Tag: North America

USPS Postmaster General eyes Web as competition

Posted by | May 19, 2008 | |

The passage of the Postal Accountability and Enhancement Act of 2006 and the downturn of the economy have resulted in a year of transition for the US Postal Service, said Postmaster General Jack Potter in his keynote address today at the National Postal Forum in Anaheim, CA. As a result of the new law, the USPS has implemented new pricing regulations and is also working on new service standards, Potters said.

“We’re in competition with the Internet,” Potter said more than once during his speech. In order to better compete, more value needs to be added to the mail, he said. At the same time, it’s “imperative” to keep prices down, Potter said.

One way to add that value is by using the Intelligent Mail barcode (IMB), which encodes routing and tracking information on mail, Potter said. Within the last year, the USPS has been seeking and responding to public feedback regarding the implementation of the IMB, he said. Overall, mailers understand the benefit of the barcode, which will save them money and decrease the amount of undeliverable as addressed mail, he added.

The upcoming deployment of Flats Sequencing System (FSS) machines will provide a faster and more efficient way to sort flat mail, which includes magazines and catalogs, Potters said. The new machines will save mailers money and help eliminate the “labor intensive” practice of manually sorting flat mail. The first FSS machine is already up and running in Dulles, Virginia, he said.

In light of pending do-not-mail legislation in states across the US, Potter also stressed the importance of addressing customers’ environmental concerns about the mail. There needs to be more discussion of the benefits of having something delivered versus driving around from store to store, he said. At the same time, mailers need to be smarter about what and how frequently they mail to their customers, he added. “Going green makes sense,” he said.

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Pitney Bowes New VariSort(TM) Mixed Mail Sorter Helps Mailers Achieve Greater Postal Discounts

Posted by | May 19, 2008 | |

Pitney Bowes Inc announced the introduction of the new Pitney Bowes VariSort(TM) Mixed Mail Sorter, a flexible sorting solution that helps mailers, mail consolidators and private posts automatically process all types of mail–even difficult-to-process materials–to maximize postal discounts.

The VariSort(TM) solution is the latest in the growing family of sorting solutions from Pitney Bowes. It automates the presorting of all types of mail pieces including clean or complex flats, hard-to-process materials including polywrap, bound printed matter, padded envelopes, small parcels and even irregular-shaped pieces. Automating more types of mail allows mailers to realize increased USPS(R) workshare discounts for presorting flats, while mail consolidators and private posts can offer expanded services to their customers.

The VariSort(TM) solution is designed to automate scanning, weighing, labeling and sorting of mixed mail pieces at speeds up to 8,000 pieces per hour to provide mailers with improved accuracy, increased productivity, greater integrity, and reduced labor costs, while they realize postal discounts.

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Deutsche Post seeks tie-up in U.S. for Express

Posted by | May 18, 2008 | |

Deutsche Post AG. is seeking to solve problems at its loss-making Express business in the United States by forming a cooperation with a partner in that country, with Fedex Corp and the U.S. Postal Service as likely candidates, Euro am Sonntag reported, citing sources.

It said Deutsche Post has ruled out United Parcel Service Inc as a potential partner.

If Deutsche Post does not find an appropriate partner, it would let its DHL Express unit operate key hubs in the United States and then work with regional-based companies to deliver the parcels, the report said.

Deutsche Post chief executive Frank Appel told the AGM on May 6 that a complete exit from the U.S. market is not an option for the company.

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ABX to renew with DHL

Posted by | May 18, 2008 | |

ABX Air will renew its hub and line haul services agreement with DHL.

The contract has an automatic one year renewal clause set for Aug. 15 if neither party cancels at least 90 days before the anniversary date. ABX Air, a subsidiary of the recently renamed Air Transport Services Group, provides sorting, maintenance, and other logistics services in support of DHL’s express package network in the United States, including management of DHL’s national sorting center in Wilmington, Ohio, and 15 of its regional sorting centers across the country.

ABX Air earns base markup revenues equal to 1.75 percent of eligible expenses it incurs under the agreement, and can earn additional markup revenue based on its performance against certain cost and service goals. In 2007, ABX Air’s revenues were $317 million, and its pretax earnings were USD 7.6 million, from services provided under this agreement.

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FedEx Chief confident on US exports

Posted by | May 18, 2008 | |

Fred Smith, founder and Chief Executive of package-delivery pioneer FedEx, said growing demand from developing countries for high-technology and other valuable goods would assure continued growth in US exports even if the dollar’s slide reversed.

Economists from Goldman Sachs and Citigroup have predicted that the narrowing trade deficit could add one-half of a percentage point to the US’s gross domestic product in the first quarter.

While the dollar’s decline has helped make US goods more attractive to overseas businesses and consumers, it will not be the primary driver of a sustained growth in exports for high-value products, Mr Smith said.

The burgeoning wealth of emerging economies has spurred demand for many high-end goods made in the US, from network routers to artificial knees and hips.

The advent of electronic commerce has eliminated language barriers and other traditional impediments to international trade, he said.

FedEx warned investors this month that the run-up in fuel costs would leave the company short over its quarterly profit forecast.

While FedEx can pass price increases to customers by increasing its fuel surcharges, the higher fees do not kick in immediately. “We can’t pass it along fast enough to recover it,” said Mr Smith.

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