Author: Archive

DMA (UK) slams Postcomm’s PIP ‘contradiction’

Posted by | Jul 22, 2005 | |

The DMA (UK) has attacked Postcomm’s handling of the pricing in proportion (PIP) issue, branding the decision that it is minded to accept the scheme a “contradiction in terms” which “smacks of legal nicety rather than correct consultation”. In its response to Postcomm’s consultation, released this week, the trade body expressed concern that the proposals will lead to direct mail budgets being slashed and moved to other channels. A DMA membership survey has exposed the fact that 78 per cent of members believe the industry should insist on 12 months to implement the scheme, while only 55 per cent have seen Royal Mail’s revised PIP proposals. Some 55 per say their businesses will be affected by the scheme.

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ASA dismisses TNT Express gripe

Posted by | Jul 22, 2005 | |

The Advertising Standards Authority (ASA) has thrown out a complaint lodged by TNT Express (UK) against Royal Mail’s Special Delivery service following a spat over whose premium service is the best. TNT Express complained to the advertising watchdog about a direct marketing campaign in which Royal Mail claimed its service was cheaper and better than its competitors. TNT Express complained that both mailings were misleading, because the methodology of the surveys was not made clear.

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UK price curbs ‘will stamp out 40,000 postal jobs’

Posted by | Jul 21, 2005 | |

Royal Mail today warned it will have to axe 40,000 jobs if the postal regulator goes ahead with its plan to impose price controls on stamps. In a report, chairman Allan Leighton told Trade and Industry Secretary Alan Johnson the proposed prices would result in “unrealistic” cost cutting and could only be achieved by massive job losses. Royal Mail bosses believe it is unfair for the regulator to bring its productivity rate in line with rivals Deutsche Post or TPG, as those postal companies have received more investment and are more mechanised than the British system. The job losses – representing nearly a quarter of Royal Mail’s workforce – would be more than the cuts of 34,000 made by Mr Leighton three years ago in order to return the group to productivity. Mr Leighton’s appeal to the Government comes at a time when ministers are planning a review of Royal Mail and as the organisation tries to raise more cash.

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UPS earnings climb 22% on global volume growth

Posted by | Jul 21, 2005 | |

UPS today reported a robust 22.2% gain in diluted earnings per share for the second quarter of 2005, driven by double-digit export volume gains in every international region and an increase of 387,000 packages per day in the United States. For the three months ended June 30 net income totaled USD986 million compared to the USD818 million reported for the period in 2004. Revenue of USD10.19 billion increased 14.9% from the USD8.87 billion reported last year, reflecting, in part, the acquisition of Menlo Worldwide Forwarding late last year. Consolidated average daily worldwide volume for the second quarter rose by 557,000 packages, or 4.1%, to 14.1 million. Worldwide average revenue per piece showed a strong 4.7% increase. “UPS is a company that’s on the move,” said Mike Eskew, UPS chairman and CEO. “Our U.S. domestic volume climbed well above our expectations. And the international segment’s performance was outstanding with export volume growth exceeding 18%.” Consolidated operating profit rose 18.2% to USD1.55 billion compared to USD1.31 billion for the prior-year period.

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Why can’t UK Royal Mail see the gold in D2D?

Posted by | Jul 21, 2005 | |

To casual observers there is a little bit of the Wild West about the UK door drop marketing sector. Its volumes are expanding, the market is (as yet) unregulated and the full potential of the sector is not fully tapped. As the last truly unfragmented media channel available to marketers, it seems there’s gold left in them there hills. Experts say the UK market, compared with its European cousins, is nowhere near saturation in terms of the number of items delivered per household. So are the key door drop distributors, Royal Mail and free newspapers, making hay while the sun shines? Not Royal Mail, if media buyers and door drop brokers are to be believed. Royal Mail’s self-imposed restrictions on its D2D service – long booking lead times, a solitary delivery per day and a limit on the number of items postmen will carry – are a particular bugbear of D2D brokers and their clients. Though free newspapers are a very viable alternative, speakers at last month’s DMA D2D conference chose to voice their frustration at Royal Mail.

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UK Amtrak’s GBP2.5m deal

Posted by | Jul 20, 2005 | |

Bristol delivery company Amtrak Express Parcels has won a GBP25 million contract from Warmley firm Kleeneze. The deal means that for the next five years Amtrak will deliver goods to Kleeneze customers the day after they are ordered. Amtrak believes the contract is the biggest next-day home delivery contract ever placed. The contract will see Amtrak deliver 9,000 parcels a night after collection from Kleeneze’s Bristol distribution centre.

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Greek govt plans stake sell-offs

Posted by | Jul 19, 2005 | |

Minister of Finance Giorgos Alogoskoufis said the government is planning to sell stakes in Agricultural Bank, Hellenic Telecommunications and Emporiki Bank, following the recent successful placement in lottery operator OPAP. The privatization of Postal Savings Banks will be delayed and is now expected to take place in the first half of 2006. It could involve a 25-30 pct stake, Alogoskoufis said.

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Couriers urge China Post to relax rules

Posted by | Jul 19, 2005 | |

The Conference of Asia Pacific Express Carriers, or CAPEC, an interest group representing the world’s top express courier firms in Asia, has asked China’s State Post Bureau (China Post) to further lower restrictions and interference in the mainland’s express mail service sector as the regulator is finalizing the amended rules. CAPEC, which represents DHL, FedEx Corp, United Parcel Service and TNT Express, has sent a statement urging China Post to set up a regulatory board separated from its business service department, reduce administrative interference in the industry and increase transparency. “As China is gradually opening its logistics and express market to foreign investors, no major foreign companies want to miss the opportunity to tap the emerging market,” an industry source said.

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