Tag: Mail Services

Postcomm consults on license for Document Outsourcing Limited

Posted by | Feb 4, 2008 | |

Postcomm today began a 30-day consultation on the proposed grant of a postal operator’s licence to Document Outsourcing Limited.

Under the licensing framework that took effect from 1 January 2006, and was amended in January 2008, the licence would:

– allow Document Outsourcing Limited to provide all types of postal service;
– be issued for a rolling ten year period; and
– require the company to comply with codes of practice on mail integrity (safety and security of the mail) and common operational procedures (designed to ensure the multi-operator market works well in practice).
– The consultation notice and proposed licence can be found on the Document Outsourcing Limited consultation page.

Postcomm is minded to, subject to consultation, to grant a licence to Document Outsourcing Limited. Postcomm believes that the proposed licence will further the interests of postal users by promoting competition between postal operators, and that it will have no adverse effect on the provision of a universal postal service in the United Kingdom.

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FedEx + DHL Isn't Necessarily Bad for UPS

Posted by | Feb 4, 2008 | |

Rumors have been flying that DHL’s United States operations are up for sale. With the recent announcement that Deutsche Post’s DHL business unit lost 600 million Euros (USD 879 million) last year, the company is seeking strategic alternatives.

The leading candidate to purchase DHL is thought to be FedEx. While some may think that a FedEx acquisition of DHL could spell trouble for UPS, the new FedEx/DHL could actually provide some much-needed relief for both of these transportation companies.

Airborne no more

DHL hasn’t been a player in the American express delivery business for very long (that is, if it ever really was one). Deutsche Post’s DHL Worldwide Express purchased express carrier Airborne Inc. for USD 1.12 billion in 2003. Airborne Express was the low-cost carrier in the express shipping marketplace, often undercutting FedEx and UPS prices without the service guarantees that the bigger shippers provide.

DHL decided to rebrand the Airborne operations using the DHL name while keeping the low-price shipping position. DHL also scrapped the previous Airborne logo and colors, moving to bright yellow trucks and uniforms that couldn’t be missed even in one of those blinding snowstorms hitting the West Coast lately.

Considering that Deutsche Post paid USD 1.12 billion for an investment in the U.S. express shipping marketplace, last year’s loss of USD 879 million is significant, and it wouldn’t be surprising if they were looking to offload the U.S. DHL operations ASAP. But what does this say for the marketplace if the “low-price carrier” can’t compete in an economy that continues to echo “recession?” Wouldn’t you think that consumers would be looking to cut costs wherever possible in this economic climate?

The price is right

The answer may lie in the fourth-quarter earnings report that UPS delivered last week. Beyond the losses that it took because of pension write-offs, UPS stated that revenue per piece was up 2.3pct on “firm” pricing. UPS’ 2007 increase in list rates was 4.9pct (not including the additional increases in individual surcharge amounts), so growth in discounts given to corporate and individual customers must have made up the difference between increase in base shipping rates and realized revenue per package (assuming that weight per package stayed the same).

As background, to keep up in a competitive transportation marketplace, UPS, FedEx, and DHL give special incentive pricing programs to key clients. Actually, everyone seems to qualify as a “key” client today, and customers can gain discounts for simple tasks like using FedEx Ship Manager or by belonging to an organization such as the American Institute of Chemical Engineers.

So, even though UPS raised base rates by 4.9pct in 2007, they gave clients increased discounts such that the average actual rate increases only came out to 2.3pct. UPS and FedEx price competition means trouble for DHL since low-price is DHL’s key claim to fame. Combine this with a recent USPS advertising campaign touting no surcharges and low rates, and it’s easy to see how DHL could run into serious issues.

Yellow and blue make green

If FedEx does buy DHL’s U.S. operations, it wouldn’t be to boost its express or ground network. After all, those gaudy bright yellow trucks and planes aren’t necessarily an asset to anyone. No, FedEx’s potential purchase of DHL would be an easy way to stave off price pressures in a competitive shipping marketplace. In effect, FedEx would be taking one for the team: getting rid of the public competitor who fought on price alone.

That’s not to say that FedEx is going to buy DHL, or that the government would OK such a move. But if the yellow DHL trucks were to move on, that could mean green for both FedEx and those brown guys at UPS.

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Emirates Post records net profit of Dhs 190m for 2007

Posted by | Feb 4, 2008 | |

Announcing the financial results, H.E. Sultan Saeed Al Mansouri, Minister for Public Sector Development and Chairman of Emirates Post Holding Group, said the net profit of Dhs 190,258,653 (USD 51.74 million approx.) reflected Emirates Post Holding Group’s continuing pursuit of business diversification and excellence in delivery of services.

Mr. Abdulla Al Daboos, President of Emirates Post Holding Group, said the establishment of the holding company under Federal Law No. 14, 2007 issued by HH Sheikh Khalifa bin Zayed approved, has set the foundation for evolving into a major business entity under the Ministry of Public Sector Development. Emirates Post, the postal corporation, has thus become one of the subsidiaries of the holding group.

He said the highest ever net profit of over Dhs190m was the result of a strategic plan that was driven by diversification, new alliances and acquisitions.

Mr. Al Daboos revealed that the postal network continued to expand during 2007, and a large number of new services were added to the Emirates Post portfolio. Overall, mail and parcel volumes rose by 10 pct. Overall mail volumes in 2007 stood at 258,808,231, against 233,767,518 in 2006, with a daily average of 715,545 pieces per day.

Commenting on expansion plans, Mr. Al Daboos said over Dhs. 277 million (USD 75.4 million) has been allocated for construction projects in 2008. Among the projects already nearing completion is a new purpose-built postal operations hub at Ramoul.

The Board also approved Emirates Post Holding Group plan to launch postal business centres across the UAE and GCC in the next phase, in partnership with leading business groups.

A new addressing systems being developed in association with other departments was also approved. The Board also reviewed plans for the IPO. It also approved new employee rules for holding group.

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High speed French mail train gathers pace

Posted by | Feb 4, 2008 | |

Mail and other goods could soon find their way on to the high speed rail network in France.

Fret DV is a venture aimed at establishing a high speed rail freight operation in France. The company was formed in 2006 between SNCF and La Poste, the French postal service. Already, trains operate between Paris, Mâcon and Cavaillon and Fret DV is now considering expanding operations to take in Rennes and Bordeaux. Other possible destinations include Toulouse, Strasbourg, and Lille.

The high speed service could benefit rival postal operators as the final phase of mail deregulation draws closer. The UK withdrew its mail train but reinstated part of its rail operations in more recent years. Increased road fuel costs have begun to make high speed trains a viable way to transport mail and goods.

Fret GV could be moving 150,oo tonnes of high vale freight by 2009, ahead of the final phase of postal liberalisation although for now, lorries still provide the cheapest way to transport goods.

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UNITED STATES: Domain Name in the Works for Post Office

Posted by | Feb 4, 2008 | |

A new “dot-post” Internet address in the works aims to set apart the electronic services increasingly offered by postal agencies around the world.

Backers say restricting the “.post” domain name to postal agencies or groups that provide postal services would instill trust in Web sites using such names. By contrast, popular suffixes such as “.com” and “.org” are assigned on a first-come, first-served basis.

The Internet’s key oversight agency, the Internet Corporation for Assigned Names and Numbers, is trying to work out contract terms for the suffix with the U.N. Universal Postal Union. Approval could come as early as mid-February and implementation several months later.

“Dot-post is an extension of the innovation currently happening in the postal agencies,” said Paul Donohoe, the postal union””s eBusiness manager. “They are investigating services that are looking for alternative ways to add value to communications.”

Services unveiled or proposed around the world include electronic postmarks, online billing and payments and hybrid mail — when a digital document gets printed by the postal service and delivered as paper, or when physical mail gets scanned into an electronic document for delivery.

If the suffix is approved, the U.N. postal agency would assign domain names under it to individual national agencies, which could then distribute sub-domains to contractors and other service providers.

The U.N. agency also could assign names directly to mail-related industries, such as direct marketing and stamp collecting.

The postal union proposed “.post” in March 2004. ICANN gave it a tentative OK that October, but Donohoe said final approval has been delayed partly because of the structure of the U.N. agency — one requiring unique contract terms.

ICANN has said it may start a new round of applications later this year.

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