Author: Archive

Post-Switch – Royal Mail most inefficient operator in Europe

Posted by | Oct 23, 2008 | |

Post-Switch says that Royal Mail has failed to react to the commercial world, describing it as one of the most inefficient operators in Europe.
Jonathan DeCarteret, Senior Market Analyst at Post-Switch, says that Royal Mail, under threat from competition, a ballooning pension deficit, shackled to a trade union and a conspicuous lack of innovation has put the USO (universal service obligation) in financial deficit and under threat.

“Royal Mail is one of the most inefficient operators in Europe and there is an urgent need to modernise, streamline, cut costs and compete on customer service. There is a general consensus that Royal Mail has failed to shake off a culture of complacency that reigned under monopoly protection and there is a real need for a culture of change that is about customer obsession and innovation. Royal Mail need the commercial talent to create new revenue streams and take advantage of a liberalised European postal market.” he said.

His remarks follow the announcement by Royal Mail this week that the pension deficit has grown and the universal service is now seriously in the red. The Hooper review, to be released imminently, is expected to recommend a radical shake-up of the Royal Mail, including part privatisation of the delivery network.

In a closed door speech on the Independent Review of the Postal Services Sector, Richard Hooper stated that “The situation in the postal services sector in the UK is and remains untenable”.

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Royal Mail: Half year trading statement 2008-09 (UK)

Posted by | Oct 23, 2008 | |

Royal Mail Group’s operating profit more than doubled from GBP 86 million to GBP 177 million in the first half of the 2008-09 financial year compared to the same period the previous year despite a further fall in mail volumes, the company announced today.

The strong financial performance came alongside a rise in customer quality of service with the most recent figures showing the vast bulk of mail hitting or exceeding its targets.

Operating profit grew by GBP 91 million in the first half of the year compared to the same period last year. The company’s continued focus on reducing overheads as competitive and economic pressures mount played a significant role in the financial uplift with reductions in IT and other costs in the Post Office network and efficiency gains in the Royal Mail Letters business.

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GLS Austria claims "Express-Parcel" is 100 pct on-time

Posted by | Oct 23, 2008 | |

GLS Austria said it has recorded a continuously growing demand for its “Express-Parcel” service introduced in February this year and is achieving 100 pct on-time delivery within the defined time-frame.

Nine months after the introduction of the service, the shipment volumes are steadily growing at double-digit rates, the company said in a statement. Next-day delivery by 17:00 is the standard option of the express service. Similar to basic parcel delivery, Express-Parcel can be combined with various additional services such as complementary insurance as well as time-definite and Saturday deliveries.

The special feature of the Austrian express product is its integration in the company’s parcel system.

According to GLS Austria, the 12:00 delivery is the most popular service option accounting for about 40 pct of all GLS express shipments nationwide.

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DHL ends service to Associated Mail & Parcel Centers

Posted by | Oct 23, 2008 | |

According to parcel industry sources, the Associated Mail & Parcel Centers has informed its centers that DHL will cease all domestic air and ground service to that organization within 90 days. DHL International shipments through Mail & Parcel Center Channels will continue without any changes to that service.

AMPC officials informed their centers that DHL marketing officials had informed them of the change via a phone conversation late last week. The AMPC notice stated that DHL indicated that written notice would be sent to all AMPC outlets shortly.

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Business Post grabs Amtrak contracts

Posted by | Oct 22, 2008 | |

Business Post chief executive Guy Buswell has revealed that its UK Mail division has picked up contracts following the demise of business-to-consumer parcel carrier Amtrak in the summer. “We got in touch with Amtrak’s administrators and offered to move the stranded parcels in the network,” says Buswell.
“We then agreed sight of the customer database, which gave us a jump-start on the competition. We did not buy any Amtrak assets – just its customer list.” Buswell says although UK Mail picked up business as a result of this move, other carriers, such as Parcelforce and DHL, also gained customers.
Parcelforce confirmed it has picked up a Kleeneze contract. DHL declined to comment. Meanwhile, Buswell says a name change is in the offing. “We’ve been thinking about changing the group name to UK Mail Group. We’ll probably decide on it in the new year, then go to shareholders next summer to be voted on at our AGM,” he adds.

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Swiss Post: Postal legislation – Improvements needed

Posted by | Oct 22, 2008 | |

The parameters decided by the Federal Council for the new postal legislation must be improved. Swiss Post needs more entrepreneurial scope to provide a high-quality basic service in the future and to succeed against growing competition from international contenders in the free market. In setting political requirements it is thus calling for a more restrictive stance. Swiss Post is unable to understand why the Federal Council has not proposed a constructive solution for the further development of PostFinance. This is a missed opportunity not only for a successful Swiss Post Group but also for Switzerland’s economy as a whole.
Swiss Post wants to provide a high-quality basic service in the free market too, as decided by the Federal Council. However, it will only be able to do this in the long term if the parameters are right. Under free competition, Swiss Post needs more flexible legal operating conditions so that it can act in an entrepreneurial way in the dynamic logistics and financial services markets. An open company purpose is crucial for this.

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IRS withdraws tentative assessment from FedEx

Posted by | Oct 22, 2008 | |

On October 22, 2008, the Internal Revenue Service (“IRS”) withdrew its tentative assessment of tax and penalties for the 2002 calendar year (USD 319 million plus interest) against FedEx Ground Package System, Inc. (“FedEx Ground”), a wholly owned subsidiary of FedEx Corporation, relating to the classification of FedEx Ground’s owner-operators for federal employment tax purposes. The IRS is continuing its employment tax audit of FedEx Ground for the 2002 calendar year. We are engaged in discussions with the IRS audit team regarding this matter. We continue to believe that FedEx Ground’s owner-operators are independent contractors and that no loss is probable in this matter.

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USPS adds Express Mail hold for Pickup to usps.com (U.S)

Posted by | Oct 22, 2008 | |

Express Mail packages can be held at Post Offices for pickup, giving customers both the peace of mind of secure delivery and the convenience of picking up their packages when it best fits their schedules. And now, customers can choose Express Mail Hold For Pickup service through Click-N-Ship on usps.com.
Hold For Pickup, previously available for Express Mail purchased at Post Offices and at Automated Postal Centers (APCs), is now also available for online shippers. A Hold For Pickup package is shipped directly to a Post Office, instead of being left at the recipient’s address. The package is then held at the Post Office until picked up anytime during office hours, at the time most convenient for the recipient.
The sender selects Hold For Pickup when preparing an Express Mail shipment through Click-N-Ship, and identifies which of the 31,000 participating Post Offices nationwide should receive and hold the package for the recipient.

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