January 13, 2008

Well, the rumor mill is cranking, and it says that the Postal Service will be announcing soon its intention to raise postal rates by 2.9% when calculated at the class level.

As Ben Stein noted in the New York Times, "Clearly, the economy is slowing. The immense drop in home construction, the slowdown in lending, the falloff in retail sales, the general mood of the nation — fanned by endless fear-mongering in the news media — are taking their toll. There has been a noticeable gain in joblessness, although employment is still very strong by historical standards. Foreclosures are way up, though they still form a tiny percentage of all homes with mortgages. Banks have sometimes been reluctant to lend, and this is scaring markets plenty. The stock market is down sharply from six months ago. It is still at a high price-to-earnings multiple by historical measures, but it has fallen." [EdNote: As if you didn't already know.]

According to the Charlotte News & Observer, "The U.S. Postal Service is probably the last place consumers think they have to be on guard against aggressive pricing and overcharging. That's what Jason Savage, a Raleigh entrepreneur, thought until a recent trip to a Willow Spring post office."

One writer at the Milwaukee Sentinel-Journal has marveled: "It's amazing how many of you figured out the same deviously clever way to go postal in your fight against junk mailers like Capital One."

The Malta Independent has reported that "The government’s 40 per cent shareholding in MaltaPost is being offered for sale via an Initial Public Offering (IPO) and MaltaPost shares will be quoted on the Malta Stock Exchange later this month. At a news conference held at the Mediterranean Conference Centre early last week to announce the sale, Minister Austin Gatt succinctly explained, “The government’s business is government and not business.” “This should allow the government to pursue continued economic growth. At present, 70 per cent of the country’s labour force is employed by the private sector.”

January 12, 2008

According to Computerworld, "Forget all the red ink in the federal budget. The White House is going green on this year's budget. In a move that the White House Office of Management and Budget (OMB) says will save roughly 20 tons of paper, or about 480 trees, the Bush administration will release the government's first-ever paperless budget on Feb. 4. The plan to issue a so-called e-budget means that the White House won't order any hard-copy versions of the budget for the government's 2009 fiscal year, which starts in October. Instead, the OMB will post a fully downloadable and searchable electronic copy on its Web site and make the document accessible to anyone who wants to read it."

Dow Jones has reported that "The Teamsters criticized FedEx Corp. (FDX) for announcing plans to continue classifying its drivers as independent contractors although the California Supreme Court has declared workers there to be employees."

eTrucker.com has reported that "FedEx Corp. reiterated its confidence Jan. 10 as it responds to a tentative assessment by the Internal Revenue Service that its FedEx Ground owner-operators are employees and not general contractors. "FedEx recognizes its ground-contractor model faces challenges on several fronts," said Frederick W. Smith, chairman, president and chief executive officer of the company, based in Memphis, Tenn. "We continue to aggressively address these issues, and we have strong defenses to these challenges." FedEx is preparing to meet with the IRS audit team to review the Dec. 20 IRS assessment and to provide an initial response. FedEx expects the meeting to occur in the spring and says a final resolution will not occur for some time."

Analytiqa has reported that "DHL will become the official express and logistics partner for IMG’s Fashion Weeks around the world, a series of prestigious shows produced and/or represented by IMG Fashion in ten countries spanning four continents each year. Following a successful year working with IMG Fashion in the US market, DHL is now increasing its relationship as the official international express and logistics partner of these events."

Women in Logistics & Delivery Services (WILDS) is a nonprofit organization created to promote women's leadership in the postal and delivery industries. The organization provides networking, mentoring and training opportunities to address issues that women in these industries regularly face. The WILDS web site is up. Check it out at: http://www.shedelivers.org.

January 11, 2008
 
 
The latest issue of the PostCom Bulletin is available online. In this issue:

• The Postal Regulatory Commission this week said the U.S. Postal Service should change the status of Premium Forwarding Service from experimental to permanent. The change would allow residential delivery customers and many post office box customers to continue to have the USPS reship their mail from a permanent address to a temporary address once a week via prepaid Priority Mail.

• National Association of Letter Carriers President William Young takes on the USPS Inspector General’s office in this message to his members.

• USPS career jobs decline. Do Not Mail legislation and the economy. Congressional mail carries high price tag.

• Scottish rural post offices to be closed.

• Research International joins PostCom. Corrected Parascript member information.

• A list of upcoming postal-related events.

The PostCom Bulletin is distributed via NetGram

Environmental Leader has reported that "Earth Class Mail has closed $13.3 million in Series A funding, according to CNET. Ignition Partners of Bellevue, Washington, led the round, and more than half of the money was raised by Keiretsu Forum.Earth Class Mail customers have their mail sent to the company rather than a personal address. Then letter openers, staffed with disabled veterans with Department of Defense security clearance, scan the envelopes and upload images to the Web. Customers then decide which items to have opened and read, recycled, or forwarded."

PostCom Members!! If you mistakenly deleted the emailing we did to provide you a copy of our Special PostCom Bulletin Compendium on Intelligent Mail, you can get your copy here.

The January 11, 2008 issue of the National Association of Postal Supervisors Legislative and Regulatory Update has been posted on this site.

UPS Freight, the nation's fourth-largest less-than-truckload (LTL) carrier, has announced a general rate increase averaging 5.4 percent covering non-contractual shipments in the United States and Canada.

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

Union Network International has reported that "An extraordinary meeting of UNI Post & Logistics global union has given the go ahead to step up campaigning across the sector. A key target is DHL - the logistics giant that operates in 220 countries with almost 200,000 employees and is owned by Deutsche Post World Net. A global alliance of DHL trade unions is being launched to build union membership and to win a global agreement that recognises labour rights wherever DHL operates around the world. UNI - which already has DHL organising projects in Hong Kong and Latin America - will direct the campaign and help develop the research on which specific activities will be based. Verdi, which is the home union for Deutsche Post, will also play a key role."

According to Forbes, "PIN Group, the troubled German mail delivery company that has put itself up for sale, has attracted interest from French, Austrian and Swiss postal services companies as well as from buyout firm CVC Capital, Handelsblatt said, citing unnamed consultants."

Postcomm, the independent UK regulator for postal services, has published a decision document confirming its proposals made in August 2007 that Royal Mail should be given extra flexibility to increase some retail prices and that access margins should be left unchanged.

The Belfast Telegraph asked its readers: "When is an address not an address? That's the question residents of parts of Co Fermanagh have been asking themselves for years. An ongoing problem over the system used for addressing homes in rural townlands in the lakeland county has led to the peculiar situation of many houses and properties seemingly not existing in certain postal databases."

Press Release: "The postal world will unite in Budapest, Hungary for the 9th annual World Mail Awards on Monday 19th May 2008 to reward excellence and best practice in the industry. The applications opened on the 3rd January 2008 and will close on 29th February 2008, don't miss the opportunity to gain the recognition that you have earned. Entries are free of costs and participants can apply to as many categories as they wish. Award Categories and application forms are now available online at World Mail Awards."

The Postalnews blog has noted that "US Postal Service employment statistics showed a continuing decline in the career workforce at the end of 2007. The USPS ended the year with 681,013 career employees, down 1.9% from the prior year. The decrease of 13,329 career jobs was more than made up for by 21,537 added casual workers, and 11,801 transitional employees. By craft, clerks and nurses saw the largest decline, down 4.5%, for a loss of 9,515 jobs."

The Fort Wayne Daily News has asked: "have you seen the design for the Indiana stamp? In addition to the blue and gold state flag, there will be, in the words of the USPS, “an everyday scene or activity.” And what is that “everyday scene or activity” for the Indiana stamp? It is a farm tractor pulling a chisel plow through a field with a cityscape in the distance. How did this happen? Did the governor’s office sign off on this? Which of our U.S. senators or representatives let this get through committee? Or does the USPS do these things without consultation with the states involved? Does Arizona want to be represented by a cactus? Is Illinois best depicted by an old-fashioned windmill? Maybe Iowa still wants to be known for its corn and Kansas for its barns. But should Hoosiers feel comfortable with a farm scene? How long will it take to escape the myth that Indiana is a farm state?"

The Hindu has reported that "As part of modernisation drive, the Department of Posts (DoP) will mechanise its sorting system in metros and other cities, set up national mail grid and take four aircraft on lease to deliver mails in the quickest possible time."

According to the Bihar Times, "It can be termed by many as the propaganda overdrive. The Bihar government has decided to come out with special postcards priced at 25 paise––half the price of usual post cards, with the photograph of chief minister alongside his government’s achievements adjacent to the space earmarked for writing the address of the recipient."

From the U.S. Postal Service: The following reports have been posted on the U.S. Postal Service web site:

• The Comprehensive Statement of Postal Operations

• The 2007 Annual Report 

According to one writer for the Manila Bulletin, "Notwithstanding the drastic decline in the total volume of mails and letters in all postal administrations throughout the world due principally, but not wholly, to the advent of the cellular phone, e-commerce, e-mail, and Internet, nevertheless postal systems all over the world have surprisingly survived by deftly adjusting to the times and by diversifying their services with new products. Contrary to popular perception, the post office is neither dead or dying but alive and kicking. Neither is the postal business a "sunset" industry. On the contrary, it is considered a "sunshine" industry and flourishing."

Reuters has reported that "Package delivery company FedExCorp said on Thursday it remains confident in the strength of its beleaguered ground delivery unit, FedEx Ground."

The Associated Press has reported that "Shares of package delivery company United Parcel Service Inc. rose Thursday after a Bear Stearns analyst upgraded the stock, citing a slew of catalysts for long-term growth including current troubles at rival FedEx Corp."

The Fort Worth Star-Telegram has claimed that "the Downtown Fort Worth Station at 251 W. Lancaster Ave. The building, valued at $5,310,520 by the Tarrant Appraisal District, houses obsolete mail-sorting equipment, and its 99,000 square feet of space is mostly empty -- only the main floor of the three-story building is routinely used, according to a December report by the U.S. Government Accountability Office. Nevertheless, a U.S. Postal Service facility database says there's no "vacant leasable space" there. That's because the database has unreliable, duplicative and contradictory information. Post offices in Denton and Dallas also list no vacant leasable space, despite entire unused floors. As for the $1 million spent in 2006 to repair the Fort Worth post office -- it's the cost of indecisiveness."

[Editor's Note: If you ever wanted to know the kind of untruths (although my preference would be for some stronger expression) about advertising mail that are being preached to state legislators around the nation, read this piece from the Concord Monitor.]

Cox News Service has reported that "UPS's shipping volumes used to be a good indicator of how the economy would be doing down the road — but no longer thanks to changes in how its business customers operate, the package shipper's top executive said Wednesday. D. Scott Davis, who became CEO and chairman of the package shipper on Jan. 1, told attendees of a Metro Atlanta Chamber of Commerce breakfast that fluctuations in the company's fortunes once foreshadowed the economy's direction. But its volume has become more of a real-time indicator in recent years as many retailers and other shippers have switched to so-called "just-in-time" operations to reduce their inventory levels, said Davis, who is also vice chairman of the Federal Reserve Bank of Atlanta."

Arago | Arago Sponsors

January 10, 2008

The Financial Express has reported that "Negotiations in the World Trade Organisation over opening Markets to banks, insurance Companies and express delivery are faltering, the Bush administration and lawmakers said. The WTO papers, distributed in Geneva last month and since posted on the website of the Coalition of Service Industries, recap the progress in the talks. The US and EU pressed the large developing nations countries to allow more investments from US banks such as Citigroup Inc., permit operations of express delivery Companies such as United Parcel Service Inc. and open up tourism, telecommunications and energy services to foreign Companies. The responses were limited, the papers show."

Air Cargo World has reported that:

• A second major investment house is calling for Deutsche Post to pull DHL out of North America. Morgan Stanley, following on the heels of Bear Stearns, said in a Jan. 7 research report that the company needs a "quick, radical solution" to the estimated $900 million in losses DHL faces in the United States. The firm likened the Deutsche Post problems to those of the former DaimlerChrysler before that automaker took action by splitting off its troubled U.S. Chrysler business. "A substantial cut in network size, combined with subcontracting and a focus on international services (revenues from $4.5 billion to $1.7 billion), is the most logical outcome, we think," the firm said. Morgan Stanley's call follows a similar plea late last month from Bear Stearns, which argues the losses in the United States are eating into Deutsche Post's overall value to shareholders.

• FedEx Express launched on Thursday a low cost, day-definite, customs-cleared, door-to-door service in ten Asia Pacific markets.

The DM Bulletin has reported that "The Direct Marketing Association (UK) has welcomed new legislation that will allow death registration data to be used in the battle against fraud and identity theft."
 

PostCom welcomes its newest member: American Catalog Mailers Association 2001 K Street, NW, Suite 206 Washington, DC 20006-1039 represented by Hamilton Davison, Executive Director

The Financial Times has reported that "United Parcel Service plans to borrow about $10bn to buy back stock and expand through acquisitions in its latest bid to boost a flagging share price and shake its image as a conservative company that valued a sterling credit rating above growth."

APWU President William Burrus has asked the union’s state and local presidents to encourage APWU members to write to their U.S. representatives and ask them to co-sponsor and support the Mail Network Protection Act (H.R. 4236). The bill, introduced by Rep. Stephen Lynch (D-MA) on Nov. 15, 2007, would require the Postal Service to bargain with postal unions before it engages in significant subcontracting. Seven U.S. Representatives have signed on as co-sponsors. They are: Yvette Clark (D-NY), Al Green (D-TX), Raul Grijalva (D-AZ), Patrick Murphy (D-PA), Laura Richardson (D-CA), Christopher Smith (R-NJ), and John Tierney (D-MA).

The Bangkok Post has reported that "Thailand Post Co is preparing to franchise 20 postal counters under the commercial name Thailand Post Shop, according to Arnusa Chitmittrapab, senior executive vice-president for marketing and business development. Ms Arunsa said franchisees would earn money from postal as well as financial services including online postal drafts and Pay at Post bill payments. In addition, they can distribute postal products, souvenirs and other goods, and also run other businesses suited to the company's image such as book and stationery sales and Internet services."

Logistics Management has reported that "Express delivery and logistics services company DHL and Walgreens, the largest drugstore chain in the United States, announced today they have entered into a strategic agreement that will more than double the number of Walgreens retail locations offering DHL Express shipping services to more than 6,500 locations by the end of this year, with more than 1,600 of these locations open 24 hours a day."

  eGov Monitor has reported that "In 2007, the Quality of Service Fund (QSF) financed 75 projects, totalling 15.8 million USD, in more than 50 countries. This was the first time that the Fund, created in 2001, actually spent more money than it received. At its last meeting, in October, the QSF Board of Trustees adopted projects in China (system for translating and improving the delivery of international mail), Bangladesh (installation of X-ray detectors to improve mail security), Romania (mobile offices set up in rural areas) and other countries. A total of 21 very diverse projects amounting to 8.4 million USD were approved recently, including a regional project that will enable nine Latin American countries to set up a cost accounting programme."

January 9, 2008

Press.co.nz has reported that "New Zealand Post may stop delivering a Christchurch woman's mail unless she prunes lavender around her letterbox that is attracting bees and creating a "hazard"."