Tag: USA

USPS trying to improve delivery

Chicago overnight mail delivery is being rated the worst in the nation.
An audit by the Postal Service shows that first-class mail sent between Chicago ZIP codes only made it to the correct address the next day 91 percent of the time between June and September of last year.
U.S. Postal Service District Chicago spokesman Mark Reynolds is responding favorably, despite the negative report.
Reynolds says all the publicity is giving the Postal Service a chance to tell Chicago residents what it is doing to improve the situation.
Reynolds says the USPS’ Chicago district is already implementing plans, including the following: it has hired carriers to fill some of the vacant mail routes.
Reynolds says it’s also looking at its equipment, including the automated mail sorters, which have been known to put the wrong routing code on letters.
Reynolds is advising the public to do what it can to help speed-up the system. Reynolds says apartment dwellers should be sure to put their names on their mailboxes. Also, when addressing letters, everyone should include the entire address, including zip codes and apartment numbers.
Chicago postmaster Gloria Tyson says she’s ordering a review and overhaul of the entire mail delivery system.

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UPS cancels superjumbo

UPS’s withdrawal as the last customer for the misbegotten Airbus freighter was all but inevitable for some time, but the breakup between the aircraft manufacturer and the world’s second-largest cargo airline marked an unusually messy end to a freighter purchase agreement.
The muddy ending was rivaled only by the A380 program itself, a project that has fallen far behind schedule.
Passenger airlines have been clamoring for penalty payments and freighter customers dropped their orders as Airbus has undergone a massive management overhaul in the aftermath.
Freighter cancellations by FedEx Express, which became the first in and the first out on the Airbus sales sheet for A380 freighters, Emirates and International Lease Finance Corp. had left UPS as the only cargo customer for the massive new aircraft.
UPS and Airbus seemingly had set the stage in late February for an amicable parting. They announced a redrawn purchase agreement that allowed either side to end the sale under a preset timetable.
But on Feb. 28, Airbus disclosed a restructuring plan in which it will lay off 10,000 employees. And a day later Airbus pulled its workers off the freighter assembly line to work on passenger versions of the plane, an action UPS officials did not learn about directly from the manufacturer.
UPS now is focused on adding the capacity the company believes it will need in the international arena in coming years.

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USPS aims to save with independent carriers

Urban America will no longer be the exclusive enclave of letter carriers employed by the U.S. Postal Service.
Looking to cut costs nationwide, the Postal Service will now award contracts to nonpostal employees for deliveries in large new housing tracts, usually located on the fringes of cities.
These independent contractors don’t get benefits. They drive their own cars. The only sign that they are associated with the Postal Service may be a badge at their waist or hanging from a lanyard around their neck.
First up for Fresno: Copper River Ranch, where Cynthia Majors last week began delivering to 50 addresses on the city’s northern fringes.
More contractors will soon follow, postal officials say.
It is the same in Clovis, where there are plans to start contract service in the next few months in new parts of the city.
The Postal Service has long used contract workers on rural routes, including those in the Sierra Nevada foothills, and scores of private businesses offer official postal services.
Postal officials say that in a competitive business environment, the move will save the agency money because the private contractors aren’t paid benefits and use their own vehicles, among other savings.
Officials said postal patrons will see no change in service levels. But the union that represents the letter carriers says handing over urban delivery routes that have historically been handled by Postal Service employees will mean a drop in quality.

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Crittenden withdraws as nominee for UPS Board

The Board of Directors of UPS announced that Gary L. Crittenden, who will become the chief financial officer of Citigroup on March 12, has withdrawn his name for election to the UPS Board.

On Feb. 14, the UPS Board announced it had nominated Crittenden to stand for election as a new director at the company’s annual shareowners meeting in May. At that time, Crittenden was the chief financial officer of the American Express Co. He subsequently agreed to become CFO of Citigroup and under Citigroup policy, senior executives may only serve on one outside board.

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DHL looks to expand overseas shipments from the U.S.

Deutsche Post’s DHL is looking to expand overseas shipments from the United States, a senior U.S. manager said.

James Cameron, executive vice president of operations, said Plantation-based DHL has posted a ”slight uptick” in U.S. package volume. However, he added, DHL doesn’t necessarily want to be as big in the United States as FedEx and UPS. ”The scope of what we have is nowhere near the two big giants in the U.S.,” said Cameron.

DHL, a unit of Deutsche Post, Europe’s largest postal service, has spent more than $2 billion in the United States since 2003. DHL said in December it didn’t expect to break even in the United States until 2009.

DHL held about 2 percent of the U.S. ground delivery market at the end of 2006, with UPS controlling 68 percent and FedEx with 18 percent, according to Rick Paterson, an analyst with UBS Investment Research in New York. The U.S. Postal Service and other firms have the rest.

Deutsche Post, based in Bonn, labeled DHL’s U.S. unit its ”weakest performer” in December.

”DHL just does not compete with FedEx and UPS when it comes to service and reliability,” Daniel Ortwerth, an Edward Jones & Co. analyst in St. Louis, said. “The U.S. customer just does not tolerate that.”

Satish Jindel, president of Pittsburgh-based SJ Consulting, said he expects DHL to stick with its strategy of retaining the business it has already won in U.S. ground shipping for at least the next two years, until it is profitable.

DHL’s U.S. division has more than 21,000 employees and contracts for its air lift with closely held Astar Air Cargo, based in Miami, and ABX Air, based in Wilmington, Ohio. As a foreign-owned company, DHL is prohibited from owning a U.S. airline.

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