Tag: USA

U.S. Postal Rate Commission recommends 7.6 percent rate increase

Posted by | Feb 26, 2007 | |

In a surprising decision, the Postal Rate Commission today has recommended rates that are either equal to or below those requested by the U.S. Postal Service, while still providing the agency with sufficient revenue to meet all its needs.

The decision was made by Dan G. Blair, the new chairman of the new Postal Regulatory Commission. The recommendation, which was delivered a week before deadline, came as a unanimous decision.

The decision follows an administrative proceeding involving mailers, employee organizations, consumer representatives and competitors. While the rate increase will impact numerous classes of mail to varying degrees, the average rate increase will be 7.6 percent. The rates proposed by the postal service equate, on average, to an 8.1 percent increase.

The USPS filed May 3 with the PRC for an average 8.5 percent rate increase, explaining it would otherwise lose USD 5.9 billion in 2008. The PRC found additional income necessary to satisfy the “breakeven” requirement that postal revenues match costs.

The PRC also approved the USPS’ “Forever Stamp” proposal specifically designed to ease the public’s transition to new single-piece letter rates. Forever Stamps will be sold in reasonably limited quantities for the price of a First-Class one-ounce letter and continue to be worth the price of a First-Class, one-ounce letter even if that price changes.

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How technology delivers for UPS

Posted by | Feb 26, 2007 | |

Not so long ago, UPS drivers worked off maps, 3-x-5 note cards, and their own memory to figure out the best way to run their routes. That changed in 2005 when UPS began to implement a USD600 million route optimization system that each evening maps out the next day’s schedule for the majority of its 56,000 drivers. So sophisticated is the software that it designs each route to minimize the number of left turns, thus reducing the time and gas that drivers waste idling at stoplights.

UPSs innovation is an example of how technology can help companies capture institutional knowledge about their customers. Before, when a truck loader or driver walked out the door, the package- loading techniques or route tips they’d developed over the years usually walked out with them. Now that knowledge is accessible in a central system. That eases the burden on substitute drivers and shortens the training time for new ones, lessening the chances of a lapse in customer service. In November alone the company’s drivers logged 3 million fewer miles than they did the year before.

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Shippers wait to see whether other carriers will follow Maersk’s lead in restructuring inland network

Posted by | Feb 26, 2007 | |

Carriers determined to raise rates above and beyond higher rail costs

Maersk Line’s decision to streamline its inland network is causing heartburn for shippers such as Dave Panjwani, but the restructuring reflects the enormous cost of intermodal service to Maersk and other carriers.

Gordon Dorsey, a spokesman for Maersk, said the inland portion of shipping a container from Hong Kong to destinations in the U.S. interior accounts for about two-thirds of the total cost.

According to Dorsey, only a small percentage of the carrier’s customers will be affected by its action, but one of them is Panjwani, manager of international logistics for Deere & Co.

Maersk spokeswoman Jessica Kubacz declined to say where it is terminating inland service.
Besides revamping its inland network and consolidating some of its worldwide liner services, including trans-Pacific and trans-Atlantic routes, Maersk is seeking hefty rate increases this year, as are most other carriers. While that will be the main subject of contract negotiations between shippers and carriers over the next two months, Maersk is getting an early jump.

In the coming months, other Midwest shippers and NVOs will face choices similar to those encountering Panjwani and Huang. An informal survey of shippers, carrier executives and forwarders conducted in mid-February found that no other container lines had yet decided to revamp their inland networks as Maersk is doing, but it’s clear that carriers are determined to pass along the higher intermodal rates demanded by the railroads.

The main cost driver for all carriers this year is the cost of rail and truck intermodal service, said Lamont Petersen, vice president of marketing for Hyundai Merchant Marine.
According to Petersen, the rates charged by the container lines were not remunerative even before the railroads hiked their prices.

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FedEx Pilots "Smart" Tracking with Google Earth

Posted by | Feb 26, 2007 | |

According to ZDNet, FedEx CIO Robert Carter revealed at the Wharton Technology Conference in Philadelphia a pilot program that FedEx is experimenting with tracking valuable packages with Google Earth. The tracking involves more than just positional information – things like: package’s temperature, location, humidity levels and delivery status. The tracking device used in the pilot involves a “wireless device, about the size of a small cell phone, transmits information back to the company over public Wi-Fi networks.” For a long time now, I’ve been expecting one of the big tracking companies (UPS, FedEx, DHL) to release a network link capability to allow individuals to track their packages. But, none has yet to be released. In this case, FedEx is only experimenting with valuable packages. According to FedEx CIO Carter, using Google Earth has saved them considerable money for the tracking. But, whether this will be available anytime soon? He says: “It’s still a closed pilot, which is about all I can say.”

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USPS prepares mailers for new postal law effects

Posted by | Feb 26, 2007 | |

The diligence the U.S. Postal Service is taking to interpret the new postal law and communicate its effects to its customers became clear at the quarterly meeting of the Mailers’ Technical Advisory Committee.

On Dec. 20, President Bush signed into law the Postal Accountability and Enhancement Act, the first major change at the USPS since 1971. The law benefits customers by ensuring predictable price increases tied to the Consumer Price Index and lets the agency continue its transformation efforts and cost-cutting measures.

Linda Kingsley, the new vice president of strategy and transition at USPS, announced that the agency is working closely on the bill and has published a new Web page at www.usps.com/postallaw. It will give visitors updates on any changes the agency has made to the new law.

Ms. Kingsley and the strategy and transition group will also have a lead role in identifying, planning and managing the timely implementation of the new law’s provisions. In this regard, the group will serve as the primary liaison among all functions with roles in this process, with the ultimate goal of having maximum levels of integration, cooperation and success.

Postmaster General John E. Potter announced that the Postal Regulatory Commission and the USPS will hold a conference March 13 titled “Meeting Customer Needs in a Changing Regulatory Environment.” There, they will discuss how the Postal Accountability and Enhancement Act could increase the agency’s ability to meet customer needs. The event will take place at the Bolger Center in Potomac, MD.

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