearst Corp. plans to launch next year a service called Skiff to sell digital versions of newspapers and magazines on electronic readers and other devices, in a system it believes will be more visually appealing to readers and more lucrative for media companies. Skiff would give publishers an alternative to Amazon.com Inc.'s Kindle store, which currently dominates the burgeoning field of digital reading. Through Skiff, Hearst said consumers will be able to buy digital publications that have better graphics and look more like their print counterparts, including the inclusion of advertising, than versions offered elsewhere. The service will include a digital storefront as well as a back-end system that publishers can use to render publications for a range of electronic devices, including Apple Inc.'s iPhone and small laptops called netbooks. The Skiff venture seems to have similar aims as a consortium of magazine publishers, including Hearst, which are working on a common technology standard and digital storefront to sell their titles on electronic readers and other devices. That initiative may be announced as early as next week, according to people familiar with the matter. The consortium also includes Time Warner Inc.'s Time Inc., Condé Nast Publications Inc. and Meredith Corp., according to these and other people familiar with the matter."

The Financial Times has reported that "Government plans for financial products and services in post offices were attacked yesterday by political opponents and trade unions as a missed opportunity. Lord Mandelson, business secretary, announced a consultation on services that could be offered including a current account, an account for children, a business account and a weekly budgeting account aimed at low-income households. He said it would help to secure the future of the network, which has suffered closures in recent years. But Ken Clarke, shadow business secretary, said the ideas were uncosted and would not be introduced before the general election."

From PR-Inside:

  • RFID has unveiled its new series of PDA RFID Reader Writer in LF or HF version. These user-friendly PDA RFID terminals are ideal for industrial and outdoor applications with its WiFi, Bluetooth and GPRS wireless transfer functions. These lightweight Handheld PDA RFID Readers/Writers DL710/DL720 are suited for information management, information collection or data transfer. They are designed optional with combining LCD touch screen or user-friendly keyboard, and integrated with WiFi, Bluetooth and GPRS functions.
  • ResearchInChina, the vertical portal for Chinese business intelligence, announces the release of a new report -China Express Delivery Industry Report, 2009. For details of this report please visit http://www.researchinchina.com/Htmls/Report/2009/5792.html.

According to its first worldwide survey, the Universal Postal Union – the United Nations specialized agency for postal services – estimates that Posts in its 191 member countries generated at least 26 million tonnes of CO2 in 2008 through the operation of postal vehicles and buildings. These Posts, employing more than 5 million people, operate a global network of more than 600,000 post offices and almost one million postal vehicles. They represent the planet's largest physical distribution network. The United Nations Environment Programme estimates total annual worldwide greenhouse gas emissions at 38 billion tonnes, meaning that postal operations produce 0.07% of these emissions. Posts in industrialized countries emitted around 11 million tonnes of CO2, or 41% of the total, while those in the developing and least developed countries released 15 million tonnes, or 59% of the total.

ConnectMid-Michigan has reported that "Postal workers held an informational picket Thursday as of jobs may be on the chopping block at Saginaw's main post office. Dozens of workers picketed outside the post office building on Washington Avenue in effort to keep their jobs from moving to Lansing. Concerns followed reports that mail processing for the Saginaw area would be moved to Lansing, taking dozens of jobs."

Transport Intelligence has reported that "TNT Group, the smallest of the 'Big Four' express parcel operators has successfully recovered its balance after selling its logistics subsidiary three years ago, yet it cannot afford to stumble again if it is to avoid being snapped-up by one of its bigger competitors. Yesterday TNT's CEO, Peter Bakker, and his senior managers presented their 'Vision 2015' outlining a clear if slightly surprising strategic direction for the business. Most surprising was the company's comments on the future of its Mail business. In the past few years the Dutch national post provider has sought to expand its mail businesses across Europe with growth in Germany and the UK. However there appears to be a change of heart triggered in part by the difficulties of 'mail liberalisation' in Europe. TNT now perceives that its Mail business in both the Netherlands and in the rest of Europe operates in an environment of "sharp further volume decline" as well as suffering from a high cost base. This has led TNT to look for what it calls, "partnership options including possible future European Mail incumbent consolidation", whilst its non-Dutch European Mail Network business will be managed with view to a possible sale. It appears that TNT is looking to float off its mail business outside the Netherlands because of its poor growth prospects. Such a move would make TNT Express the group's dominant business." [EdNote: Looks as if no one really believes in mail's economic vibrancy. Seems everyone gets this except some postal unions.]

The Wall Street Journal has reported that:

Japan passed a law Friday to halt the privatization of the country's postal service, holder of $3.446 trillion in Japanese investments and household wealth, in a move symbolic of the new government's efforts to overturn nearly a decade of deregulation in the world's second-largest economy. The law blocks the planned sale of shares in Japan Post's banking and insurance arms and paves the way for a drastic overhaul of the group during the next parliamentary session starting in January."
Dutch postal and express group TNT NV won't carry out any share buybacks in 2010, Chief Financial Officer Henk van Dalen said during an analyst meeting Thursday. Van Dalen said the current economic situation doesn't allow the company to buy back shares and it needs to invest money in carrying out its Vision 2015 strategy. He reaffirmed the company's dividend policy, which aims to pay out 40% of normalized net income.

From the Federal Register:

Postal Service
NOTICES
Privacy Act; Computer Matching Program ,
63800–63804 [E9–28901]

[TEXT]  [PDF]

On Postal Explorer:

DATE: Pending publication in the Federal Register.
Eligibility for Commercial Flats Failing Deflection
AGENCY: Postal Service™.
ACTION: Proposed rule.
SUMMARY:
The Postal Service is filing this proposed rule to describe the applicable prices for commercial flat-size mail failing to meet new deflection standards, to be effective on June 7, 2010.

Unpaid and Shortpaid Information-Based Indicia Postage Meters and PC Postage Products
AGENCY: Postal Service™.
ACTION: Proposed rule.
SUMMARY: The Postal Service is revising the Mailing Standards of the United States Postal Service, Domestic Mail Manual (DMM®), to implement revenue assurance procedures for information-based indicia (IBI) postage generated from postage evidencing systems. An automated process will be implemented to detect mailpieces with unpaid or shortpaid IBI postage. This automated process will supplement and enhance current procedures.

The Wall Street Journal has reported that "Dutch postal and express group TNT NV has said it wants to accelerate growth in its European and emerging markets parcels businesses, but signaled that it will sell or seek partnerships for its mail operations outside the Netherlands. Revealing its strategy for the next five years, the company said the slow pace of liberalization in Europe's mail markets had forced it to consider its options for its mail unit and its expansion into markets outside the Netherlands hadn't provided the growth it had hoped for. Instead, it will now focus on its Dutch mail unit, parcels, and freight. It will try to get more value out of its express parcels business by offering more customers guaranteed time and delivery slots."

Postal Sanity wants to know: "International e-commerce: How big will it grow?"

Federal News Radio has reported that "The U.S. Postal Service is trying to make mail 'smarter' -- but more needs to be done. That's according to the Government Accountability Office, which released a report about USPS's Intelligent Mail Full Service program. It started back in 2003 with the goal of standardizing barcodes to track mail and help USPS do its job better. The GAO has found, however, that parts of the program is behind schedule."
Download the MP3

The Associated Press has reported that "FedEx Corp. will raise shipping rates for its Ground and Home Delivery units by an average of 4.9 percent in 2010 — 1 percentage point less than this year's rate hike. FedEx announced in September it will increase shipping rates for Express packages shipped within or from the U.S. by an average of 5.9 percent in 2010, also 1 percentage point lower than FedEx's rate increase this year. That rate is partially offset by a lower fuel surcharge. The company, based in Memphis, Tenn., said Thursday that SmartPost rates also will change, but didn't specify how. SmartPost is FedEx's partnership with the U.S. Postal Service. All of the rate increases will go into effect on Jan. 4." See also the Memphis Business Journal.

The Daily Times has reported that:

WEAU has reported that "The U.S. Postal Service has agreed to pay the federal government thousands of dollars in fines for violations at a facility in Eau Claire."

December 3, 2009

From PR-Inside: "Newgistics Smart Label® Intelligent Returns Management Handles the Onslaught of Holiday Returns Newgistics, the leading provider of Intelligent Returns Management (IRM) through its SmartLabel® technologies, has partnered with leading direct merchants to offer cost effective Postal-based returns management solutions. With over 200 million SmartLabels® active in the marketplace, Newgistics is the leader in returns management for the direct-to-consumer retail industry. This holiday season Newgistics' Intelligent Returns Management (IRM) will save retailers and their customers time, confusion, and money, leading to an improved shopping experience."

CNET News has reported that "Apple's tablet is all the rage these days. Companies are lining up to pledge support for the tablet even though Apple hasn't acknowledged its existence. The latest publishing company to throw its hat into the tablet ring is Time Inc. With a concept version in hand, the publisher showed AllThingsD a version of the tablet-size edition of Sports Illustrated. Time says with some confidence that its digital magazine format will run on "whatever tablet Apple or [anyone] else has up their sleeves." As you might expect, Time is planning to make all of its titles available on the new format. Time isn't the only company getting ready for the Apple tablet. Conde Nast said in late November that it is preparing a version of Wired for the elusive tablet computer."

Europolitics has reported that "The Ecofin Council adopted, on 2 December, conclusions noting that the third Postal Directive will enter into force on 1 January 2011 (1 January 2013 in some member states). The Council stresses the importance of taking all necessary measures to solve the political problems originating from the VAT treatment of postal services before the third Postal Directive will enter into force and the liberalisation of the postal market is a fact. Taking account of existing tax arrangements in member states, the Council invites the upcoming Spanish and Belgian Presidencies to explore and examine all options in order to make steps forward in this respect and to report the progress made at the Ecofin Council, in December 2010, at latest."

The Guardian has reported that "Royal Mail looks ready to cash in its equity holding in Camelot, the operator of the National Lottery, in a move that could raise up to £85m for the cash-strapped postal business."

The Wall Street Journal has reported that "E-commerce sales grew 5% on Cyber Monday—the first Monday after Thanksgiving—compared with sales on Cyber Monday last year, and the day's sales matched the single-day record for online shopping."

SwissInfo has reported that "The head of the Bern-based Universal Postal Union has urged postal services around the world to reduce their CO2 emissions. Edouard Dayan’s call for action comes after the UPU – the United Nations specialised agency for postal services – reported that it estimates at least 26 million tonnes of C02 emissions were produced by its 191 members’ postal vehicles and buildings in 2008. A statement from the UPU’s headquarters said that on the eve of the World Climate Conference in Copenhagen, the sector was committed to helping curb climate change and finding more eco-friendly ways to process and deliver mail items."

From the Federal Register:

Postal Regulatory Commission
NOTICES
Meetings; Sunshine Act ,
63416 [E9–29000]

[TEXT]  [PDF]

 
Postal Service
NOTICES
Change in Rates and Classes of General Applicability for Competitive Products ,
63416–63494 [E9–28828]

[TEXT]  [PDF]

The Financial Times has reported that "Government plans for financial products and services in post offices were attacked yesterday by political opponents and trade unions as a missed opportunity."

As the Minneapolis-St. Paul Pioneer Press put it: "Imagine a $64 million construction project four times the size of Target Field. Enough dirt is removed to fill the Foshay Tower twice over. Its electrical wiring could roll out 69 miles. Loading docks number in the triple digits. Is it an airport? A steel plant? A football stadium? No, no and no. The "quiet giant" under construction on Eagan's Lexington Avenue South will be a steroidal mail distribution center — a Hulked-out post office, if you will — and easily the largest of its kind in the state."

The Times has reported that "When Joan Najbar sent a chatty letter to her soldier son, who was deployed in Iraq, she looked forward to getting his reply with all his news. Instead, Ms Najbar from Minnesota, was devastated to receive her own letter returned - with "deceased" stamped on the envelope. Having had no contact with her son for some weeks, the horrified mother contacted the American Red Cross to try to get details of how and where her son had died. They, however, informed her that he was still very much alive. Now Ms Najbar is suing the US Postal Service for the distress she suffered after receiving the stamped letter."

Wales Online has reported that "plans to introduce business banking facilities to the Post Office network could bolster community life in rural Wales, it was claimed last night. The public consultation launched on Tuesday could see Post Offices offer an improved set of financial products, including current and children’s savings accounts, corporate banking and a weekly budgeting account for low-income households. Growing its financial services arm could secure the future of the postal network, which has suffered a wave of closures in recent years, lobbyists said yesterday."

The New Lenox Patriot has reported that "As the debut community for the paperless postal system Zumbox, the Village of New Lenox has been sending digital mail to its residents since March. Now, cities across the country are jumping on board. Zumbox officials announced the national rollout of the digital mail technology in September, with San Francisco, Calif., and Newark, N.J. as the first major cities to begin sending paperless mail via Zumbox. Just a few weeks later, on Oct. 1, Zumbox officially launched in New York City after Mayor Michael Bloomberg announced a pilot project to send municipal paperless mail to all five of the city's boroughs. Minneapolis, Minn., is the latest city to begin utilizing Zumbox's paperless mail service by sending public notices and letters from the mayor to its residents."

The Washington Post has reported that "After a federal judge in Maryland sent a former Howard County postal clerk to prison for stealing $682,000 worth of stamps, federal authorities posted this warning: "Anyone who buys stamps at a discount should be on notice that they are purchasing stolen property," U.S. Attorney Rod J. Rosenstein said. Authorities said Foster sold the bricks of stamps to others who made money selling them at a discount. One alleged co-conspirator sold more than $259,000 worth of the stamps on eBay for about $229,000."

Hellmail has reported that:

Dutch postal operator TNT said that it was "surprised and disappointed at the trade unions’ stance on the company’s collective labour agreement and social plan", as announced by the unions yesterday. The company said it saw no common ground whatsoever between the unions’ stance and the seriousness of the issues faced by TNT Post. It said that since 2007, the necessary cost savings had been extensively discussed with the unions and that a recent study by research agency Ecorys, commissioned by the unions, reconfirmed that far-reaching cost measures are necessary to maintain the viability of the company. TNT Post warned that it facied serious challenges in the liberalised postal market, with price representing a decisive factor in a market that is free to make its own choices. It said it was unable to lower its rates below cost price, which is largely determined by labour costs and that from the 1st of January 2010, almost all Dutch radio and television guides, totalling over 100 million mail items, will be distributed by competitors of TNT Post. It also pointed to a strong decline in mail volume as customers continued to switch to digital solutions.
Billy Hayes, CWU general secretary, said today that he welcomed the announcement of the government consultation on financial products and services for the Post Office, but warned of its limitation and urged the government not to let it be a "wasted opportunity".

Editor's Note: We have been told by the editor of Deadtree Edition that a Google induced glitz (they own Blogger) has caused his (or her) blog to crash. It will take a few days to restore.

Direct has noted that "A group of industry trade organizations has launched postaljournal.com, a Web site they hope will serve as a discussion forum to exchange ideas about the future of the U.S. Postal Service. The founding organizations...deny the site will be used for overt lobbying. “It’s sort of like an online journal where papers are contributed and people can feel free to offer additions or alternative points of view by writing to the editor. We'll have it serve as a basis where thoughts can be freely expressed,” said Gene Del Polito, president of Postcom. “It’s not our intention to use this as a vehicle to convince anybody about the passage of any particular or future legislation," he continued. "But our feeling is you've got to create some place where those who are responsible for creating policy can go and learn about pros and cons, learn about the ideas that people have been willing to contribute and then judge for yourself whether the ideas need to be focused on more closely.” 

According to the President of the American Postal Workers Union, USPS is living in "Fantasy Land." His beef? The "postage discounts enjoyed by major mailers."


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

As B2B has noted, "A consortium of direct marketing organizations has introduced a new online forum to encourage an exchange of ideas on how the U.S. Postal Service can continue to be relevant to commercial mailers. The site, www.postaljournal.com, contains essays and slideshows by various authors, downloadable in PDF form, on topics such as “The future of the postal sector: the elephant in the room” and “New business models for tough problems.” The site is supported by the Association for Postal Commerce, Direct Communications Group, Direct Marketing Association, Envelope Manufacturers Association Foundation, and the Mailing and Fulfillment Service Association. The groups said the new site was launched “to create an exchange of ideas about the industry, without consideration to professional affiliations.” [EdNote: Robert J. Brinkmann LLC and Transformation Strategy Inc. also have joined as supporters of the site.]

December 2, 2009

The following papers have been added to the Postal Journal:

The Saginaw News has reported that "Saginaw U.S. Postal workers are planning an informational picket in support of their jobs in front of the Saginaw Post Office at 1233 S. Washington from 11 a.m. to 3 p.m., says Mary A. Greene, a 16-year postal employee and American Postal Workers Union Saginaw Area Local 486-487 representative."

From PR Newswire: "Avery Dennison Office Products and Stamps.com unveiled the Desktop Postal Center as part of Avery's Mailing Center service, a comprehensive set of tools and services for mailing and shipping needs. Together the Avery Dennison and Stamps.com alliance provides the most convenient and cost-effective postage solution for small businesses and home office professionals, helping them accomplish all their day-to-day shipping and mailing projects. By transforming a computer/printer into a shipping machine, the Desktop Postal Center can save time and resources by accurately calculating exact postage with a postal scale, automatically verifying addresses through Stamps.com, tracking packages via e-mail notifications and eliminating the need to ever go to the post office again."

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

Germany’s letter market saw a decline in 2008. The Federal Network Agency’s just published market report shows that the mail volume decreased last year by 250m pieces (-1.4%). Revenue fell by 3.5% to 9.71bn euros. The regulator also reported that alternative providers lost ground.
Alternative Post the only private mail service on a national scope in France besides Adrexo seems to be bankrupt.
Last week the initiative ’For a strong Post’ was introduced in Switzerland. The initiative which was founded by labour union Kommunikation, the Swiss Federation of Trade Unions and the Social Democratic Party focuses on amending the constitution to provide a nationwide network of post offices.
Österreichische Post intends to become active in the tourism industry.
At the beginning of parliamentary discussions on the new postal-law in Switzerland the KEP&Mail association demanded a statutory defined access to the postal infrastructure.
The trend for early retirement of civil servants at Deutsche Post, Postbank and Telekom costs German tax payers more than 200m euros every year.
Swiss Post backpedals from its controversial price hike for the press distribution.
Japan Post obviously intends the takeover of Nippon Express’s domestic parcel service.
DHL, Agility and Schenker as well as 17 other CEP- and logistics providers find themselves in the firing line of the Italian competition office.
DHL announced a drastic reduction in jobs in Belgium.
Mail Alliance, the new joint delivery network by TNT and the mail subsidiaries of German publishing groups Holtzbrinck and Madsack will start operations in January 2010.
TNT Post UK offers a new service that enables its clients to add a scent to their direct mail. The aroma is touch sensitive, a method already used by the cosmetic and perfume industry in magazines for quite some time. Customers may choose between a range of fragrances or will have the opportunity to create their own signature aroma.
The trend to buy online remains unbroken in Germany.
CitySprint (revenue 2008: 51.5m euros), by his own account Great Britain’s largest private SameDay-network, bought british CEP-service On The Dot Courier for an undisclosed sum.
Deutsche Post was able to secure one of the biggest contracts in Germany’s mail market for five further years. The Bonn based company announced it will deliver ADAC’s (German automobile association) member’s journal for the next five years.
Mario Frusch, CEO of TNT Germany, demanded a level playing field on the german postal market from the Government.
The front of protest against French La Poste’s conversion into a corporation seems to crumble.
Zeitfinder is a new software, Deutsche Post offers private users for free. This widget includes a calendar and a diary. Additionally it can be used in conjunction with programmes like Skype and Facebook. Zeitfinder is downloadable at www.zeitfinder.de or can be used as an online application.
Deutsche Post currently tries to generate so-called opt-in-addresses of consumers. Via direct mail potential customers are asked to send a reply card or to register on the website www.Gewuenscht-geliefert.de. A spokesperson referred to the amendment of the German Federal Data Privacy Act, which makes the commercial use of home addresses subject to a consent caveat.

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.)

Editor's Note: What to do about the Postal Service? Simple. Give it to AIG. That will ensure it will forever get all the federal money it will ever need to keep operating.

UPS Canada has formally opened a (US)$70 million expansion of its Toronto distribution centre, once again demonstrating its commitment to boosting Canadian trade by simplifying the import and export of goods.

The Kalamazoo Gazette has reported that "Tuesday’s public meeting on the proposed consolidation of some mail operations from Kalamazoo to Grand Rapids was missing a key element: information."

From PR Web: "Packed with intelligence to automatically format the USPS Intelligent Mail barcode as well as over 40 other one and two dimensional barcodes, the BarCodeJet and BarCodes Complete solutions by TypeHaus turn nearly any HP LaserJet or other laser printer into a professional quality barcode printer."

According to SNP News, the Scottish National Party "has welcomed the UK Government’s consultation on developing Post Bank services but warned that the focus of the consultation must be on the needs of communities – not the needs of banks."

The Press Association has reported that "The Government is promoting new financial products and services that could be offered via the Post Office, ranging from a business account to children's savings. Business Secretary Lord Mandelson said growing financial services would help secure the future of the postal network, which has suffered a wave of closures in recent years."

As DM News has noted, "A coalition of postal, mailing and marketing groups launched a Web forum on December 1 to bolster discussion about the state of the US Postal Service and how the federal agency can maintain its relevance in the future. The goals of PostalJournal.com are to explore the evolution of the USPS as part of the nation's economic and communications infrastructure and to create an exchange of ideas about the industry, without consideration to professional affiliations. The Association for Postal Commerce (PostCom), the Mailing and Fulfillment Service Association and the Envelope Manufacturers Association launched the site with the support of the Direct Marketing Association and Direct Communications Group. The portal contains reports and papers by external authors and conference presentations from a number of industry experts."

Marketing Direct has reported that "Royal Mail today announced its first-ever 'DM Sale' to boost the use of direct mail amongst new and existing clients. A discount of 20 per cent will be available on new or additional mailings in March and April 2010. Royal Mail said the move was in tune with discounts being offered on other media channels and was not designed to counteract any negative perceptions of direct mail in the wake of postal strikes this autumn."

Kudos to David James who wrote the following in a letter to the editor of The Record-Courier:

I read once of a man who heated his New England home all winter with logs rolled from junk mail. Although possibly annoying, without bulk mail our postal system would not exist in its current affordable form. Without the revenue gained from advertisers mailing third class mail, to send a payment to your credit card company or mail a Christmas card to a loved one would require several stamps with a dollar sign rather than one with a cent sign.

Free broadcast TV is paid by advertising. Commercial free cable channels are only possible by the paid subscriber fees. There is no free lunch. With the cream of the crop postal profit centers being taken by the private carriers which can limit where they deliver, the U.S. Postal Service will attempt to deliver every piece regardless of destination and do it affordably. The U.S. Postal system may not be perfect, but it is definitely a government agency we all depend upon because it is reliable. Yes, the check really is in the mail.

Junk mail may be annoying but it pays the tariff so that we can enjoy an affordable and ubiquitous postal system. Next time you get a piece of third-class mail which you may consider annoying, just imagine your ire at paying $3 to mail a letter across town. Dollar stamps anyone?

From PR Web: "Window Book is pleased to announce that Wallace Vingelis has joined Window Book as Director, Postal Industry Practice. Wallace brings to our clients an additional industry expert on the creation, development and support of innovative solutions for the mailing industry."

From the Federal Register:

Postal Service
NOTICES
Establishment of Prices and Classifications for Inbound Air Parcel Post at Universal Postal Union (UPU) Rates ,
63161 [E9–28766]

[TEXT]  [PDF]

International Product Change:
  Canada Post-United States Postal Service Contractual Bilateral Agreement for Inbound Market-Dominant Services ,
  63161–63162 [E9–28767]

[TEXT]  [PDF]

  Inbound International Expedited Services (1) ,
  63161 [E9–28830]

[TEXT]  [PDF]

The Frederick News-Post has reported that "The United States Postal Service is investigating moving mail-processing from a Frederick distribution center to one in southern Maryland. Recommendations from the results of a study would shift operations, but not close the Frederick distribution center." See also WTOP.

On Hellmail today:

The New York Times has reported that "As first graders from Public School 33 in Chelsea gathered in the lobby of the James A. Farley Post Office on Eighth Avenue in Manhattan on Tuesday morning, they might not have realized that they were part of the return of a nearly century-old tradition — Operation Santa. But when the guests of honor — Postmaster General John E. Potter, Santa Claus, and Kermit the Frog and Fozzie Bear (both representing the Muppets, who have partnered in the program) — took to the stage, there was understandably no mention of a scandal that shook the program last year and caused it to be temporarily shut down in New York and other major cities. The service was briefly suspended when a postal worker in Maryland recognized a registered sex offender as having “adopted” a child’s letter. The man was prohibited from answering the child, and new privacy rules were put into effect."

Bloomberg has reported that "United Parcel Service Inc. expects shipment increases in the “low single digits” during the peak season between Thanksgiving and Christmas, helped by purchases made online, Chief Executive Officer Scott Davis said."

Reuters has reported that "Dutch mail company TNT appealed to workers' unions on Tuesday to reconsider their proposals for a labour deal as negotiations aimed at preventing massive job cuts and avoiding strike action dragged on. Labour unions have so far rejected the company's proposals for a new deal that include a pay cut of up to 3.5 percent. On Tuesday the unions put forward alternative proposals, including a 1.5 percent pay rise."

Nextgov has reported that "The U.S. Postal Service's new bar code system for tracking mail has been delivered behind schedule, over cost and without key functionalities, according to a report from the Government Accountability Office. USPS began the Intelligent Mail program in 2003 with the goal of developing one system that could interact with its more than 25 separate information technology systems and consolidate more than 30 types of bar codes. But according to a report (GAO-10-145) released on Monday, the system has experienced delays and missteps due to deficiencies in USPS' program management and acquisition offices. The system was scheduled to be completed in January, but instead was delivered in two phases -- the first in May and the second on Nov. 29. The Postal Service did not respond to multiple requests for comment by the time this story was posted."

December 1, 2009

According to Rag Content, "In publishing its own report on potential future business models, the Postal Service repackaged old ideas in a new way. More than half of the 43-page document has the Postal Service whining about its current situation that it seems to blame on everyone but itself. It appears that the Postal Service was completely happy with the Postal Reorganization Act of 1970 and wants nothing to do with the Postal Accountability and Enhancement Act of 2006. According to the Postal Service, the Postal Act of 2006 has done nothing but hamper its flexibility, constrain its pricing, burden it with a prefunding requirement, stifle its ability to offer other product and services, and provide no means to reduce its costs." [EdNote: Gee....Someone who tells it like it is. How refreshing.]

A busy day at the IG's office....

(1) The following report
s have been posted on the U.S. Postal Service Office of Inspector General website (http://www.uspsoig.gov/).  If you have additional questions concerning a report, please contact Wally Olihovik at 703.248. 2201, or Agapi Doulaveris at 703.248.2286. 

(2) The U.S. Postal Service Office of Inspector General has posted their Fall 2009 Semiannual Report on the Audit, Investigative, and Security Activities of the U.S. Postal Service (SAR). It is located at: http://www.uspsoig.gov/sarcs/Fall09.pdf

(3) The latest entry has bee posted today on the U.S. Postal Service Office of Inspector General’s Internet site “Pushing the Envelope.” The public, mailers, postal employees, and other stakeholders are invited to weigh in on the online discussions taking place. To view the site, visit http://blog.uspsoig.gov/
 

  • We “Advertise” for You?  In these times of doing what it takes to maintain fiscal solvency, what if the Postal Service started offering advertising space on its property to generate revenue?  Read the blog and add your opinion.
 
You can visit Office of Inspector General’s public website at:  www.uspsoig.govYou can also follow us on Twitter at: http://twitter.com/OIGUSPS.  If you have additional questions, please contact Communication and Work Life Director Agapi Doulaveris at 703.248.2286.

Hellmail has noted that "As the deadline approaches for the start of new EU full postal competition rules, are EU national postal services prepared to operate in the new marketplace? That is, does each postal service understand the new rules and how the changes will impact their operations and revenue streams? Are required cost saving measures and automation already completed or near completion? Do strategies exist to defend against competitors capturing high margin services and profitable large volume customers? What are the strategies for maintaining the unprofitable and declining letters business, to include universal service, as greater postal competition results in further revenue declines? Are improvements to existing services underway to avoid as many customer defections as possible? Is there a strategy for identifying and introducing new innovative services vital for future success and self-sustainability?"

According to Deadtree Edition, "Despite equipment problems, schedule delays, and evidence of engineering miscues, postal officials are eagerly moving ahead with installation of the Flats Sequencing System."

Hellmail has reported that "Billy Hayes, general secretary of the Communication Workers Union described regulation of postal services in the UK as unlike that found in any other country and "uniquely bad". His comments at the Institute of Employment Rights Conference on Saturday, concern what the CWU sees as a 'rigged' regulatory framework by Postcomm that has allowed competitors to select the most profitable parts of Royal Mail's operations and discard the least profitable, leaving Royal Mail to provide an increasingly costly Universal Service."

The Courier, Express, and Postal Observer has reported that "In a recent post, APWU President suggested that the Postal Service's financial problems has one cause and one cause only, the onerous payment schedule for funding retiree health plans. He is right that this is a serious problem. There are reasonable arguments that both the amount that Office of Personnel Management (OPM) says the Postal Service owes significantly overstates what the Postal Service actually owes and that payment schedule makes no sense for the enterprise. (See USPS-OIG white paper, PRC Report) Furthermore, the position that correctly measuring the Postal Service's CSRS payments by excluding obligations for time credited while not in USPS employment needs to be reexamined on its merits regardless of the Federal budget consequence."

From PR.com: "Announcing the launch of a new web site (http://postaljournal.com), the mission of which is (1) to explore the evolution of the American postal system as part of the nation's 21st century economic and communication infrastructure and (2) to facilitate an exchange of postal perspectives by individuals without regard to past or present occupational affiliations. The Postal Journal has been launched through the initial support and participation of the Association for Postal Commerce (http://postcom.org), the Mailing and Fulfillment Service Association (http://www.mfsanet.org), and the Envelope Manufacturers Association Foundation (http://www.emafoundation.org/). Participation and support is open to others who share interest in the study of the American postal system as a vehicle for communication and commerce." [Editor's Note: Support also is being provided by the Direct Marketing Association and Direct Communications Group.]

WKZO has reported that "The Postal Service is planning a hearing tonight on plans to ship some mail sorting operations from their 9th St. facility to Grand Rapids. Postal Service spokesperson Sabrina Todd says as their business shrinks, due to the internet, and competition from private shippers, they are looking for ways to cut costs."

CNN Money has reported that "Stamps.com® (NASDAQ: STMP), the leading provider of USPS® postage online and shipping software to approximately 400,000 customers, today announced that it will offer its Professional Shipper software without any monthly fees (regularly priced at $34.99 per month) to all customers that ship at least $1500 per month worth of parcels of any mail class that includes Priority Mail®, Express Mail®, Priority Mail International®, Express Mail International® or Global Express Guaranteed®. Stamps.com Professional Shipper features a suite of advanced USPS shipping and order fulfillment tools."

BizReport has asked: "Online retailers - is your postal service really delivering?"

Online Media Daily has reported that:

  • The Newspaper Association of America is touting online behavioral targeting as a partial fix for the industry's revenue woes.
  • With more consumer spending shifting to the Web, eMarketer predicts that online holiday sales will increase 5.4% over last year to $30 billion in 2009. That would mark a rebound from the 5.7% decline in 2008, but would still be less than the 30.2 billion total in 2007.

"In the News" this week at Postal Technology International:

Report on the Future Business Model of the Postal Service












 
The USPS Report
 
Papers by External Authors
 
Full Document (pdf)
Executive Summary (pdf)

Appendices:
• Appendix A. List of Related Documents to Future USPS Business Model Paper (pdf)
• Appendix B. Lessons Learned from Other Posts and Industries (pdf)
• Appendix C. National Regulatory Authority Information (pdf)

Papers by External Authors
Toward a New Business Model for the United States Postal Service, Stephen Crawford (pdf)
The Future of the United States Postal Service, Elaine C Kamarck (pdf)
United States Postal Service Future Business Model Analysis & Action Recommendations, Joseph McCann and Harvey Slentz (pdf)
Examination of the Potential Postal Business Models. Report for the United States Postal Service, Alan Robinson (pdf)

The Courier, Express, and Postal Observer has reported that "In choosing a potential business model for the Postal Service, policymakers are as much choosing a path for the entire industry within which the Postal Service operates as choosing a path for the Postal Service itself. The United States Postal Service is only one supplier within a much larger communications and parcel delivery market...."

In a recent post on the Postal Journal web site, postal commentator Gene Del Polito wrote that "Congress has directed the Government Accountability Office (GAO) to undertake the search for alternative postal business models. GAO has begun to reach out to interested parties for ideas on how some new postal architecture might lead to greater cost-efficiency, new postal revenue opportunities, and provide the nation with a well-run, self-sufficient postal system that can provide universal postal service without the need for taxpayer revenue. Designing a new postal architecture is not be child's play. the real focus of those who use mail for the transaction of business communication and commerce, as well as those who provide products and services to those who do, should be on whether a postal infrastructure is working (i.e., satisfying its intended infrastructure mission)." 

The Daily Californian has reported that "Officials at the Postal Regulatory Commission are considering closing the Park Station post office branch on Sacramento Street in Berkeley in the face of a multi-billion dollar deficit for the U.S. Postal Service. Community members voiced their concerns about the proposed closure at a town hall meeting on Nov. 24 at Longfellow Middle School."

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