Tag: North America

US Postal Service can't account for millions

Posted by | Mar 26, 2008 | |

The U.S. Postal Service can’t account for at least USD 33.4 million in facilities-repair and vehicle expenses last year because of weak controls and lax oversight, two reports from the agency’s inspector general’s office said.

The Postal Service couldn’t assure that any of the USD 27.6 million in maintenance and repair expenses at facilities examined by auditors were used for that purpose, according to one of the reports posted on the agency’s Web site.

Some supervisors weren’t aware that they were responsible for overseeing expenses, that audit found. Other employees with limited knowledge of the repairs certified that they were properly done by contractors.

Without standard procedures, “the safety, security and serviceability of Postal Service facilities, employees and customers are at increased risk,” the March 3 report said. And without established controls over contractors, “there is an increased risk of fraud and abuse,” it said.

The audit covered facilities in all or part of 33 states, including Texas, Pennsylvania and Ohio, Postal Service spokesman David Partenheimer said.

Another audit found that postal vehicles on some city routes in 15 states had more than USD 5.8 million in questionable costs. Some vehicles were logged in as having traveled millions of miles in a single accounting period, while others were recorded as having gone a negative number of miles, the March 4 report said.

The findings come as the Postal Service, a government agency required by law to set rates to cover costs, tries to cope with a possible USD 2 billion loss this year after a USD 5.1 billion deficit last year. Postmaster General Chief Executive John Potter said this month that he’s seeking ways to cut costs. First-class stamps will rise a penny to 42 cents on May 12.

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Local airlines and USPS plan for Aloha Airline shutdown

Posted by | Mar 26, 2008 | |

Local airlines and the U.S. Postal Service are making contingency plans in case Aloha Airlines shuts down next week.

Aloha Airlines’ cash plan runs for just 5 more days. They’ll let the bankruptcy court know Monday whether they’ve found a buyer or a loan to continue business.

Others are getting ready in case Aloha can’t go on.

Two additional Go! airplanes have shown up at Honolulu International Airport.

Hawaiian Airlines employees have been told it could be all hands on deck next week.

It’s all part of the back-up plan in case Aloha Airlines stops flying.

“There’s nobody that can fill the gap right away. I’ll tell you that right now,” said Randall Cummings, an Aloha Airlines pilot. “There’s nobody who can fill the gap right away if aloha goes out of business. It will be a crisis.”

A crisis starting with passengers. Hawaiian is already planning to add more flights to move more people if necessary.

“The expanded flight schedules are simply part of a larger contingency plan as a result of Aloha Airlines’ recent filing for Chapter 11 bankruptcy,” said Mark Dunkerley, president and CEO of Hawaiian Airlines.

Hawaiian could also make use of 1 spare 717. Their larger 767s are currently assigned to transpacific routes.

The 2 additional Go! planes on the ground now carry 50 people each, but Jonathan Ornstein, CEO of Go!’s parent company, said, “We are monitoring situation closely and we will respond to the market demand.”

As for Aloha’s 3,500 employees, the unions are coaching members about how to cope with possible job loss — including help with bill payment, unemployment filing, and even getting enough food for the family.

“We’re all trying to be positive,” said Ed Paulo of the machinists union. “We went through this once and hopefully we can pull this out again.”

Besides passengers and employees, other sectors of the economy are working on contingency plans, too.

Aloha is the state’s largest air cargo carrier — including items for FedEx and UPS. It’s one of only 2 carriers handling interisland deliveries for the U.S. mail.

The postal service has seen similar disruptions elsewhere, and its Hawaii spokesperson Duke Gonzales said: “We have been able to overcome those challenges in the past and are confident that we’ll be able to continue to serve our customers.”

The postal service is exploring short-term emergency contracts.

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US Postal Service moves to improve address quality for mailing industry

Posted by | Mar 26, 2008 | |

Every accurate address enables the U.S. Postal Service to provide more efficient mail processing and helps mailers avoid wasted expense. In 2004, more than 9.7 billion pieces of mail were sent to undeliverable addresses of which over 600 million pieces were sent to “vacant” addresses—a house, apartment, office, or building not occupied for at least 90 days. To reduce that unwanted mail, the Postal Service has developed a new data table that is used with address matching software which helps mailers determine when they may be sending to vacant addresses.

The new “no-stat” and “vacant” tables are available through Coding Accuracy Support System address matching software (CASS Certified) as part of the Delivery Point Validation (DPV) product. The tables are simple to use and can help mailers save on production and postage costs by reducing undeliverable-as-addressed (UAA) mail. If an address is flagged as vacant, the recommended course of action is to remove that address from the mailing until it becomes occupied again.

By utilizing CASS Certified software, mailers can standardize addresses and obtain the correct ZIP + 4 assignments and associated delivery point codes (DPC). CASS Certified software using DPV logic can determine if the ZIP + 4 coded address is recognized as a valid delivery within the USPS delivery network, further strengthening the quality and deliverability of address lists. Additionally, CASS Certified software is necessary for mailers claiming presorted, carrier route, and automation rates. The use of this software is the first step in effectively managing overall mailing costs and obtaining eligibility for postage incentives.

To learn more, mailers can contact their DPV product vendor to learn whether these new tables are incorporated in their products. If mailers are using a service bureau to process address lists, ask that provider to use these tables during processing. The release of the “no-stat” and “vacant” tables is another example of the Postal Service’s ongoing commitment to address quality and helping the mailing industry make effective and efficient use of the mail.

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TT Post spending USD 4.7m to upgrade its delivery service

Posted by | Mar 26, 2008 | |

The Trinidad and Tobago Postal Corporation (TTPost) is set to improve its delivery network at a cost of USD 4.7 million within the next three months.

TTPost communications manager, Simone Farmer, said yesterday that the company, currently involved in wage negotiations with the Trinidad and Tobago Postal Workers’ Union, had met recently and identified solutions to several issues.

Postal workers in South and Central have been protesting in recent times over a series of problems, including defective mail bags, unsafe conditions at the workplace and general “unsatisfactory working conditions”.

Recently in Chaguanas, Couva, Marabella and San Fernando, workers downed tools in protest of these conditions.

The buildings occupied by the Chaguanas and Marabella workers were deemed unsafe and the workers also protested insufficient motorcycles for the delivery officers.

Workers at San Fernando, Couva and other areas also complained about defective mailbags.

Farmer said in a statement that the company’s decision to spend millions to improve its delivery network was a result of concern raised by the workers.

Among the challenges faced by TTPost, Farmer said, was the inadequacy of staff facilities at premises rented by the company for its delivery operations.

“However, negotiations with the relevant landlords have secured approvals for structural improvements to the affected sites,” she said.

Farmer said April 25 was identified as the deadline date for repairs to the Chaguanas and Couva/California delivery offices, while defective mail bags and other old materials currently in use by workers will be replaced by April 30.

“TTPost is already working assiduously to expedite the completion of the scheduled improvements. In the interim, the corporation looks forward to the full support of its workers to ensure that the delivery of postal services to the national community will suffer no further interruptions,” said Farmer.

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UPS Chief urges US transport investment

Posted by | Mar 25, 2008 | |

The US must reinvest in its ageing, overused transportation networks or risk losing ground to the world’s other leading economies, United Parcel Service’s Chief Executive said.

Scott Davis told the Financial Times that the nation’s private sector should seek out opportunities to partner with transportation authorities to help modernise the infrastructure that underpins the US economy.

“We’ve got to work very closely with the government to look ahead and take a candid look at where we are,” said Mr Davis, who took over as Chief Executive of UPS in January. “It’s so critical to the future competitiveness of the US that we build the transportation infrastructure that we need.”

The US may need to spend USD 1,600bn in the next five years to restore its infrastructure to good condition, according to the American Society of Civil Engineers.

While some state and local governments have sought investors to help fund infrastructure improvements, the programmes often meet resistance from politicians and consumer advocates concerned that the arrangements cede control of a steady source of revenue to private entities.

Repairing and upgrading ageing roads and bridges, antiquated air-traffic control systems and overcrowded ports and railways would help ensure the US remains a viable trading partner, Mr Davis said. Total cross-border transactions may swell to more than USD 70bn by 2025, compared with USD 10bn last year.

“If we sit still, we may get left out of global trade,” Mr Davis said. “That’s the danger for the US. Just think of the problems we’re going to have with the ports and the highways and the airports and the rails.”

In spite of its global reach, the US remains the Atlanta-based company’s biggest and most important market.

UPS underscored its continued dependence on the US this month, warning that a drop in demand for domestic package deliveries, which had set in by February, may leave the company short of its quarterly profit forecast in spite of growth from its international and supply-chain management businesses. FedEx, UPS’s arch-rival, cited the same concerns for the US economy last week.

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