November 21, 2009

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Norway Post Extends Its Rail Services - November 10, 2009
[Press Release.]Norway Post and Bring are expanding their rail services and starting an innovative train route between Oslo and Rotterdam for the environmentally friendly transport of fresh food to and from the Continent.

Logistics operator Bring is now establishing a direct rail route between Oslo and Rotterdam. The first train left for the Continent last night, fully loaded with fresh Norwegian salmon and returned packaging, which is going to be recycled in Germany.

For the first time, it is now possible to transfer the transport of fresh, quality goods between Norway and Europe from lorries over to trains.


Australia Post Air-Freight Venture Struggles - November 10, 2009
[Matt O'Sullivan, Brisbane Times.]QANTAS'S air-freight joint venture with Australia Post has barely broken even this year, and the result has been blamed on a slump in parcel volumes due to the economic slowdown.

Corporate filings show the profit of Australian Air Express (AAE) slumped to $119,000 for the year to June, down from $17,625,000 the year before and a marked deterioration on the profit of $30.2 million recorded for 2006-07.

AAE's chief executive, Wayne Dunne, conceded yesterday that the past year had presented the 'most challenging' trading conditions since the joint venture was formed in 1992. 'Quite simply, it's due to the effects of the global financial crisis and the economic downturn in Australia. It's just a volume decline.'

Mr Dunne would not comment on suggestions that AAE had lost clients to Toll Holdings' air-freight operations and dismissed speculation that Qantas charged well above the going rate for the lease of aircraft.

He said trading conditions had stabilised and he was hopeful of a material improvement this month before the traditional Christmas rush - '[but] the challenge is still there, believe me'.

The company's total revenue fell to $565 million this year, from $609 million in 2007-08.


French Senate Approves La Poste Reform Law - November 10, 2009
[CEP-Research.]The French Senate yesterday adopted the draft law regarding the transformation of La Poste into a limited company that will remain 100 percent state-owned.

The UMP and Union parties voted for the law with 183 votes against 152 votes from the opposition Socialists, Communists, Greens and other smaller parties.

With this approval, the senate is guaranteeing the public character of the companys capital owned exclusively by the state. It has confirmed La Postes status as the national postal operator offering a public service according to the preamble of the Constitution from 1946.

Two key changes to the draft law were approved by the Senate. The number of postal service points across France should not be less than 17,000 outlets with a complete portfolio of postal and banking services. The financing of the service point network is also guaranteed under an annual revision of the local fiscal system based on cost evaluation of the service point network which is carried out independently by the postal regulation authority.

The draft law contains two parts. One part concerns the European regulation regarding the postal liberalisation in 2011 while the other deals with transforming La Poste into a limited company as of January 1, 2010. Under a subsequent euro 2.7 billion capital increase, designed to raise financing for strategic growth, the French government would contribute euro 1.2 billion and the state-owned Caisse des Depots (CDC) a further euro 1.5 billion. La Poste's current status as a public organisation (establissement public industriel et commercial) has legally prevented such a capital increase.

Marie-Therese Bruguiere (UMP) welcomed the approval of the law, describing it as an  indispensable reform which will give La Poste the means for its modernisation given the challenge of full postal privatisation in 2011.

The opposition, however, criticised the approval of the draft law. This text clears the way for a total privatisation of the public operator, claimed Jean-Claude Danglot (CRC-SPG). This is the oldest and the most emblematic public service which will be provided by a limited company submitted essentially to legal regulations. Never before has a government gone so far in transferring a public service, declared Michel Teston (PS).

In the medium term, the change of La Postes status will inevitably lead to disengagement of the state up to weakening of social capital, increasing cases of discomfort at work and postal service at a discount, criticised Jean Desessard from the Green party.

In July 2008, La Poste signed a public service contract with the French government covering 2008-2012 confirming the companys commitment towards four basic service areas and preparing it for total postal liberalisation in 2011. The contract included commitments to mail deliveries six days a week and mail delivery quality targets, the maintenance of 17,000 postal service points across France, and public access to banking services. The contract was seen as an effort to calm postal unions which have always strongly opposed opening up La Poste to private investors.


Australia Post Air-Freight Venture Struggles - November 10, 2009
[ Matt O'Sullivan, Brisbane Times.]QANTAS'S air-freight joint venture with Australia Post has barely broken even this year, and the result has been blamed on a slump in parcel volumes due to the economic slowdown.

Corporate filings show the profit of Australian Air Express (AAE) slumped to $119,000 for the year to June, down from $17,625,000 the year before and a marked deterioration on the profit of $30.2 million recorded for 2006-07.

AAE's chief executive, Wayne Dunne, conceded yesterday that the past year had presented the 'most challenging' trading conditions since the joint venture was formed in 1992. 'Quite simply, it's due to the effects of the global financial crisis and the economic downturn in Australia. It's just a volume decline.'

Mr Dunne would not comment on suggestions that AAE had lost clients to Toll Holdings' air-freight operations and dismissed speculation that Qantas charged well above the going rate for the lease of aircraft.

He said trading conditions had stabilised and he was hopeful of a material improvement this month before the traditional Christmas rush - '[but] the challenge is still there, believe me'.

The company's total revenue fell to $565 million this year, from $609 million in 2007-08.


Bulgarian Posts To Be Split Into Five Subsidiaries - November 9, 2009
[Press Release.]Bulgarian Posts will be restructured and stabilised financially, minister of transport and ICT Alexandar Tsvetkov said. The changes will help Bulgaria meet its commitments to the European Union for liberalisation of the sector and giving all citizens access to the universal postal service at reasonable prices. The amendments made to the Postal Services Act were aimed at opening the market to private companies and modernising services, Tsvetkov pointed out. About 70% of the post offices make losses, so staff reduction will be initiated to optimise labour costs.

Bulgarian Posts will be split into five subsidiaries in which the state will keep 51%. That will secure fresh capital without the future investors having to own assets, as they will get dividends from the subsidiaries. The scheme will become effective within a month, the transport minister forecast.


CWU/Royal Mail Reach Interim Agreement - November 6, 2009
[Press Release.]Royal Mail today released the interim agreement reached yesterday with the Communication Workers Union with the help of Brendan Barber. The company said that the agreement is on all key issues the same as that discussed last month with the union. Royal Mail said it is clearly very pleased that the CWU has now decided to accept the agreement.

Royal Mail’s statement issued yesterday evening is set out below and the agreement is attached.

Mark Higson, Managing Director of Royal Mail Letters, said [yesterday]: "I’m delighted for our customers and our people that we’ve got back to a sensible agreement with the CWU that will allow us to deliver a great Christmas while getting on with vital talks about the long term future of Royal Mail - and allows us to drive forward with the essential modernisation of Royal Mail in the new year.

"We look forward to positive and constructive discussions on the next stage of Royal Mail’s modernisation plan, which is key to the future of the company, all those who rely on it, and to the future of the Universal Service."

Mr Higson added: "I’m extremely grateful to Brendan Barber for the tremendous help and support he has given over the last few weeks. I’d also like to thank all those who have worked so hard to minimise disruption and to keep the mail moving for our customers."

"I should also add that, as the issue has been raised today, the future of the Royal Mail pension scheme does not and cannot form any part of this agreement. Earlier this year the Government put forward a package of solutions which provided a resolution to the pension issue and would have helped secure our people’s benefits - however the CWU chose to campaign against that package and the Government has since made it clear that it is now no longer available."

[Interim Agreement.]


USPS Announces 2010 Shipping Prices - November 5, 2009
[Press Release.]The simpler way to ship — with convenient Priority Mail Flat Rate Boxes from the U.S. Postal Service — will be just as simple in the New Year, when new prices take effect.

Prices for Priority Mail, a product familiar across America through popular television and online advertisements featuring Al the Letter Carrier, will change on Jan. 4, 2010. Customers also can look forward to several Priority Mail innovations.

In a first for the shipping industry, the Postal Service is introducing cubic volume-based pricing for large volume commercial Priority Mail shippers. Customers who ship small dense, space-efficient packages will receive a financial incentive through a new, tiered pricing option. This encourages greener, more efficient shipping and is one more way the Postal Service is eco friendly.

Other benefits for Priority Mail customers effective in January include a decrease in the domestic Priority Mail Flat Rate Envelope retail price from $4.95 to $4.90. The popular Priority Mail Small Flat Rate Box will continue to be one of the best consumer values in the domestic shipping market at under $5. Its 2010 price will remain at $4.95.

Cubic volume-based pricing will not be the only first in January for customers who qualify to ship at Commercial Plus prices. A Priority Mail half-pound price, based on distance, will be added only in the Commercial Plus pricing category. And, a new Priority Mail Flat Rate padded envelope measuring 9.5 x 12.5 inches will be available exclusively for Commercial Plus shippers. This envelope is specially designed for jewelry, electronics and other delicate goods.

“We have put together a range of creative and innovative products and services for our customers,” said Robert Bernstock, president, Mailing and Shipping Services. “With these new offerings, the Postal Service is reinforcing the value of Priority Mail as the right product at the right time,” he said.

In addition to an overall price increase of 3.3 percent, on average, for Priority Mail, there will be new prices for Express Mail, Global Express Guaranteed, Express Mail International, Priority Mail International, Parcel Select and Parcel Return Service, also effective Jan. 4.

Prices for First-Class Mail, Standard Mail, Parcel Post and other mailing services products will not change in 2010, with the cost of a First-Class Mail stamp remaining at 44 cents.

“The Postal Service is the best buy in the market, whether you’re watching your budget or gearing up as the economy starts to rebound,” Bernstock said, noting that other shippers have announced price increases of nearly 6 percent for 2010, excluding fuel surcharges. Most shippers add extra fees for fuel, rural delivery, Saturday delivery and other items to a customer’s final bill. The Postal Service has no comparable surcharges.

Customers who pay for their shipping services online will continue to save compared to retail prices. Online costs will be, on average, 5 percent less than retail for Express Mail and 5.7 percent less for Priority Mail. Online savings for international shipping will be 10 percent less than retail for Global Express Guaranteed, 8 percent less for Express Mail International and 5 percent less for Priority Mail International.

A complete listing of 2010 prices is available at http://pe.usps.com under the “Jan. 2010 Price Change” link. The new prices and product innovations are pending Postal Regulatory Commission review.

The Postal Service receives no tax dollars for operating expenses, and relies on the sale of postage, products and services to fund its operations.


Royal Mail Strike Prompts the Unlikely Return of the Telegram - November 4, 2009
[The Telegraph.]Thousands of people have started to use telegrams – one of the earliest forms of long distance communication - for their urgent messages as the national postal strike deepens. Telegram firms are reporting an increase in business as customers try to beat the effects of the worst postal stoppages for two years. The news comes as thousands of postal workers prepare to stop work later this week as part of the increasingly bitter dispute. Last night postal unions said 100million items of mail have been so far caught up in the backlog caused by the strikes. Most of the recent demand for telegrams has been driven by banks and employers desperate to make sure that important news – mainly bad – reaches customers and staff in writing within a couple of hours. Telegramsonline, which entered the British market when it bought BT’s telegrams business in 2003, said it was delivering four times more telegrams than normal. For the past fortnight, the Channel Islands-based company has been delivering up to 10,000 of its “same day” messages a week, through a network of 500 couriers across Britain. The Queen, along with the heads of other European royal families, is a big user. Rob van Hoof, a spokesman, said: “She is one of our good customers. These strikes are very important to us. They are always of benefit to us.” Eighty per cent of the extra demand was from banks trying to contact customers with bills, or employers issuing staff with final warnings. “This is because the bad news is more important than the happy news,” he said. Couriergram, which claims to be the UK’s oldest surviving telegram company, said that the number of telegrams it sent out was up a third, from 1,300 a week to 2,000 a week. Couriergram, which was set up in 1982 following the demise of the Post Office’s Inland Telegram Service, said its business was also being fuelled by companies chasing payment. The rest of the firm’s telegram weekly postbag was made of the usual mix of condolence, birth, marriage and anniversary messages. The door-to-door service is particularly good for contacting people whose telephone number is listed as ex-directory. Andrew Robinson, managing director of Couriergram, said: “We are seeing a rise in business. Each telegram is individually delivered by hand to their door by an independent courier.” Just as in 1845 – when the first telegram was sent – today’s telegram firms pride themselves on being able to deliver messages to the recipient’s door within two hours of it being sent to the company. The telegrams can arrive wrapped in an orange sleeve, marked as a telegram in the traditional way, or printed on a company’s letter-head. The chief difference is that today’s telegram senders can place their orders over the internet – and the messages are not priced by the word, but by the page. Telegramonline charges its customers £40 for the first A4 page, followed by £5 for every following page. Couriergram charges a flat rate of £40 per message. Although more than 50million telegrams were sent annually just before the Second World War, their popularity has declined to a few thousand a week because of the popularity of faxes and emails.


TNT Experiencing Mixed Fortunes In UK Strike - November 3, 2009
[The Telegraph.]TNT, the Dutch-based postal business and biggest private mail operator in Britain, is experiencing mixed fortunes in the Royal Mail strikes as it wrestles with labour troubles in its home market.

Its express business is picking up customers in Britain but its postal operation is suffering because it depends on the Royal Mail for final delivery.

TNT, one of the mail business eager to take a stake in Royal Mail before the Government about turn on a partial flotation, believes it will end up benefiting from the disruption in Britain.

Henk van Dalen, chief financial officer, said that while the strikes were creating difficulties in the short-term "in the long-term customers might switch to TNT because they think Royal Mail isn't reliable".

He was speaking after TNT announced its fifth successive fall in quarterly profits amid signs that cost cutting and improvements in its express business are helping the group to turn the corner. Third-quarter net profits of €99m (£89.4m) were down 12.4pc on year earlier on turnover 7.6pc lower at €2.48bn but both sets of figures beat analysts' forecasts.

Mail volumes continued to suffer from more competition resulting from liberalisation of the home market business. TNT has achieved €368m of the €500m it wants to save from cost cutting this year but is struggling to finalise a new labour agreement covering cutbacks in its mail business.

One deal has already been rejected although Mr van Dalen is hopeful of avoiding a Royal Mail style confrontation and concluding an agreement by the end of the year.


UPU Puts Addressing On UN Agenda - November 3, 2009
[Press Release.]UPU Director General Edouard Dayan urged United Nations organizations and agencies on Friday to join a UPU campaign to develop efficient addressing systems world-wide.

Attending the United Nations Chief Executives Board meeting in New York, Dayan told Secretary-General Ban Ki-moon and colleagues that addresses are a critical tool for economic and social development and an essential part of a country’s national infrastructure.

Addresses are taken for granted in industrialized countries, but billions of people in developing countries don’t have them, preventing citizens from being full members of the community, Dayan said.

“People without addresses cannot easily vote or enjoy a full legal identity, nor can they easily open a bank account or qualify for credit or loans,” he recalled.

The head of the UN agency for postal services reminded his colleagues that addresses are important for delivering health and emergency services, developing rural and urban policies, and providing access to basic public services such as electricity or water.

“How can you apply for a decent job without a personal address? How can businesses sell and customers buy online if there is no physical address for delivering the goods? How can people get a passport or an ID?” said Dayan.

The UPU wants to raise awareness of addressing systems and give an address to everyone in the world. Plans include the creation of a multi-agency working group and holding a global summit on addressing in 2011.

Many postal-sector stakeholders are enthusiastic about the initiative. The United Nations Development Programme, the World Bank, UNESCO, the International Telecommunications Union and UN-Habitat have also indicated their desire to join the campaign.


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