According to the United States Postal Service’s year-to-date (YTD) fiscal data (Oct. 1, 2003, through Mar. 31, 2004), YTD revenue of USD 35.5 billion was 1.4% over budget, and expenses of USD32.9 billion were 1.7% under budget plan. The YTD net income of USD2.5 billion was USD1.0 billion more than budget. Meanwhile, total mail volume was up 1.1% in the first six months of fiscal 2004.
Read MoreA House committee on Wednesday approved what would be the first overhaul of the US Postal Service in 34 years, giving it the flexibility it needs to compete against new technology and aggressive rivals. The legislation, 10 years in the making, is aimed at making the USPS more competitive in a new business environment where e-mail has reduced mail volume and private companies have taken away business. The 40-0 vote for the legislation indicated strong bipartisan backing. Republican leadership has pledged to bring the bill to the House floor this session. In the Senate, the Governmental Affairs Committee is set to consider similar legislation. Under the bill, the Postal Service would continue to guarantee delivery six days a week to every address in the United States. A new system for establishing postal rates would be established. Rate increases for market-dominant products such as letters and periodicals would not exceed the annual change in the Consumer Price Index. The Postal Service is provided with different pricing freedom for products that compete with FedEx Corp. and United Parcel Service.
Read MoreOhio and Kentucky have been thrust into a competition to keep and possibly expand their DHL cargo hubs, a major employer in both states.
Both states are putting together tax incentive packages to persuade DHL to choose one over the other. Thousands of jobs may be at stake in what could be one of the most expensive contests between the two states to keep and expand jobs.
DHL, which operates an air hub and package sorting facility at Cincinnati/Northern Kentucky International Airport, is considering consolidating that hub with a larger one it now owns in Wilmington, Ohio, just 50 miles to the north, said DHL spokesman Jonathan Baker.
DHL bought Airborne Express last summer and insisted it would keep both its Cincinnati facility and a similar operation at Airborne’s Wilmington airport. But the company changed its tune after the closing of the $1 billion deal and an ongoing consolidation of other DHL operations.
Read MoreUnited Parcel Service and FedEx have lost a bid to overturn a ruling that may aid Deutsche Post’s U.S. expansion efforts, which included the acquisition of ground-based operations from Seattle-based Airborne last year. The Transportation Department said yesterday it won’t review an administrative law judge’s Dec. 19 decision that German postal service Deutsche Post doesn’t control Miami-based Astar Air Cargo. UPS and FedEx, the largest U.S. package-delivery companies, argued that the German company’s DHL unit controlled Astar in violation of U.S. law. They can appeal in federal court. The two U.S. companies have sought to block DHL’s expansion in the USD 50.2 billion U.S. ground and air parcel-delivery market, analysts have said. Closely held Astar, the former DHL Airways, carries air cargo linked to DHL’s U.S. ground-delivery network, purchased in 2003 from Airborne.
Read MoreA judge is expected to order United Parcel Service Inc. next week to offer free shipping vouchers to customers as part of the settlement of a class-action lawsuit that alleged the company overcharged for package insurance. Under the settlement, UPS would offer vouchers to anyone who can prove they bought “excess value” package insurance between August 1994 and October 2003. The attorneys for the plaintiff argued that the Atlanta-based company charged consumers too much for the insurance. The two sides agreed on a tentative settlement in February. The U.S. District Court judge in New York’s Southern District scheduled a final hearing on the settlement for May 21, after which class participants are expected to begin applying for vouchers. The vouchers expire 180 days after they are issued.
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