Year: 2005

Royal Mail can deliver a boost for home shopping

Home shopping companies should do well out of changes to the Royal Mail’s structure because it will lower the cost of posting catalogues, says broker Numis, which has given its stamp of approval to Findel and N Brown. Under the new tariff system, which comes into effect in September next year, it is expected that posting smaller, heavier items will be cheaper while mailing costs for large but light items will rise. Although the cost of sending out orders to customers is not expected to change significantly, Numis says the lower cost of sending out catalogues that should result from the changes is a boon for home shopping companies.

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New DHL International Trade Centre helps US customers go global

www.dhl-usa.com/international includes up-to-date information on customs rules and regulations, online applications to facilitate international trade, and
Additional features of the DHL International Trade Centre include:
• Trade Automation Services (TAS) – offers customs and trade information to assist customers with the preparation and management of international shipments, including an extensive library of customs and trade documentation for over 45 countries, an interactive search of product classification codes, and a glossary of international trade terms.
• Import Express Product Information – features information about DHL Import Express, an all-inclusive, door-to-door service for expediting imports to the United States and between third countries.
• International Product Information – provides information about trade-lane specific DHL services and solutions specifically designed for customers importing high volumes from major US trading partners such as China and Mexico; covers DHL’s suite of international shipping services, including DHL Same Day Service, DHL Worldwide Priority Express, and DHL International Document Service.
The International Trade Centre is the newest enhancement to DHL’s US website, launched in May as a result of extensive research into the needs, priorities and preferences of domestic and international online shippers. The new DHL-USA.com site also features the DHL Small Business Resource Centre, an online resource for small businesses to gather peer-to-peer knowledge, as well as access specialized content, reference guides and special offers from DHL.

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How thick? How heavy? What size?

Postwatch, the watchdog for postal services, welcomes the year’s notice that customers have been given of the fundamental change in the way Royal Mail postage will be priced. Postwatch and a cross section of British businesses, particularly direct marketers, campaigned for 12-months notice and acknowledge the postal regulator, Postcomm, has listened to their concerns. As widely expected Postcomm is allowing Royal Mail to change its pricing structure. Instead of price being determined by just the weight of the item, from September 2006 postage will depend on size, thickness and weight.

Peter Carr, Chairman of Postwatch, commenting on Postcomm’s announcement said: “It was essential customers be given 12-months notice of this important change in the way postage is priced. Even in the 21st century post remains one of the essential services and everybody will be affected by Postcomm’s decision.

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Spanish Post Office approves modernisation plan

Correos, the Spanish post office, has approved a plan to modernise its sorting offices via the acquisition of new equipment. The company’s objective is to improve working conditions for employees, who number almost 30,000, as well as unifying its company image and improving service quality. Correos operates 1,800 sorting offices.

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Swiss Post letter monopoly could go

A report commissioned by the Swiss communications ministry says a partial liberalisation of letter delivery services would not threaten the country’s mail service. If the government gives the go-ahead, Swiss Post could see its monopoly on letters limited to those weighing less than 100 grams – a move opposed by unions. The independent study, released on Thursday, comes ahead of a government debate on the issue next month. Swiss Post currently holds a monopoly on all letters delivered in Switzerland. Only letters headed abroad or for which the transport costs more than SFr5 (USD3.9) can be delivered by other companies. Under the report’s proposals, this monopoly would be curtailed to letters under 100 grams. The measures would apply to one in every ten letters, or 17 per cent of Swiss Post’s revenue from mail deliveries.

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UK cost of postage to be based on size and shape of mail

The cost of sending letters and parcels will be determined by the size and shape of an item as well as its weight, according to plans approved by the postal regulator Postcomm yesterday. The new pricing structure will increase the cost of sending lightweight but bulky items, such as photographic film, video tapes and large greeting cards, but will cut the postage on some heavier items, such as catalogues and books. The cost of sending a 480g box of chocolates, for example, will decrease from Pounds 1.78 to Pounds 1.59. But the charge for a 30cm by 38cm poster in a 300g cardboard tube will rise from Pounds 1.07 to Pounds 1.59. The system will be introduced in September 2006, following a multimillion pound marketing campaign, but will be revenue-neutral for Royal Mail. The national operator has been pushing for changes to make postal charges fairer and more reflective of the true cost of delivery to help it compete once the postal market opens to full competition next January. Lorna Clarkson, Royal Mail’s director of commercial policy and pricing, said: “This is a small but very welcome step in that direction.”

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Post Danmark recorded a profit after tax of DKK 539 million in the first half of 2005

Post Danmark recorded a profit after tax of DKK 539 million in the first half of 2005. This was a DKK 13 million higher profit than in the first half of 2004. Profit before tax was DKK 758 million against DKK 760 million in the first half of 2004. This is a satisfactory result in consideration of the fact that it was achieved in a period with declining letter volumes and stagnant revenue from letters, says Helge Israelsen, CEO of Post Danmark.

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Postcomm allows UK Royal Mail to price post by size as well as weight

Postcomm has today given Royal Mail the all-clear to charge postage according to the size of a letter or packet as well as its weight.

Royal Mail’s new Pricing in Proportion (PiP) price structure will be the greatest change in postal pricing since the introduction of the Penny Black. It will come into operation, at the earliest, in August 2006. Its introduction will mean some post will cost less to send than it does now but light-weight items that are also large or bulky will cost more.

Today’s announcement follows two years of extensive consultation by Postcomm and reflects substantially revised proposals from Royal Mail. In its most recent consultation, Postcomm proposed to allow Royal Mail to introduce the new charges from next April. After analysis of responses, this has been put back to August next year to allow postal users at least 12 months to prepare.

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