Following consultation, Postcomm on 21 October issued an approval under Royal Mail’s licence to enable the company to make changes to two of its services – Special Delivery and Standard Parcels. The changes will enable Royal Mail to integrate Special Delivery into its proposed single daily delivery, and allow it to withdraw from the service of carrying heavier parcels.
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Read MoreThe UK’s Royal Mail wants to use rail for long-distance bulk mail, but believes the sector cannot provide the consistency needed for time-sensitive shipments.
The decision in June to move time-sensitive mail to road under a new hub-and-spoke system by the spring, saving GPB90m (EUR127.8m), was a “complete no-brainer”, Royal Mail chairman Allan Leighton told a government transport committee inquiry. Quality of service, cost and, most importantly, consistency were all behind the decision, he said. Paul Bateson, Royal Mail’s director of logistics, accepted the fact that infrastructure provider Network Rail gave high priority to mail trains, but he said when there was a problem, rail could not recover quickly enough.
While individual hauliers seem to struggle harder each year to build their business and earn a respectable margin, those who have banded together into pallet networks have never looked back.
The main UK networks, of which six or seven now claim truly national coverage, have been reporting growth levels of 40% and more. The only thing appearing to hold them back has been the limits to their hub capacity and desire to add ever more members.
Now, the market leaders are looking to differentiate their services and establish a clearer individual identity.
Read MoreRoyal Mail chairman Alan Leighton has hinted at a continuing role for rail freight in British letter distribution.
Mr Leighton told a committee of MPs Royal Mail was still talking with six ‘operators’ about retaining a rail freight option.
‘We are not playing games,’ he said. ‘We are in these discussions because we may be able to find a solution.’
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