Tag: UK

UK Royal Mail pricing plan angers direct marketing industry

Royal Mail has angered the direct marketing industry by asking postal regulator Postcomm to consider a proposal to price mail by size rather than weight.

Royal Mail claims that the method is an easier pricing system that more accurately reflects the costs of handling mail because it is the size and shape, not the weight, which determines the cost of processing and delivering most mail.

Many direct marketing companies believe that the proposals will be a handicap to the industry. A common claim is that the proposed charging system will stifle creativity, forcing the industry to move towards standard small packaging.

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UK Royal Mail to cut air services

Royal Mail, under fire for scrapping its mail trains, has said it would reduce the number of air services it uses in the latest stage of a £90m cost-cutting programme.

The state-owned company now uses 39 flights each week night, from 24 airports, to distribute 6.6 or 5.5m, of the 82m letters it delivers each day.

Under its new “hub-and-spoke” network, Royal Mail now intends switching from turboprop aircraft to bigger jets capable of carrying containerised mail.

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Brambles profits slump 29% over 14m lost pallets

Brambles Industries, the troubled Anglo-Australian support services group, yesterday revealed the cost of losing more than 14 million freight pallets as it reported a 29 per cent slump in full-year profits. Shares in Brambles, which admitted last December that it had mislaid millions of pallets, fell nearly 10 per cent in London as Sir C. K. Chow, the chief executive, said that the problem has so far cost the company about £28 million. He said the company had found about 4.5 million pallets but that it would have to take a one-off charge of £15 million to get them back into the system, and that a further 4 million pallets had been damaged beyond repair, prompting an additional write-off of £13 million.

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