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Royal Mail is planning to charge businesses more to deliver post in London than in other parts of the country.
According to proposals submitted to industry regulator Postcomm, business mail, including bulk deliveries such as bills, statements, and mailshots, will attract a surcharge if delivered to London and low-density rural areas.
The plans have caused surprise at Postcomm and angered business users because it was assumed delivery to urban centres would be cheaper than to rural areas, where costs were higher.
However, in its application for the introduction of ‘zonal pricing’ on business post, Royal Mail, led by chief executive Adam Crozier, indicates that it wishes to make a surcharge of 2.5 per cent over current prices for delivery in London and 4.8 per cent for ‘low-density’ rural areas. It claims the move will reflect the higher costs of delivery to these areas. Factors including ‘London weighting’ and congestion charging are behind the increases in the capital.
In ‘high-density’ areas other than London, Royal Mail is planning price cuts between 4.9 per cent and 1.7 per cent.
Postcomm is expected to launch a nine-month consultation on the proposals this week, and will examine Royal Mail’s claims regarding London closely.
Businesses and competitors are highly critical of Royal Mail’s plans, fearing the rise in London will significantly increase their bills and that price reductions elsewhere will undercut potential rivals.
Read MoreDHL Express logistics and transport services provider has chosen Lodz as the location for its next investment. The company will launch a call centre creating 400 jobs. Recruitment will commence soon. By the end of the year, DHL wants to employ 160 people. It is presently renting a 1,500 sq m office. The centre is to service the Polish market, with 70 percent of employees engaged in that activity. It has taken the firm 18 months to decide on the location for its investment; Wroclaw was also in the running. DHL had previously chosen Lodz as the site for a terminal worth EUR4.5m, servicing up to 22,000 packages per day. The terminal employs 64 people and 76 dispatch riders. The firm also has sorting stations near Poznan, in Zabrze and in Warsaw.
Read MoreUPN welcomes H & B Logistics to the Network covering the M, SK, OL and BL postcodes.
H & B Logistics was established in 1989 and relocated in 1995 to a 15,000 sq ft distribution centre based in Denton,
Manchester to provide a faster and more efficient service for its customers. The company has a fleet of vehicles ranging from 17 tons vehicles, 7.5 tons vehicles, 35CWT vehicles, tractor units, double deck trailers and single deck trailers.
Since joining UPN, they have already begun to see the benefits of membership with a 20 pct growth in business so far.
H & B Logistics chose to join the UPN network in order to develop their distribution centre further and to provide a valuable extra service to its existing customers by being part of a leading pallet distribution network.
Read MoreWeighty solution for Palletforce
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