Postal News Page Four

May 31, 2008

A copy of Postcomm's report on the performance of the U.K.'s postal network is available on line.

Reuters has reported that "Belgium is open to the idea of its postal service becoming part of the new joint Danish-Swedish mail group."

Delaware Online has noted that according to postal board chairman Alan Kessler, "the postal service strives to turn around losses."

Internet Retailer has reported that "The cutbacks announced this week by delivery service DHL will force online retailers to update their shipping software and likely will mean changes in shipping labels, say executives at shipping software vendor Kewill Americas. And larger e-retailers that ship in bulk directly to DHL hubs may have to revise their operations, they say."

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

DHL announced two major moves in the U.S. market this week – expanding its strategic relationships with both the U.S. Postal Service and UPS.
The postal industry has not seen a year so filled with regulatory changes, pricing changes, mail preparation changes and issues to be resolved this year. And more is still to come in the second half of 2008. PostCom provides a chart to help guide mailers through the changes and processes yet to come this year.
UPU Congress, debate set for July in Geneva. E-versions of magazines continue to grow. USPS orders new face cancellers from Siemens. Multi-fuel fleet gets poor mileage. ABX will continue to operate for DHL. Correction.
TNT, unions agree on pay deal. Royal Mail pay packet for Crozier called ‘obscene.’ Swedish-Danish postal merger takes some hits. Belgian postal workers to be searched. Royal Mail wants some prices deregulated. Australia Post plans to pay dividends to government next year. Austrian Post acquires Bosnian provider. Philippine hubs lose out to China. Turkish Post establishes parcels unit. DHL opens Leipzig hub. Gebruder Weiss acquires two Swiss firms. Transmile defaults on 2010 bonds.
ICS Corporation joins PostCom.
A list of upcoming postal-related events.

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The PostCom Bulletin is distributed via NetGram

May 30, 2008

The Postal Regulatory Commission will hold a public field hearing in St. Paul, Minnesota on Thursday, June 5, 2008, at 10 a.m., to solicit views relating to the universal service obligation of the U.S. Postal Service and the postal monopoly. The hearing will be in the City Council Chambers, third floor of the City Hall/Court House Building, 15 West Kellogg Blvd. Please contact Nanci Langley (202) 789-6800 or Nanci.Langley@prc.gov for further information.

According to Forbes:

Despite the surge in gasoline prices, alternative-fuel vehicles are still a dicey proposition for delivery services like UPS and FedEx Express. While the companies will likely need to make significant investments on more efficient vehicles in coming years, the technological uncertainty surrounding vehicle technology today continues to constrain investments.
United Parcel Service is wrapping DHL's problems in a nice, neat package.

PrintWeek has reported that "Companies may be better off contacting potential customers via direct mail than the internet or telephone, according to new research. A study carried out by Amarach on behalf of the Irish postal service An Post, claimed the majority of people read their post as soon as they receive it. Although around 70% of people felt most of the direct mail they receive is irrelevant, nearly half said that they enjoy reading their post and 70% said they preferred companies to use the postal service. The positive response for direct mail is surprising given that in the same research, nearly two-thirds of the people surveyed said they felt negatively towards direct mail."

The Evening News has noted that "Just 83.2 per cent of first class post was delivered the next working day in the EH postcode area during 2007/08 – with last summer's strike action being blamed for the drop from 93.8 per cent in 2006-2007."

According to the Press Information Bureau of India, "With the launch of customized protective envelop for Speed Post and Insured Post - a first in the country, India Post has moved a step further in providing customer convenience."

The Business Journal of Milwaukee has reported that "A multimillion-dollar plan to move the U.S. Postal Service's distribution center from downtown Milwaukee to 64 acres in Oak Creek may not be a done deal. U.S. Rep. Gwen Moore (D-Milwaukee) is taking the lead in opposing the U.S. Postal Service's decision to buy the parcel at the southwest corner of South Pennsylvania and West College avenues in Oak Creek. She plans to discuss the decision, which would move the facility out of her congressional district, with Postal Service officials in Washington, D.C. She also plans to work with Milwaukee officials and real estate executives to find an alternative site in Milwaukee, according to Moore's office." [EdNote: Let's see. Three and a half decades. Two postal reform laws. And we still haven't exorcised politics from the postal system.]

According to Bloomberg, "Deutsche Post AG may seek about 12 billion euros ($18.6 billion) in its sale of Deutsche Postbank AG, Germany's biggest consumer bank by clients."

Union Network International has reported that "At a special session for Labour at the recent Rutgers sponsored conference taking place in Portugal on Postal and Delivery Economics, three union presenters tried to add some balance to the proceedings by giving the view of labour on liberalisation and deregulation in the postal industry."

TMCNet has reported that "Japan Post Holdings Co. said Friday its business performance in the first six months of its 10-year privatization process exceeded its expectations with a consolidated net profit of 277.2 billion yen during the October-March period."

According to Transport Intelligence, "UPS is the big winner from the new DHL partnership." See also Bloomberg.

Hellmail has reported that:

The Citipost group has sold it's International business to Pitney Bowes International Mail Services. Citipost described the sale as 'perfect timing' and that it would allow Citipost to focus investment into our end-to-end delivery services in strategic business centres worldwide.
The suggestion that the the UK's monopoly postal service is being run down to push it into the private sector has surfaced many times since the UK signed up to EU postal liberalisation. The possibility seems greater than ever with Royal Mail facing criticism from all sides that it isn't producing anything new and its Chief Executive is helping himself to another £3m in bonuses.

The Postal Regulatory Commission has recommended approval of the proposed Negotiated Service Agreement (NSA) with Life Line Screening. This is the ninth Negotiated Service Agreement reviewed by the Commission. Although the Commission found flaws with many of these agreements, it believes well-structured customerspecific agreements can be successfully used to take advantage of special situations in the market.

Government Executive has reported that "The Office of Personnel Management has suspended a 10-year, $290 million contract awarded to Hewitt Associates to create a new electronic retirement system. The move came just days before OPM was scheduled to launch wave two of the retirement project for employees at the U. S. Postal Service. Currently, 26,000 employees at the General Services Administration have converted to the system, with OPM expecting to transfer all federal employees to RetireEZ by February 2009."

Creamer Media's Engineering News has reported that "Package delivery and supply-chain service company UPS South Africa has introduced to the country a sophisticated tracking technology called the Delivery Information Acquisition Device (Diad), which allows customers, through the Internet or a UPS call centre, to track their parcels’ position within the global UPS network chain."

Business Week has reported that "The president of ABX Air said a plan by DHL to hire United Parcel Service Inc. as its air cargo carrier in the United States is expected to cost 6,000 ABX workers their jobs at a freight hub in Wilmington, Ohio.

According to the Daily Mail, "The reliability of the Royal Mail collapsed last year, with the business failing to hit 75 per cent of its service targets. Tens of thousands of letters and parcels were delayed or lost altogether against a background of cuts in services and strikes. Official figures published last night reveal that the organisation missed nine of the 12 minimum service levels." See also The Telegraph.

"In reaction to Postwatch’s performance figures for 2007/08, CWU responded in anger at Royal Mail management’s deliberately misleading and greedy bonus scheme and continued double standards for different levels of staff."

The Daily News has reported that "The Postal Department could be converted into a lucrative venture only through the introduction of new services and technologies in addition to its normal services, Posts and Telecommunication Minister Mahinda Wijesekara said yesterday."

May 29, 2008

Posted on the Postal Regulatory Commission website are copies of testimony presented at the Flagstaff, AZ field hearing on universal mail service.

International decision-makers will participate in a high-level debate on 25 July 2008 focusing on the theme “The postal sector, an essential component of the global economy”.

The U.S. Postal Service said today that the international delivery company DHL will leverage an existing agreement to give the Postal Service exclusive delivery services to the last-mile in certain locations. The expanded agreement will build on the existing arrangement through a combination of the Postal Service’s Priority Mail and Parcel Select products.

According to Precision Marketing:

is understood to providing financial backing so that the Postwatch group which handles business customer complaints will not be axed when the watchdog folds later this year. The move follows concerns that business customers would be left high and dry in the new beefed up National Consumer Council, headed by Lord Whitty.
Postcomm chairman Nigel Stapleton has hit back at union claims that the regulator is incompetent, arguing that the Communications Workers Union is “undeservedly” reaping all the cost savings Royal Mail has made.

The Daily Tribune has noted that "After a quick, painless swab of the mouth, hundreds of postal employees are wiping their DNA cells on a paper form for a bone marrow registry and becoming candidates to deliver the gift of life."

From PR Web: "Window Book announces software to enable mailers to comply with new Postal Service changes to Priority Mail Open and Distribute service."

Hellmail has reported that "Management at Royal Mail has been under further attack this week after Adam Crozier, Chief Executive at Royal Mail, was accused of being paid millions for effectively running the UK's postal service into the ground. Criticism of a 'reward for failure' regime at Royal Mail has continued to blight the state-owned UK postal service over recent months, despite claims by Royal Mail Chairman Allan Leighton, that Mr Crozier is 'worth every penny'. The Daily Mail today showed Mr Crozier relaxing in Barbados over the weekend."

May 28, 2008

According to CNET News, "Netflix is banking on the belief that streaming movies to people's living rooms is the future. CEO Reed Hastings said during Netflix's investor day here that he expects the business of renting physical DVDs will peak within the next five years. However, Netflix representatives later said they forecast that DVDs will remain strong for at least a decade." In an interview with Walt Mossberg at D6, Amazon CEO Jeff Bezos said, "We are working on a new version of video on demand, a for pay streaming service we will release in the next couple of weeks. The streaming service will start instantly and it's a la carte, for pay." This will be in addition to Amazon's download-to-Tivo service. " [EdNote: A sign that yet another product of the postal mailstream is headed for extinction.]

CNNMoney has reported that "The U.S Postal Service, or USPS, is expected to announce a slate of large express freight contracts in August after being allowed to bid for commercial contracts for the first time."

PostCom welcomes its newest member: ICS Corporation, Inc. 2225 Richmond Street Philadelphia, PA 19125-4324 represented by Steven Kulick, CMDSM, MQCS, EMCM Director or Quality Control & Assurance

ITPro has reported that "The [UK]Post Office has entered into a five-year deal to outsource the implementation of two new business intelligence (BI) systems as part of a modernisation programme designed to improve profitability and business responsiveness."

Bloomberg has reported that "United Parcel Service Inc., the world's largest package-delivery company, said it expects as much as $1 billion a year in new revenue as it takes over U.S. flying for Deutsche Post AG's unprofitable DHL unit. The new business will help UPS cushion the blow from declining package demand as U.S. economic growth slows. Deutsche Post said the accord should produce $1 billion in annual savings by shutting U.S. sorting facilities and cutting as many as 1,800 jobs as DHL struggles to compete with UPS and FedEx Corp." See also Air Cargo World [1] [2], the Dayton Daily News, and the Associated Press.

The Tennessean has reported that "The United States Postal Service is considering whether to build a new processing and distribution facility near Nashville International Airport."

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

The regulated prices for Royal Mail services will have cost the British post 2.6bn GBP (approx. 3.3bn euros) in lost turnover by the end of 2010. The post said the regulated prices had been calculated on the basis of an overall increase in volumes. However, in reality volumes had shrunk, as the recently published annual report showed a 3.2% drop in volumes for the universal service provider.
News of the remuneration paid to Royal Mail CEO Adam Crozier has incensed British politicians. British press called Mr Crozier the most highly paid civil servant in the UK.
There appears to be growing criticism against the planned merger with Post Danmark in Sweden.
Only two weeks after resuming their talks, TNT Post and the Dutch trade unions have reached reached an agreement in principle on a new one-year collective labour agreement.
The dominating market role of Deutsche Post means that it will take at least another ten years before proper competition prevails in the German market.
Last week, Österreichische Post announced the takeover of the Belgian logistics company HSH Holding (turnover: 18m euros, 5m parcels), which specialises in the delivery of pharmaceutical products. This acquisition further strengthens Österreichische Post’s position on the European pharmaceutical distribution market.
In Belgium, La Poste will be submitting employees at its sorting centres to searches. The decision came after numerous complaints from customers over missing consignments.
Australia Post has been exposed to severe criticism from the country’s political opposition in connection with the planned increase in postage rates from October.
The United States Postal Service has not derived much joy from the use of ethanol driven vehicles.
Employees of the Israel Postal Company have announced plans to increase pressure on Ariel Atias, the country’s Minister of Communications.
Österreichische Post appears to have expanded its parcel network in South Eastern Europe with a further acquisition. In reference to a communication from the central antitrust authority in Bosnia and Herzegovina, »Wirtschaftsblatt« (20.05) reported that Post International Beteiligungs GmbH had approved a complete takeover of the Bosnian parcel service provider 24-VIP Express Logistics Services d.o.o.
The Turkish post has announced the founding of its own separate parcel segment planned for this summer.
Schweizerische Post will collect parcels from customers’ homes in the future on condition that they are franked with the internet service WebStamp.
DHL has confirmed that Chris Fahy, president and CEO of DHL Global Forwarding, has left the company. Mr Fahy was thought to be one of the favourites to succeed Frank Appel as head of logistics. At the beginning of March, however, Bruce Edwards and Hermann Ude were appointed to the board.

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.)

Online Media Daily has noted that "Running an online campaign may seem less harmful to the environment than, say, launching a national print promo--but the energy used to serve the ads could actually make the digital project more of an Earth Day offender."

According to Brand Republic, "Royal Mail faces further upheaval with the news that marketing director Alex Batchelor is to depart, coming just days after it announced an operating loss of £279m for last year. Batchelor will leave the postal operator at the end of next month following a board-level restructure that has resulted in group strategy director Alex Smith taking on the role of strategy and commercial director."

This is to remind you that there is a public workshop on the Universal Service Obligation and the Postal Monopoly scheduled for Thursday, June 12th in the Postal Regulatory Commission's Hearing Room, and moderated by PRC Chairman Dan Blair. This is an announcement of the Workshop (as well as the Field Hearings on June 5th and June 19th): http://www.prc.gov/Docs/59/59921/OrderNo.76.pdf The questions and issues most relevant to the June 12th workshop are outlined in this document: http://www.prc.gov/Docs/59/59731/Order%20No.%2071.pdf

Hemscott has reported that "Deutsche Post World Net AG.'s express mail business DHL and U.S. Postal Service have signed a cooperation agreement, Handelsblatt reported, citing industry sources. As an airfreight partner of U.S. Postal Service, Fedex Corp. is also participating, the paper added."

Transport Intelligence has reported that "A decision this month by the California Appellate Court has reversed a 2007 decision by a Los Angeles Superior Court that had granted motions by US-based United Parcel Service (UPS) and Mail Boxes Etc Inc (MBE). In a public statement, PSA president Howard Spanier claimed: "The Court of Appeals gave us a total victory. The court reversed every single claim that UPS/MBE made and awarded costs on appeal to the plaintiffs. This is a complete repudiation of UPS' and MBE's position and was the last major hurdle for us. Now, UPS must face a public trial, where UPS and MBE will be forced to explain their anti-franchisee actions in front of a jury."

USA Today has reported that "The future of magazine publishing increasingly is appearing on a digital display — not just a newsstand. Advancements in software and hardware are making it easier for a growing faction of consumers — including coveted younger readers called screen-agers — to read their favorite publications on the Internet or download and read them later offline. The growing popularity of virtual magazines could be a panacea for foreign publishers — many of whom want to crack the U.S. market but are hindered by distance and mailing costs — and it extends the reach of American publications to rural areas, where many titles are hard to find. Playboy launched a digital edition in 2005 with the help of Zinio. It has saved $1.2 million from lower manufacturing, distribution, paper and postal costs."

According to CNNMoney, "The long-awaited plans by DHL to shrink its U.S. package delivery unit, which has lost around $3 billion over the past four years, are expected."

NewsDurhamRegion has reported that Canadian "rural posties protest high gas prices."

May 27, 2008

Air Cargo World has reported that "DHL signed a major air freight agreement with the United States Postal Service. Deutsche Post World Net plans to announce details of the agreement via webcast from Bonn on Wednesday. The agreement calls for FedEx to carry some air freight on behalf of the USPS. Sources familiar with the agreement said FedEx will take over some unprofitable air routes initially and increase the service gradually. DPWN Chief Executive Officer Frank Appel is also expected to announce the closing of a quarter of DHL's U.S. stations and the elimination of hundreds of jobs. DHL is expected to redirect its growth efforts on its international service." See also the Journal of Commerce.

Check Business Week's piece on "The New Push to Get Rid of Paper.Three decades after "paperless office" entered the business lexicon, the financial and environmental need to reduce paper is greater than ever."

The Journal has reported that "Sen. Charles Schumer is calling on the U.S. Postal Service to expedite an agreement with Cappelli Enterprises on the sale of the post-office building and relocation of its operations elsewhere downtown. In that letter, Schumer urged Postmaster General John Potter in Washington to "jump-start negotiations with the city of New Rochelle and its development partner." New York's senior senator says the Postal Service's financial demands "puts the project in jeopardy." [EdNote: No word yet on whether Sen. Schumer will get the Congress to indemnify the Postal Service against any financial loss....By the way...don't expect one.]

The Peninsula has noted that "Q-Post sponsored the Growth Award at the Universal Postal Awards in Budapest, Hungary, organized by the Tri-Angel company in collaboration with the Universal Postal Union (UPU)."

Union Network International has posted a brief update on the status of bargaining between New Zealand Post and its largest postal union.

As DM News has noted, "As baby boomers slowly give way to the Internet generation, surely it's only a matter of time before print fades away with them. The new breed works and plays online. They read newspapers or magazines on the Web. They exchange text messages and e-mail, not postal letters, and the direct mail they get, they trash without opening. But actually, research shows that for many purposes, print is the preferred medium of consumers and business executives alike. It continues to be a top performer in advertising and marketing campaigns. What's more, the vast majority of people do in fact read or skim their direct mail, especially when it speaks directly to them."

Deutsche Welle has reported that "The express mail delivery and logistics company DHL, which is a division of Germany's postal giant Deutsche Post AG, inaugurated its principle European hub at Leipzig-Halle airport in eastern Germany on Monday, May 26."

May 26, 2008

From PR Urgent: "ZIPCodeWorld™ United States Gold PO Box Edition consists of a list of more than 9,000 Post Office™ Box (PO Box) only ZIP codes, state and city name. It bundled with the ZIPCodeWorld™ US Gold Edition which covers 5-Digit ZIP code, city name, alias city name, state code, phone area code, city type, country name, country FIPS, time zone, day light saving flag, latitude, longitude, county elevation, Metropolitan Statistical Area (MSA), Primary Metropolitan Statistical Area (PMSA), Core Based Statistical Area (CBSA) and Census 2000 data in United States. The complete database contains over 80,000 precise records."

Bloomberg has reported that "Deutsche Post AG, Europe's biggest postal service, hasn't decided whether to sell its majority stake in German lender Deutsche Postbank AG as the company considers options for the holding. ``We're in a sounding-out process,'' Deutsche Post Chief Executive Officer Frank Appel told reporters today near Leipzig, Germany. The mail operator is ``not in a hurry'' to decide on the future of the stake, he said." For more background on impending changes in the German banking market, check out the Financial Times.

DutchNews has reported that "Postal company TNT announced on Saturday that it has reached an agreement in principle with postal workers unions on the disputed pay claim. The company has offered 3.5% with 0.5% conditional on an agreement on new productivity and working conditions being reached by April 1 2009."

Forbes has reported that "TNT NV said on Monday it will now target significantly lower workplace benefits for Dutch domestic postal workers after reaching a wage deal with unions over the weekend to avert a nationwide strike later this week." See also Sharewatch.

The Australian has reported that "Australia Post expects to raise about $155 million a year from increased postal charges, in what the Opposition charged this morning was a tax grab. A budget estimates committee was told Australia Post would pay a “special dividend” of $150 million to the Government in the 2008/9 financial year, out of its profits. Liberal Party senator Simon Birmingham asked Australia Post executives how they justified slugging consumers with the increased postal charges, when that money would simply be handed over to the Government. Australia Post group financial controller Michael Tenace said the two amounts “had nothing to do” with one another, with the $150 million to be paid to the Government coming out of two years’ profits. On the other hand, he said postage charges were intended to be increased as a result of decisions made in the relevant business division."

The Hindu has reported that "The Tamil Nadu postal circle on Monday entered into a tie-up with ARM i-Solutions for providing ticketing services through post offices in the state. Tamil Nadu Principal Chief Post Master General Indira Krishna Kumar told reporters here today that the tie-up would offer domestic air, railway and bus ticketing services to the people of the state."

The Jerusalem Post has reported that "Israel Postal Company workers plan to disrupt the distribution of National Insurance Institute allotments, and to refuse to collect income tax, value-added tax and other payments due the state, as well as to prevent people from switching memberships in health funds at post offices. The workers are protesting against the Finance and Communications ministries' refusal to give their company a "safety net" to prevent it from losing money as it increasingly faces competition from the private sector."

May 25, 2008

The Times has reported that "on the ground floor of the Royal Mail’s huge Mount Pleasant sorting office in London, an army of postal workers is busy feeding letters into machines that can now decipher even the most spidery human handwriting. Three floors up, a dozen colleagues are spending the day at the gym. Helped by occupational-health specialists, they are working out in a room full of equipment or doing step exercises, sit-ups and stretches. The gym, thought to be the only rehabilitation facility in the UK to be housed on company premises, aims to get sick Royal Mail staff well enough to rejoin their coworkers on the sorting floor. The £350,000 facility is a key part of an antiabsenteeism programme that Royal Mail - struggling to survive in a changing marketplace - claims has cut absence from 7% to 5%, saved £227m and brought 3,600 staff back to work since 2004."

May 24, 2008

According to ABC.az, Azerpoct (Azerbaijan State Postal Company) is planning to take a range of measures in regions of Azerbaijan.

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

Intelligent Mail was the hottest topic at this week’s National Postal Forum, so hot that postal officials had to schedule a second Intelligent Mail session to accommodate the crush of interested attendees. Postmaster General Jack Potter talked about it in his keynote address during which he discussed other major challenges facing the industry including the Flats Sequencing System and environmental issues.
Postmaster General Jack Potter has named Sam Pulcrano, a 33-year Postal Service veteran, to be the first USPS vice president of sustainability. Pulcrano will be responsible for coordinating energy and environmental programs throughout all departments of the Postal Service.
Intelligent Mail Barcode (IMB) sessions at this week’s National Postal Forum were standing room only (see lead article), and while the USPS tried hard to walk customers through the process of preparing for IMB implementation, many questions yielded the USPS response, “we’re still working on that.” Both customers and postal managers alike appear to be struggling to get issues resolved in time to make the USPS-proposed May 2009 implementation date.
Several sessions at the Forum featured presentations from customers and service providers that are piloting Full Service IMB with the USPS, or working in that direction. Some are further along in the process than others, but all had valuable advice to give those just starting out on the IMB road, or even those that think they have everyting ready.
The USPS at the Flats Symposium session at this week’s National Postal Forum announced that it is considering an initial Flats Sequencing System (FSS) pricing strategy that would allow mailers to qualify for carrier route rates on their FSS flats, without having to prepare carrier route bundles. Mailers would document that mailing densities would qualify for the carrier route rates, but the physical mail preparation likely would be 5-digit bundles for FSS zones.
In this opinion piece, Robert Schrum of the Lexington Institute blames this month’s postage increase on the Postal Service for offering ‘sweetheart’ deals to bulk mailers and postal labor unions.
Long-time letter carrier Richard Keegan defends the Postal Service against allegations of special treatment for mailers and labor unions made by Robert Schrum of the Lexington Institute in the Asbury Park Press.
USPS discontinues New Orleans Mail Restoration Program. Mailing requirement changes for Parcel Select. PRC publishes notice of field hearings, public workshop on universal service obligation. USPS testing hydrogen fuel cell vehicles. Postal Service explores move of computer facilities. Fortieth anniversary Forum draws more than 5,000. PostCom members win awards at NPF.
Dutch strikes continue, TNT asks for talks. Dutch postal market stays closed for now. Deutsche Post wants U.S. partner, but no thanks, UPS. Cash needs, private investment in Royal Mail debated.
Spiegel Brands is newest PostCom member.
A list of upcoming postal-related events.

The PostCom Bulletin is distributed via NetGram

According to the Daily Mail, "The chief executive behind the controversial closure of 2,500 post offices was paid more than £3million last year, it was revealed. The extraordinary payout for Royal Mail boss Adam Crozier was described as 'obscene' by one MP and 'immoral' by a trade union. It makes Mr Crozier Britain's best-paid civil servant despite a catalogue of problems at his state-owned company."

The Financial Times has reported that "Royal Mail has defended payments to top executives after the annual report revealed that Adam Crozier, chief executive, received more than £3m this year in spite of mounting losses at the state-owned group." See also The Scotsman.

Air Cargo World has reported that "The owners of DHL plan to announce changes in the carrier's troubled U.S. express business next week that industry experts believe will include a sharp withdrawal from many asset-based operations in the United States."

The Billings Gazette has reported that "Mail carried in a small plane that crashed in Billings Heights Friday morning was strewn in a swath two miles long and 150 yards wide, according to postal service spokeswoman Lisa Blomquist. The Postal Service has three teams searching the area for mail. Blomquist said they have recovered "quite a bit" of the mail. "

According to Smart Money, "The Philippine government will ask United Parcel Service Inc. (UPS) to retain some operations in the country after the U.S. logistics giant announced it was relocating to southern China."

UPS' most recent income statement is available on Yahoo!

May 23, 2008

From Business Wire:

Newgistics Inc., the only provider of a postal-based, intelligent logistics solution for forward and returns shipping, today announced it was honored with the prestigious 2008 Corporate Business Achievement Award from the United States Postal Service (USPS).
Heart to Heart International Inc. and FedEx Express, a subsidiary of FedEx Corp. (NYSE: FDX), will deliver the first private airlift of relief supplies to China following a massive earthquake in Sichuan Province.

The Press and Journal has reported that "The UK Government was urged last night to prepare to impose a levy on Royal Mail’s competitors to keep universal letter deliveries going — or risk the collapse of the service. The warning came after Business Secretary John Hutton renewed the government’s commitment to a universal service — a nationwide delivery service at a single tariff — but insisted he must not pre-empt a study into Royal Mail’s future."

May 22, 2008

According to The Watch, "A grassroots effort to help community members take charge of the amount of junk mail they receive was briefly thwarted on Tuesday when the United States Postal Service forced organizers enrolling people in a catalog reduction service to leave its premises. Denver-based USPS spokesperson Al Desarro said that junk mail gets a bad rap. Not only is direct mail the lifeblood of the USPS, which receives no government subsidies to operate, but that it is directly responsible for millions of jobs."

In testimony submitted today at a Postal Regulatory Commission (PRC) public hearing in Flagstaff, AZ, Matt Panos, a member of the Direct Marketing Association Nonprofit Federation (DMANF) Advisory Council and vice president of ministry partnerships and resources at Food for the Hungry, raised questions about the Commission’s proposed definition of Universal Service Obligation (USO) and urged the PRC to take additional time to analyze how that definition will affect nonprofit organizations and their ability to raise money through the mail.

Precision Marketing has reported that "Royal Mail marketing director Alex Batchelor is leaving at the end of next month following a restructure of the marketing team."

The Postal Regulatory Commission will sponsor a workshop on Thursday, June 12, 2008, from 10 a.m. to 12 p.m. The workshop, regarding universal postal service and the postal monopoly in the United States-- including the monopoly on the delivery of mail and on access to mailboxes, will be held in the Commission's hearing room, located at 901 New York Ave., NW., Suite 200, Washington, DC. The moderator will be Commission Chairman Dan G. Blair. The workshop is open to the public. The proceedings will be transcribed, and a copy of the transcript will be posted on the Commission's Web site."

DM News has reported that "The US Postal Service plans to redesign its direct mail Web site to make it more relevant to small business owners."

From PR Newswire: "Sirit Inc. ("Sirit"), a leading provider of radio frequency identification ("RFID") technology, today announced that the INfinity 510 ("IN510") UHF reader was selected for Finland's postal delivery service RFID implementation. Readers have been installed across the country as part of a system to monitor and quantify the speed and accuracy of real-time postal deliveries. "

The National Association of Major Mail Users has noted that "Canada Post has issued its first annual Corporate Social Responsibility Report (CSR), reflecting the corporation’s economic, social and environmental objectives, strategies and performance. Also, Canada Post has introduced a new flat-rate shipping fee designed to make it easier to buy and sell goods using on-line auction site eBay. The “Flat Rate Box” is a new co-branded product. "

Richard Keegan, a letter carrier and the Customer Connect representative for the Brick Post Office, wrote in the Asbury Park Press, "As a 25-year veteran of the Postal Service, I feel obligated to respond to the scathing attack against it by Robert R. Schrum in his May 9 commentary "Postal Service gives licking to average patron." Schrum, of the Lexington Institute in Virginia, chastised the service for the rate increase that went into effect May 12. He blamed the increase on the "sweetheart deals" obtained by bulk mailers and the postal labor unions. He claims the Postal Service is placating the large mailers at the expense of the average consumer. He could not be more wrong."

ThisIsLondon has reported that "Germany's postal service Deutsche Post has apologised for printing stamps of Nazi wartime leader Rudolf Hess for a group of Hitler fanatics. A new service allows customers to design their own stamps using Internet images. Postal workers check for decency and taste - but admit something went badly wrong with the picture of Hess."

The Other Russia has reported that "Russia’s major print media have called off a May 21st day of protest, which was prepared in response to skyrocketing postal delivery rates. As the Interfax news agency reports, the newspapers and magazines have cancelled their demonstration after the presidential administration stepped in. White lines won’t be issued tomorrow,” Pavel Gusev, the editor-in-chief of the Moskovsky Komsomolets, told Interfax. “The fact of the matter is that the presidential administration and the Ministry of Telecommunications and Print got involved in the affair, and most likely, all of our demands will be satisfied.” Gusev, who heads a federal advisory committee on matters of freedom of speech in the media, said that special negotiations will take place Thursday."

May 21, 2008

The Financial Times has reported that "Royal Mail has called on the government to allow it to raise capital by issuing shares to modernise its operations further and preserve the uniform delivery price. It says this would provide the "crucial risk capital" needed to take long-term decisions, speed up its transformation by reinforcing market disciplines. and attract "the best management talent". The call follows a similar recommendation last week from Postcomm, the postal regulator, which said the state-owned operator should be freed to raise capital from the private sector following the example of several other European post offices. In its submission to the independent review on the universal service, Royal Mail also backs Postcomm's recommendation that the government should relieve the state-owned operator of its £3.6bn pension deficit. Royal Mail says most restrictions on its operations should be lifted - leaving only the prices of stamps and metered mail to be set by the regulator. It should be allowed to introduce products without advanced clearance, and to compete for the business of big postal users."

SocalTech News has reported that "Los Angeles-based Stamps.com, a provider of PC postage products and customized photo postage, said today that it has received an extension to offer its popular PhotoStamps product through May 16, 2009. The firm's product allows consumers to upload any digital photograph or use a licensed image on their own, custom postage. According to Stamps.com, the extension is to the fourth phase of a market test for the postage, which is being offered with permission of the U.S. Postal Service in a pilot program. The company said that it has now sold more than 58 million of its PhotoStamps."

Yesterday, at the Gaylord Palms in Orlando, Serenity Edwards, director, Corporate Responsibility for the Direct Marketing Association (DMA), Dick Goldsmith, chairman, The Horah Group, and Phil Riebel, environmental director, North America, UPM-Kymmene Inc., discussed how and why marketers should make the effort to “go green.”

The Wall Street Journal has reported that "Getting the U.S.Postal Service to deliver mail efficiently is hard enough. Getting it to deliver it fuel-efficiently is apparently even harder. Bloomberg reports on the latest unintended consequence of the U.S. government’s obligation to outfit many of its vehicle fleets with cars and trucks that run on alternative fuels. That 1992 mandate almost never translates into really alternative-fuel vehicles, like ones that run on natural gas or even electricity. Instead, about 99% of government purchases are “flex-fuel” vehicles that can burn ethanol, but usually don’t. The Post Office bought 30,000 flex-fuel vehicles between 1999 and 2005, Bloomberg notes. The result? Fuel consumption shot up—and not because mail routes got longer:"

From PR-Canada: "In what could be called a niche within a niche, ArtisticPostage.com has introduced specific types of postal wedding stamps. (http://www.artisticpostage.com/Wedding_Stamps.html) Covered types include military wedding stamps, destination wedding stamps, monthly wedding stamps, and Asian-inspired wedding stamps."

The Economic Times has reported that "India Post has tied up with US-based postal solutions provider Pitney Bowes to offer enhanced mailing services to the users. The American company is also in talks with the postal department for setting up ATM-like kiosks from where users would be able to send mails and parcels."

From Business Wire:

Zazzle (www.zazzle.com), the only on-demand, online retail platform to offer billions of products that ship in 24 hours, was recognized by the U.S. Postal Service with its Strategic Business Development Award for the company’s commitment to a successful business partnership with the Postal Service.
The New England Direct Marketing Association (NEDMA) recently sponsored an open discussion in response to increased concern about the “Do Not Mail” movement and how to address the issue as responsible marketers. Jerry Cerasale, senior vice president of government affairs for the Direct Marketing Association (DMA), facilitated the “town hall-like” session that helped codify how direct marketers in New England can demonstrate their commitment to consumers while continuing to run successful businesses.

Federal Register: This proposal would revise Mailing Standards of the United States Postal Service, Domestic Mail Manual (DMM[supreg]) to reflect changes to the mailing requirements of our Shipping Services product, Parcel Select[supreg], by requiring new markings on BMC-Presort or OBMC-Presort (Inter-BMC), and origin-entered Barcoded Intra-BMC and Barcoded Inter-BMC packages. DATES: We must receive your comments on or before June 20, 2008.

The DM Bulletin has reported that " Royal Mail has told the independent postal sector review that wide changes in the way it is regulated are necessary in order to solve the issues facing the universal service. The company wants more of its business services to be exempted from its universal service obligation and for the terms on which it grants access to its delivery network to rivals reviewed."

According to the executive director of the U.S. Customer Postal Council, "if you own and maintain your mailbox, should a government agency really have the right to tell you how you can and can't use it? Of course not. In fact, that's exactly what the blue-ribbon President's Commission on the Postal Service argued in its 2003 report. The commission proposed that consumers choose whether or not to allow private individuals or delivery companies to access their mailboxes, "so long as it does not impair the universal service or open homeowners' mailboxes against their will." A 2007 report by the Federal Trade Commission agreed. The Postal Service's monopoly on mailbox use "limits consumer choice and artificially increases the costs of private carriers," it concluded. The FTC also reported on eight countries without mailbox monopolies. For one thing, none noticed a significant loss in postal revenue. Six reported little or no problem with theft from the mailbox. Tellingly, the United States is the only country in the world with a monopoly on mailbox use."

The Guardian has reported that "Britain's Business Post Group Plc posted a 45 percent rise in annual profits on strong growth in its UK Mail unit, sending shares higher on Wednesday, and said the start of the new year had been encouraging."

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

Postbank depreciations and the currency effect caused Deutsche Post AG’s profit to shrink considerably during Q1 compared to the same quarter last year.
Royal Mail CEO Adam Crozier said Royal Mail made a 394m euros profit. The post said the universal service had contributed a loss of almost 126m euros.
The Norwegian post saw a slight increase in turnover, accompanied by a drastic slump in profit during the first quarter of the current financial year.
Reducing the government’s ownership of the post to the blocking equity stake is a conceivable idea as far as Austria’s finance minister Wilhelm Molterer is concerned.
Bulgaria’s post BG Posts appears to be facing radical restructuring. Media reports state that the post’s six divisions will be turned into financially and legally independent segments and bundled under the umbrella of a holding company. This process is due to be completed by 1 October this year. The government wants to give Finance Post, Bulpost/EMS, Post Trans and Trade, Bulgarian Philately, Hybrid Post and Post Tourist the opportunity to attract investors independently. None of the six segments will be expected to perform mail services, especially not the universal service.
Consumer oriented German PostKundenForum advocates a modernisation of Germany’s universal postal service. Customers’ interests should be at the fore of the future service, not the existing product portfolio provided by the nationwide service operators.
The U.S. Postal Service intends to include return parcels in its business operations through co-operation with major express firms in the American market. Previously, USPS would only take return parcels to the nearest post office, from where co-operation partner Newgistics would take them to the sender. Newgistics mainly serves customers from the clothing and electronics industry. USPS now wants to reach out and work with UPS, FedEx and DHL, said James Cochrane, vice president of ground packages. None of the three named operators was willing to comment on the USPS plans.
UPS appears to be planning major job cuts and restructuring measures in Spain.
According to media reports Japan’s leading CEP and logistics operator Yamato (2007/2008 turnover: 7.54bn euros, 217.3m euros profit) is planning to expand services into South Korea and China.
Mail order firm Quelle continues to shun Österreichische Post when it comes to dispatching parcels.
DHL France has introduced a new product in the French express market. D12 allows customers to choose between 24 and 48 hours delivery time; in both cases, delivery will be before 12 noon. The new offer applies to parcels and palettes up to 1,000 kilos.
The approx. 116,000 employees of French La Poste will receive a 2.5% pay increase.
Russian press reports claim that DHL intends to open a new route between St Petersburg and Helsinki.

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

The Jakarta Post has reported that "State-owned postal service company PT Pos Indonesia says it will directly deliver cash assistance to low-income families."

The Atlanta Business Chronicle has reported that "United Parcel Service Inc. is going to spend $16.5 million to double the size of its facility in Ft. Myers, Fla., so it can keep up with growth in southwest Florida." See also the Financial Times.

The Bakersfield Californian has reported that "Preparing for the eventual extinction of its DVD-by-mail rental service, Netflix Inc. on Tuesday introduced its first solution for subscribers who want entertainment delivered directly to their television sets with just a few clicks on a remote control."

According to Socialist Worker Online, the U.K.'s postal union must use its power to stop the sell-off of Royal Mail.

State-owned mail group Poste Italiane could consider joining an Italian consortium to rescue Alitalia if doing so makes commercial sense, its chief executive officer told Reuters.

According to The Times, "Royal Mail will have made £2.6 billion less than expected by the time that its price-control period ends in 2010, the company said yesterday. The revenue shortfall from the present pricing plan, which controls among other things the price of stamps, was attributed largely to Postcomm's estimate in 2006 that the postal market would grow, rather than decline, as it has done."

The Moscow Times has reported that "Several national newspapers threatened to print blank front pages in Wednesday's issue to protest a hike in postal charges for subscribers that they likened to an attack on free speech. But the protest was called off Tuesday afternoon after last-minute talks. Moskovsky Komsomolets, Izvestia, Argumenty i Fakty and Komsomolskaya Pravda had planned to print blank front pages carrying the message: "You can strangle freedom of speech in different ways. For example, by drastically raising postal charges for subscription." Unlike in Western countries, the postal service sets subscription rates for newspapers. The rates include a delivery charge and vary between regions. Many Russians living in the regions depend on postal subscription to newspapers and periodicals. The postal service says that delivering subscriptions is loss-making."

May 20, 2008

From Business Wire: FedEx Corp. has been rated Number One in customer satisfaction in its industry and also first among about 130 companies rated overall by the University of Michigan’s American Customer Satisfaction Index (ACSI).

PostCom welcomes its newest member: Spiegel Brands, Inc. 711 Third Avenue, 4th Floor New York, NY 10017-4014 represented by Neil O'Keefe V.P. Catalog Marketing.

The Postal Service commits itself to a greener future.

Lockheed Martin announced today that it has provided a grant to the Smithsonian's National Postal Museum for "Mail Call," a new permanent exhibit devoted to the history of mail during times of conflict. The exhibit is part of a major renovation of the museum's history-themed galleries and is expected to open in 2010 - 2011.

The Associated Press has reported that "German conglomerate Siemens AG said Tuesday it has been awarded a $245 million contract from the U.S. Postal Service for 550 mail sorting systems. The new system, called the Advanced Facer Canceller Systems 200, will replace the Postal Service's existing mail sorters, which have been used for almost 20 years to cancel first-class mail."

The text of the Postmaster General's presentation at the National Postal Forum has been posted on the USPS web site.

The BBC has reported that "The names of 45 post offices earmarked for closure in Devon have been confirmed. The list of post offices in the county identified for closure had been leaked last week. But the Post Office has identified a further 38, which are mainly rural branches, to become outreach services or mobile post offices. A six-week public consultation has now been opened by the Post Office into the closure plan."

Brand Republic has reported that "The Communication Workers Union has set itself against Postcomm's call for private investment in Royal Mail, appealing to the government to give the company fresh financial support."

Hemscott has reported that "TNT NV said on Tuesday it has offered Dutch trade unions to re-open stalled workplace talks on Friday as the Dutch postal operator tries to end a series of rolling strikes across the nation. A company spokesman said TNT has told unions it will present various options aimed at ending the deadlock, but declined to provide further details."

Publication of new service standard regulations is a first step that allows the Postal Service to turn its attention to the requirements of section 302 of the Postal Accountability and Enhancement Act. The full extent of any realignment of the postal mail processing and transportation network to achieve these standards cannot be known until the Postal Service develops the plan required by Postal Accountability and Enhancement Act section 302. Thus, there will be a lag between the publication of these service standards and implementation of the related operational changes necessary to support them. The destination and origin entry data files shown below will be updated each Postal quarter in the months of January, April, July and October.

DutchNews has reported that "Postal company TNT has invited postal workers' unions to meet on Friday in an effort to end the impasse over their wage demands."

According to CentreDaily, "Pitney Bowes Inc., the world's leading mailstream solutions company, today announced the introduction of the new Pitney Bowes VariSort(TM) Mixed Mail Sorter, a flexible sorting solution that helps mailers, mail consolidators and private posts automatically process all types of mail--even difficult-to-process materials--to maximize postal discounts."

The Guardian has reported that "Residential customers would rather pay a premium for next-day postal delivery than see standards fall, according to Postwatch."

DM News has reported that:

The passage of the Postal Accountability and Enhancement Act of 2006 and the downturn of the economy have resulted in a year of transition for the US Postal Service, said Postmaster General Jack Potter in his keynote address today at the National Postal Forum in Anaheim, CA. As a result of the new law, the USPS has implemented new pricing regulations and is also working on new service standards, Potters said. “We're in competition with the Internet,” Potter said more than once during his speech. In order to better compete, more value needs to be added to the mail, he said. At the same time, it's “imperative” to keep prices down, Potter said.
As members of the catalog industry gather this week at the ACCM conference, comparisons will be made to the mood at last year's event. The industry had just been socked with a major postal increase, and there was a genuine fear that without making substantial changes, many catalogs would crumble. One year on, many catalogs have indeed changed hands, merged, gone bankrupt, or simply closed. But there are others who created an opportunity out of necessity, and have retooled themselves to survive. The success stories from the trenches are inspiring and include Brookstone, which increased its direct marketing sales by 23% for the year due to the right merchandise mix, and a circulation increase.

Port2Port has reported that "The Israel Post Company, which provides universal postal service to the general population and business entities, said last week that due to dispute with Ariel Atias, Communications Minister, it would lay off 150 employees immediately and cancel the planned hiring of 700 contract employees as regular employees."

As Margot Myers put it for SelfService.org, "Sometimes, when I speak at conferences, I joke about some of the long-standing traditions we have at the Postal Service: "More than 230 years of tradition unmarred by progress.” Beyond that self-deprecating attempt at humor, I’m proud to say that there has been significant progress over the years – from simple innovations like self-adhesive stamps and flat-rate priority mail boxes to more complex ones like automated mail sorting and printing postage online."

Government Computer News has noted that "2008 GCN Technology Leadership Award winner John Edgar is manager of the U.S. Postal Service’s Network Operations Business Solutions portfolio."

May 19, 2008

In his comments at the opening session of the National Postal Forum, Postmaster General Jack Potter made the following points:

Despite the challenging economy, America's confidence in mail has not changed. We know the economy is cyclical and we can count on it coming back. Our mutual goal should be to be ready to take advantage of the opportunities when that happens. If anything, we should accelerate our programs that will help drive the value of mail.
It's amazing what Intelligent Mail will do for us going forward. The implications are tremendous -- you can track and trace mail pieces, do diagnostics, provide timely address correction information, and take out costs for both customers and the Postal Service. We know there are implementation issues, and we have to work through those. It's not going to be easy, but we need to work together. We want your feedback, so read and comment on the proposed rule published in the Federal Register. While it may take a number of years to perfect some of the IMB feedback systems, it will add value of the mail and help improve the environment.
We should not get distracted by Do Not Mail legislation, but we should look in the mirror as to why customers have concerns. We need to collectively address the spirit behind the legislation. We don't talk enough about the good things we do around helping the environment and the value of mail. We will now coalesce that messaging around our new VP of Sustainability, Sam Pulcrano.
Flats are the anchor of the mailbox. America loves its magazines and catalogs. But there are challenges in terms of costs, not just for postage but for paper. That segment of our business is truly challenged. FSS will make our flats operations almost four times more productive than today. We are getting dramatic results at Dulles and are able to reap the savings we anticipated.
We've only scratched the surface in terms of changes from the new law. You haven't seen anything yet. We have new service standards but when we begin to track them service will get even better. We have even more to come in terms of our new pricing flexibility, and will be going to the PRC in the coming weeks with the first of our contract package pricing proposals. We want to be the last mile for everyone, including our competition like UPS, FedEx and DHL.
Everyone needs to understand that we will be taking risks and making mistakes, and learning from those mistakes. You can't grow the business without taking risks. We will not grow the business by being conservative.

Potter also conferred the Partnership for Progress Award to the Mailers Technical Advisory Committee.

Press Release: "At this year’s National Postal Forum, visitors to BÖWE BELL + HOWELL’s Booth No. 607 will be able to see firsthand how the Intelligent Mail® barcode (IMB) provides piece-level tracking through the production mail lifecycle. BBH’s booth theme “Follow the IMB” will show mailers how IMB implementation can increase postage discounts, provide the benefits of piece-level tracking, and give better access to new and existing services."

JCNNetwork has reported that "Nippon Express Co. on Monday denied a news report that its "Pelican"-brand parcel delivery service will be abolished when the company and Japan Post Service Co. integrate their door-to-door package delivery operations in April 2009."

According to Money Marketing, "From today, all packagers and brokers will be able to access their clients' offer documents online, through a new system offered by TMB."

Transport Intelligence has reported that "One of Asia's leading postal organisations, Singapore Post Limited (SingPost), has announced its unaudited results for the fourth quarter and financial year ended March 31, 2008. SingPost reported that for FY2007/08, group revenue increased by 8.4% compared with the previous financial year to S$472.6m*, with all business segments showing an improvement in performance."

From PR Newswire: "To improve efficiency and convenience for online shipping customers, Endicia(R) and the U.S. Postal Service (USPS) have formed a partnership to provide key customers special access to USPS shipping services with Endicia technology. This partnership will enable high volume shippers that use expedited services to be eligible for free Endicia services and shipping software solutions. This is, in addition, to the discounted commercial postage rates which are currently available through Endicia shipping solutions."

From PR Web: "Earth Class Mail™ Corp., the global leader in delivering postal mail online, has announced its acceptance of an invitation from the Postal Regulatory Commission (PRC) to testify to the practicality of using "remote-control mail services" that use the Internet and innovative new technologies to improve mail delivery, increase revenues, and reduce costs. The PRC, at the request of the U.S. Congress, is developing a report on universal postal service and the postal monopoly in the U.S., and expert witnesses such as Cameron Powell, VP of Strategic Development at Earth Class Mail, will be testifying on May 21 in Flagstaff, Arizona."

The Atlanta Business Chronicle has reported that "United Parcel Service Inc. reported Thursday evening The UPS Foundation will deliver more than $1 million in cash and support to the earthquake relief efforts in China."

The Sophia Echo has reported that "Bulgarian Posts will be restructured into a holding of six shareholding companies, which will draw on the public private partnership model, and will appoint a second executive director to represent the interests of attracted strategic investors, a copy of the corporate restructuring strategy, leaked to Dnevnik daily reads."

Forbes has reported that "Deutsche Post AG. is seeking to solve problems at its loss-making Express business in the United States by forming a cooperation with a partner in that country, with Fedex Corp and the U.S. Postal Service as likely candidates."

May 18, 2008

ThisIsMoney has noted that "A plan by regulator Postcomm to partly privatise Royal Mail will fail because of the company's huge and growing pension deficit, according to a leading independent consultant. John Ralfe said Royal Mail was technically insolvent with a £3bn pension hole. 'No trade or equity investor would even consider taking a stake unless Royal Mail could be shorn of its pensions,' he said in a research note for RBC Capital Markets. Postcomm's suggestion that Britain should follow the lead of the Danish and Swedish postal services in allowing partial privatisation was not valid because neither had to cope with such huge pension liabilities."

According to Auctionbytes, "Even with postage rates and delivery expenses on the rise, there's no question that opening online selling to customers in other countries can boost your profits tremendously. However, doing so also opens the door to headaches that can reach international proportions."

May 17, 2008

The Financial Times has reported that "Owners of the UK's smallest businesses are increasingly reliant on the postal service, in spite of concerns about the quality of the Royal Mail's service, according to research published by Postwatch the consumer watchdog."

The American Postal Workers Union (APWU) reached a tentative agreement May 15 on a “first contract” for approximately 120 workers at the Cincinnati Mail Transportation Equipment Service Center (MTESC). If they ratify the contract in a vote on May 28, workers at the private-sector operation will receive a 10 percent wage increase in July — their first raise in six years.

Logistics Management has published a Q&A interview with United States Postal Service executive Jim Cochrane on new pricing and the competitive landscape.

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

The Postal Service last night released its 50-page E-Doc Guide that details the electronic documentation requirements that will be part of the Full Service Intelligent Mail barcode option. PostCom urges mailers to read the guide carefully and advise the Postal Service of any issues or concerns by May 30.
Here are highlights from the testimony presented by postal authorities at last week’s lengthy oversight hearing of the House Subcommittee on Federal Workforce, the Postal Service and the District of Columbia.
Association for Postal Commerce Vice President Kate Muth does more in this postal perspective than just total up the problems facing the Postal Service. She exhorts the mailing industry and the USPS to work together to find solutions and harness their collective power to overcome the massive challenges facing this nation’s postal system.
PRC sets field hearings on universal service, postal monopoly. Flats Symposium at National Postal Forum. Philips named president, CEO of FedEx Kinko’s. UPS Freight continues transit times reductions. IDEAlliance sets meetings.
U.K. Government plans to continue branch closures. Danes are ‘old’ hands at public-private mergers. Royal Mail struggles bring Postcomm call for private investment.
Crosstown Traders joins PostCom.
A list of upcoming postal-related events.

The PostCom Bulletin is distributed via NetGram

According to BBC Berkshire, "Royal Mail has announced the closure of two mail distribution centres in the Thames Valley. After a period of public consultation the company has decided to press ahead with a plan to consolidate its centres in Oxford, Reading and Swindon. The new Thames Valley Mail Centre will be based at an expanded Swindon site. Building work at Swindon is due to be completed by October and the transfer of work from Reading and Oxford is scheduled for June 2009. A spokesman for Royal Mail said it was unclear at this stage how jobs would be affected but he said they would be carrying out consultations with staff."

May 16, 2008

The Delphos Herald has reported that "The Museum of Postal History of Delphos will move to a new location in the near future."

In Order No. 71, the Postal Regulatory Commission (Commission) established a docket to address its responsibility, under section 702 of the Postal Accountability and Enforcement Act (PAEA), Public Law 109-435, to submit a report to the President and the Congress on “universal postal service and the postal monopoly in the United States … including the monopoly on the delivery of mail and on access to mailboxes.” It invited written comments on these topics, including specific questions presented in an accompanying discussion memorandum, and noted that field hearings and a public workshop would be held to obtain additional input. This Order provides some additional details concerning the field hearings and public workshop.

Forbes has reported that "The Dutch government decided on Friday against opening up the Dutch postal market to competition on July 1, stressing there are too many uncertainties to allow for full liberalisation."

Postmaster General Jack Potter has selected Sam Pulcrano as the Postal Service’s first-ever vice president of Sustainability.

Reuters has reported that "Shares in Dutch mail company TNT NV rose 2 percent on Friday after a newspaper reported parliament backs liberalisation of the Dutch mail market as of July 1, causing relief among investors. The Dutch government will discuss the liberalisation of the Dutch mail market on Friday, and Dutch newspaper Het Financieele Dagblad reported a majority of parliament supports an opening of the market as of July 1."

RoadTransport has noted that "A government-commissioned review claims Royal Mail's finances are so precarious they could destabilise its commitment to the universal postal service. According to the document, The Challenges and Opportunities Facing UK Postal Services, Royal Mail may soon become incapable of maintaining its obligation to deliver a UK-wide pricing structure for its letter and parcel service. Royal Mail has a £3.4bn pension deficit and last year its profit fell by a third to £223m. The review panel is due to make final recommendations for reform later in the year."

British postal regulator Postcomm has published some important research findings to help inform the debate that was started in its Strategy Review issued in August 2007 about what sort of universal service would meet the needs of today’s customers. Publication coincides with Postcomm’s second submission of evidence to the Independent Review Panel.

Autoridade Nacionale De Communicaçôes has announced the release of a "'Report on the CTT network of postal establishments as at the end of 2007''. This report refers to the postal establishments of the universal postal service concessionaire (CTT - Correios de Portugal S.A.) as well as to private establishments and those of other entities where postal services conceded to CTT are provided.

The Financial Times has reported that "Royal Mail's urgent need for new investment is firmly on the agenda following the regulator's demand yesterday that the postal operator should be freed to raise capital from the private sector. Postcomm's blast produced a predictable response from the Communication Workers' Union, which said it had overstepped its remit by calling for privatisation. Nor was there a clamour from private equity groups desperate to take a stake in the state-owned former mon-opoly. However, a partnership with the private sector would not only bring in funds, it would encourage the greater efficiency, innovation and flexibility needed to sustain the one-price-goes-everywhere delivery. The possible role of private capital has already been raised by the independent review set up by the government to look at the future of the universal service."

TMCNet has reported that "Federal officials today approved four new rule provisions to a sweeping 5-year-old law known as “CAN-SPAM,” the nation’s first bill designed to regulate commercial e-mails. Part of CAN-SPAM – short for the Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003 – require the Federal Trade Commission to develop rules that would shield consumers from unwanted mobile phone spam. The new rules effectively will make it easier for unwanted e-mail recipients to get off of lists and make it easier to identify who sends those e-mails.'

ManxRadio has reported that "The Chairman of Isle of Man Post says there is much to be learned from the private sector. Pam Crowe is responding to news in the United Kingdom, where the postal watchdog is recommending part privatisation of Royal Mail to avoid a potential slide in the standard of services. She says the proposal wouldn't necessarily be bad news if Royal Mail became more competitive and efficient.'

According to the Telegraph & Argus, "The Government should come clean about the future of Royal Mail, says a top Bradford business representative. Sandy Needham, chief executive of Bradford Chamber of Commerce, says ministers need to be clear about what is planned for postal services in the UK, 80 per cent of which are used by businesses." [EdNote: Of course, you've got to wonder. What possibly makes anyone think that anyone in governmnet, in the UK or elsewhere, has the faintest idea what to do about their nations' postal systems.]

DMM Advisory: "We [the Postal Service] have new documents available on ribbs.usps.gov to help answer questions about the use of Intelligent Mail barcodes. The Intelligent Mail Barcodes FAQs helps answer a variety of questions related to the Federal Register proposed rule as well as current use of Intelligent Mail barcodes. The new Guide to Electronic Documentation and Appointments for Full-Service Mailings will help mailers prepare for the May 2009 implementation of Intelligent Mail barcodes. For customers familiar with existing electronic documentation solutions, the guide details how to populate your files and how to create or update electronic appointments to take advantage of the full-service option. Those unfamiliar with electronic documentation should begin with the PostalOne!® Getting Started Guide at www.usps.com/postalone/guides.htm."

May 15, 2008

The Economist has reported that "Two years ago Britain ended Royal Mail's 350-year monopoly and bravely opened its mail market to competition. It hoped that the bracing wind of competition would force Royal Mail to pull up its socks. The tired old firm, once a sinew of empire, was suffering from woeful industrial relations—workers not only went on strike regularly, but on any given day 7% of them were missing—and decades of low investment. Whereas Germany's Deutsche Post uses machines to sort 89% of letters, Royal Mail gamely sorts half its letters by hand. The government reckoned that in 2002 the American postal service got 25% more work done per employee than Royal Mail did, and that Deutsche Post was 9% more productive."

The Postal Regulatory Commission will hold three public field hearings beginning May 21, 2008, in Flagstaff, Arizona, to solicit views relating to the universal service obligation of the U.S. Postal Service and the postal monopoly. The Postal Accountability and Enhancement Act of 2006 (PAEA) requires the Commission to report to the President and Congress by December 19, 2008, on universal postal service and the postal monopoly in the United States, including the monopoly on mail delivery and access to mailboxes. In addition to consulting with the Postal Service and other federal agencies, the Commission is directed to hear from commercial mailers, postal service competitors, and the general public. Congress mandates that the report focus on: geographic scope; product offerings; access to facilities and services; the frequency of delivery, rates and affordability, and quality of services. The first hearing will be held on Wednesday, May 21, 2008, at 2:00 pm, in the Flagstaff City Hall. The second hearing will be held on June 5, 2008, at 10:00 am, at City Hall in St. Paul, Minnesota, and the third hearing will be in Portsmouth, New Hampshire on June 19, 2008, at 2:00 pm, at City Hall. The Commission will also hold a public workshop on June 12, 2008, at 10:00 am, in Washington, D.C.

The Financial Times has reported that:

Royal Mail should be allowed to raise capital from the private sector to gain access to the funding and expertise it needs to preserve the one-price-goes-everywhere delivery, the postal regulator has said. The post office network should also be demerged from Royal Mail as a separate business, financed by the government without any input of private capital, the regulator says. Postcomm says in a submission to the independent review on the future of the universal service that the state-owned operator should ensure its survival in a declining postal market by forming partnerships with the private sector similar to those in other European countries.
Denmark's post office has already formed a partnership with the private sector that is expanding into other countries ahead of full competition in 2011. This year, the Danish operator agreed a merger with Posten, the Swedish post office. They hope to reap benefits of scale from their enlarged operations, improve customer services and raise further capital to maintain universal services.

The New Nation has reported tha