Author: Archive

UK mail volume figures continue to decline

Posted by | Mar 28, 2008 | |

According to the latest figures, this is the third consecutive year of mail volume decline in the UK and is contributing to Royal Mail’s shrinkage.

According to Royal Mail, 5.03 billion items of direct mail were sent in the UK in 2006, a decline of 2.1pct in volume on the previous year. The UK addressed mail market was worth around GBP 6.8 billion in 2006/07. Mail volumes amounted to 21.9 billion items, down 2pct on the previous year. These figures included downstream access, all regulated and non-regulated mail, but excludes door-to-door and international.

Transactional mail volume estimates range anywhere from 6bn to 10bn items per year, this volume is estimated to be declining by around 2-3pct per year. This is due largely to businesses encouraging their customers to move physical bills and statements online.

In 2006/07, mail carried via access arrangements (both operator and customer direct access) accounted for 11.8pct of total mail volumes. This is an increase from 5.6pct in 2005/06.

Royal Mail’s financial performance for the year ended 25 March 2007 was weaker than in the previous year with operating profits (before exceptional items) for Royal Mail Letters’ business falling from GBP 344m to GBP 194m, caused by increasing costs, falling mail volumes and constant revenue. For the licensed area, Royal Mail recorded operating losses of GBP 29m in 2006/07 compared with profits of GBP 168m in 2005/066.

The USO remained profitable overall though less so than the previous year (operating profit was GBP 27 million compared with GBP 54 million in 2005/06) with profits from non-licensed mail weighing over 350g continuing to offset losses on licensed mail weighing 0-350g.

Postcomm has warned Royal Mail that it’s slow reaction to competition and lack of innovative ideas for the growth in the internet and ecommerce could be damaging.

Read More

EU's McCreevy complains to France, Germany, 6 other states over postal services

Posted by | Mar 27, 2008 | |

EU internal market commissioner Charlie McCreevy has complained to France, Germany and six other member states over lack of competition in their postal services markets, his spokesman said.

The other countries are Austria, Belgium, Finland, the Netherlands, Poland and Slovakia, the spokesman said.

‘The commissioner sent a letter to all 27 member states on postal services,’ he said, adding that McCreevy singled out eight countries for criticism.

EU countries have to implement the European Commission’s liberalisation measures by Dec 31, 2010.

The spokesman confirmed that Dutch group TNT NV has filed a formal complaint with the commission against minimum wages in the German postal industry.

The commission is concerned about the minimum wages and a VAT exemption enjoyed by German mail incumbent Deutsche Post World Net AG.

The German government last autumn decided to make minimum wages paid at Deutsche Post mandatory for the whole industry.

TNT claims that the German government is violating EU regulations that ensure free and fair competition among EU members operating across borders.

Read More

UPS deploys 167

Posted by | Mar 27, 2008 | |

UPS today announced the deployment of 167 Compressed Natural Gas (CNG) delivery vehicles in Texas, Georgia and California. The CNG vehicles, part of UPS’s global alternative fuel fleet, will help reduce the company’s carbon footprint and its dependence on fossil fuels.

Of the 167 new CNG trucks, 25 have been deployed in Dallas; 42 in Atlanta, and the remaining 100 in five California cities: 30 to Sacramento, 14 to Los Angeles, five to Ontario, 10 to San Ramon and 41 to Fresno. They join more than 800 CNG vehicles already in use by UPS in the United States. Previous CNG vehicles in UPS’s fleet were converted from gasoline and diesel vehicles in the 1980s to run on alternative fuels. The new vehicles are originally manufactured for alternative fuel use.

“UPS has deployed alternative fuel vehicles for more than 70 years and this CNG deployment is one more step towards the ‘greening’ of the UPS fleet,” said Robert Hall, UPS’s director of vehicle engineering. “Continuing to add CNG delivery trucks to our fleet is a sustainable choice because natural gas is a cost effective, clean-burning and readily available fuel.”

The CNG truck bodies are identical externally to the signature-brown trucks that now comprise the UPS fleet although they will be marked as CNG vehicles. The trucks are expected to reduce emissions by 20 percent and improve fuel economy by 10 percent compared to the cleanest diesel engines available today.

UPS operates the transportation industry’s largest private fleet of alternative fuel vehicles. This deployment brings the UPS “green fleet” total to 1,629 trucks. UPS has deployed CNG, LNG (Liquefied Natural Gas), propane, electric and hybrid electric vehicles in the United States, Canada, Mexico, Germany, France, Brazil and the United Kingdom. The company also is working with the Environmental Protection Agency on a hydraulic hybrid delivery vehicle.

UPS began deploying alternative fuel vehicles in the 1930s with a fleet of electric trucks that operated in New York City. The company’s “green fleet” has traveled 143 million miles since 2000.

“Deploying eco-friendly delivery vehicles is one of the many ways UPS demonstrates its commitment to sustainable business practices,” added Hall. “The company plans to continue to expand its ‘green fleet’ and to focus deployments in areas with air quality challenges.”

Read More

Postcomm: Royal Mail must transform for a healthier mail market (UK)

Posted by | Mar 27, 2008 | |

Postcomm has argued that fundamental reforms are essential if Royal Mail is to have a long-term sustainable future and the needs of all users of mail are to be met.

In its first submission to the independent panel reviewing the postal services market, Postcomm has highlighted the positive impact for customers since the addressed letters market was opened fully to competition over two years ago:
* Larger customers have enjoyed lower prices and increased innovation;
* Residential mail users have experienced record levels of service quality from Royal Mail; and
* Smaller businesses and public sector customers are also now beginning to reap the benefits of choice.

During this period, there have also been significant structural changes in the mail market that are directly linked to advances in technology and the increasing use of alternative forms of communication such as email and the internet. These changes pose challenges but they also create new opportunities. Royal Mail’s performance in rising to meet these new challenges has been disappointing.

Royal Mail continues to lag significantly in terms of investment, efficiency and substantial product innovation. Their recent focus has been on forestalling new entrants to the mail market and far less on adapting to these more far-reaching structural changes. This situation is unsustainable and unless addressed will result in accelerating decline.

Postcomm believes the future health of Royal Mail, the universal service, and the addressed letters market as a whole are inextricably linked. Decisions about fundamental reform have to be taken swiftly if Royal Mail is to lead a healthier mail market and provide a strong universal service.

Read More

Decision on Four Post Office Branches

Posted by | Mar 27, 2008 | |

Post Office Ltd announced decisions on the future of four Post Office branches in the Network Change programme for Greater Glasgow, Central Scotland and Argyll & Bute.

The decision follows a six-week public consultation, which ended on 3 March, 2008.

The closures of Pollokshaws, 193 Shawbridge Street, Glasgow; University Stirling, The McRoberts Centre, University of Stirling; Clynder , Victoria Buildings, Helensburgh, and Westmuir Street, 8 Backcauseway, Glasgow, are confirmed today and they will close at the end of April at the earliest.

The four branches replaced four others which were originally proposed for closure as part of the Greater Glasgow, Central Scotland and Argyll & Bute Network Change Area Plan: Cultenhove in Stirling, Auchenback in Barrhead, and Kelvindale and Hyndland in Glasgow. They were withdrawn as a result of feedback received during consultation, which ended on 3 December 2007.

The four closures today means that a total of 44 branches will close under the Greater Glasgow, Central Scotland and Argyll & Bute Area Plan. Post Office services in the area will be provided through a network of 265 branches, including 3 outreach services through a mobile post office. This network supports the national accessibility criteria introduced by the UK Government and ensures that 99.9% of this area’s population will either see no change to their existing branch or will remain within one mile (by road distance) of an alternative branch.

Read More

Royal Mail to close final salary pension fund

Posted by | Mar 27, 2008 | |

The Royal Mail said on Thursday that it would close its final salary pension scheme to new members from the end of this month.

The Royal Mail’s pension scheme is the UK’s largest corporate pension scheme by membership, with 45,000 members. But longer life expectancy and a sharp rise in pension costs has forced the state-owned postal group, which lost its 350 year monopoly on postal services in 2006, to close the scheme.

The proposal to close the pension scheme, which has a 5 billion pound deficit, to new members was initially bitterly opposed by workers and prompted them to strike, but was subsequently agreed with unions as part of a wider agreement on pay and modernisation.

From April 1 the pension scheme will move to benefits based on the average earned by employees during their career, rather than their final salary.

Royal Mail will launch a new defined contribution salary scheme in April 2009.

Postal workers will continue to take their pension from the age of 60 until April 1, 2010 when the retirement age will rise to 65.

After that date it will be possible for postal workers to draw a pension at the age of 60 on benefits they accrued before April 1, 2010 while continuing to work until they reach the maximum level of benefits, Royal Mail said.

Read More

Kenya: GTV Clients to Pay by Post

Posted by | Mar 27, 2008 | |

The Postal Corporation of Kenya transfers on average Sh400 million a month through its electronic money transfer services.

Postmaster General Fred Odhiambo said the corporation earns a net commission of Sh34 million a month from the service launched in November 2006.

He said the corporation charges between Sh17 and Sh25 for every transfer.

“This is our fastest growing business stream that continues to attract respected and strong brands in the market,” Mr Odhiambo said Wednesday, after signing a subscription payment agreement with pay television service, GTV.

On the subscription deal, which started on a pilot basis in November last year, the Postmaster General said GTV customers who pay through the post office have reached 300.

“The numbers are growing fast and, to date, we have collected nearly Sh1.9 million on behalf of GTV,” said Mr Odhiambo.

Under the agreement, GTV subscribers will pay their subscriptions through the corporation’s 200 PostaPay money transfer service outlets at no extra charge.

GTV Kenya general manager, Kibutha Nduati, said the deal was formed due to the need to provide more payment points for their subscribers.

Mr Nduati said GTV, which launched the country mid last year, is set to unveil four new channels to bring its total channels to 20.

1 USD = 62.5100 KES

Read More

Polish postal workers ready to strike

Posted by | Mar 27, 2008 | |

Employees and management of the Polish Post meet tomorrow over a pay dispute, with a threat of a national strike hanging over the talks.

Post office employees want a 700-zloty gross pay hike. The management proposed 300 zloty.

The spokesperson for the Polish Post said that the company can offer no more for fear of losing liquidity.

On Friday, the parties will start negotiations with the help of a mediator. According to Radio Opole, if a compromise is not reached, almost 90 percent of employees are threatening to strike.

The Polish Post employs almost 100,000 workers, 70 percent of which, according to the data of the management, earn below 2,400 zloty gross (680 euro).

Read More

Advertisement

Advertisement

Advertisement

P&P Poll

Loading

How ready do you feel for the de minimis changes coming in July?

Thank you for voting
You have already voted on this poll!
Please select an option!




View ResultsHide Results

Post & Parcel Magazine


Post & Parcel Magazine is our print publication, released 3 times a year. Packed with original content and thought-provoking features, Post & Parcel Magazine is a must-read for those who want the inside track on the industry.

Subscribe to the Magazine

 

Pin It on Pinterest