Advertising Mail Growing Fast

Advertising Mail Growing Fast
>From AP Online January 9th, 2001
By RANDOLPH E. SCHMID Associated Press Writer WASHINGTON (AP) _ For the
first time, advertising mail is growing faster than first-class mail,
Postmaster General William Henderson said Tuesday.
“The mail mix has changed dramatically,” said Henderson, who told the
monthly meeting of the agency’s governing board that advertising mail _ junk
mail to some people _ increased 6.8 percent in the first quarter of the
fiscal year, to 24.3 billion pieces.
That was a larger increase than expected.
But in that same September-December period, first-class mail fell short of
expectations, growing just 0.2 percent to 23.8 billion items.
Henderson blamed the slowing of the economy and the series of business
mergers and acquisitions for the slow growth in first-class mail, widely
used for sending bills and receiving payments.
On the other hand, he said advertising that had been lost to the Internet in
the last couple of years “appears to have come back,” causing the big jump
in advertising pieces.
The quarter ended Dec. 1, and thus did not include most of the massive flow
of both advertising and first-class mail associated with the holiday season.
Henderson reported that the flow of holiday mail went smoothly overall, with
314 million items handled on the peak day, Dec. 18.
The post office also announced that it is continuing discussions for a
possible business alliance with rival FedEx. Officials said a final decision
is expected by March 2. First reported in September, the Postal Service and
FedEx are discussing ways they can work together to save time and money for
both.
Under a suggested plan, mail carriers would cover “the last mile” in
residential deliveries for FedEx, but would not handle FedEx’s signature
overnight deliveries, which primarily go from business to business. Because
mail carriers visit each house daily, they already have an efficient system
in place and using that could save FedEx time and money.
Under the plan being discussed, the post office would do residential
delivery and pickups for FedEx, which would then collect parcels at post
offices and transport them. FedEx boxes or counters might be placed in post
offices and FedEx parcels could be delivered to post office boxes.
The proposal has been opposed by others in the business, including United
Parcel Service and Emery Worldwide.
At Tuesday’s meeting, the postal governing board elected a new chairman _
Robert F. Rider, a businessman from Bridgeville, Del. _ to succeed Einer V.
Dyhrkopp of Shawneetown, Ill. The board also elected a new vice chairman _
Philadelphia lawyer S. David Fineman _ succeeding Rider.
No mention was made of Henderson’s future plans despite reports that he
plans to leave office when his three-year contract as postmaster general
expires in May. Agency spokesmen have only said that he has promised to
complete that contract.
The agency has been frustrated by its inability to persuade Congress to pass
legislation giving it more flexibility in setting rates and changing
services. The board might look to replace Henderson with a retired member of
Congress to enhance the chances of getting such legislation approved.
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AP ONLINE, 09th January 2001