The week that was: 12 November 2010
USPS results reveal huge loss, TNT increases security after bomb scare, and UK Post Office blueprint unveiled… Good afternoon from Post&Parcel Towers in the UK, where the rain is falling, darkness is descending and the temperature is plummeting. So why not let us bring a little sunshine into your lives with an intriguing news update. Here we go…
It is not the best of starts to the weekend for USPS, as the company reported a net loss of $8.5bn for 2010. This represents a further loss of $4.7bn on top of the 2009’s net loss of $3.8bn. The company posted operating revenue of $67.1bn; and operating expenses of $70bn – claiming the negative result was due to revenue decline and additional expenses in 2010 associated with Retiree Health Benefit pre-funding and workers’ compensation. A company statement said: “The recent recession, continuing economic pressures and migration of mail to electronic media had a significant adverse impact on mail volumes and operating revenues. Despite rigorous initiatives that eliminated 75m work hours and drove productivity to record highs in 2010, the losses mounted.” Commenting on the results, chief financial officer, Joe Corbett, said: “Over the last two years, the Postal Service realised more than $9bn in cost savings, primarily by eliminating about 105,000 full-time equivalent positions – more than any other organisation, anywhere. We will continue our relentless efforts to innovate and improve efficiency. However, the need for changes to legislation, regulations and labour contracts has never been more obvious.” Total mail volume in the United States stood at 170.6bn pieces, compared to 176.7bn pieces in 2009, a decline of 3.5%.
Over to Europe now, and TNT Express announced it is implementing a series of additional security measures against the threat of bomb-parcels. This follows the discovery of several explosive packages last month, destined for Chicago. The packages originated from Yemen. The following week, the Greek government put in place a 48-hour international airmail embargo after packages containing explosives – reportedly carried by UPS and TNT – were sent to targets across Greece and Europe. Now TNT has reinforced air and ground security controls, including the screening of consignments, in all countries where it operates. Marie-Christine Lombard, group managing director Express, said: “TNT Express is committed to strengthening transportation security worldwide. Together with security officials, customers and the industry, we are determined to enforce all reasonable measures to allow the safe transport of world trade.” The reinforcement covers TNT’s own operations, but also that of its associates, subcontractors, and partner airlines involved in the transportation of TNT shipments.
In the UK, the government revealed plans this week to introduce governmental and extended financial services to the Post Office network. Last month, the government announced a £1.34bn funding package over the next four years to maintain and modernise the Post Office network. Under the blueprint, the Department for Business, Innovation & Skills (BIS) said the Post Office can become “a genuine front office for government at both the national and local level”. Pilots under consideration include Post Offices verifying supporting documents for customers of the Pension Service; the network to provide print on demand government forms; and the organisation to explore whether it can play a role in supporting Jobcentre Plus in the National Insurance Number application process. In terms of banking, the Government has said it hopes that all UK current accounts will eventually be accessible through the network and said it welcomes the new agreement between RBS and Post Office Ltd to provide access to current and business accounts through post offices. Responding to the news, minister for postal affairs Edward Davey said: “We’re determined to turn the Post Office network around and end the years of decline. The Post Office is a tremendous national asset. It will not be for sale and there will be no programme of closures.” Paula Vennells, managing director of Post Office Ltd, said: “We warmly welcome the government’s significant level of support and commitment, which will allow us to invest in the network and in our service to customers, and help us develop new business.”
And finally…
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