“Forward ever, backward never: onwards with Breaking Through”
POSTAL NEWS
No 58 -2018

Formulated by UNI Apro Post and Logistics Sector


New postal centre proposed to meet Queensland's online shopping demand. July 16, 2018.

PostNL Baggage service connected to Schiphol technology. 16 July 2018.

House resolution introduced on USPS privatization.
July 16, 2018.

FedEx Isn't Worried About Amazon At All.
July 13, 2018.

British retailers enjoy entente cordiale as fondness of British brands drives a quarter of French shoppers to buy from UK sites. July 13, 2018.
   

New postal centre proposed to meet Queensland's online shopping demand

July 16, 2018
A $200 million parcel sorting facility that can handle up to 40,000 parcels an hour has been proposed for south-east Queensland to meet the online shopping demand.
Australia Post submitted a development application to Ipswich City Council proposing to build the 50,000 square-metre distribution and sorting centre on Robert Smith Street at Redbank.
The new facility would replace the existing facility at Underwood.
Australia Post Group chief operating officer Bob Black said the facility would include the latest in parcel automation equipment, which would triple the current parcel processing capacity.
“The new site will provide a safer environment for everyone and will be big enough to accommodate not just current parcel volumes – which are up 11 per cent nationally year-on-year – but also future growth,” Mr Black said.

The proposed purpose-built facility would have solar power installed, which would save about $400,000 in energy costs a year as well as 1200 tonnes of carbon emissions.
Australia Post said its latest Inside Australian Online Shopping report showed Queenslanders were the biggest buyers of fashion in the country, with online purchases rising 27.9 per cent in the past year.
Ipswich City Council Economic Development and Digital City committee chairman Paul Tully welcomed Australia Post’s plans.
“This is great news for local jobs with some 550 people needed to run the new centre,” he said.
The new facility would be at the Redbank Motorway Estate opposite the recently announced Rheinmetall defence development site.

A new Australia Post parcel sorting facility has been proposed for Redbank.
Photo: Paul Rovere

Source : https://www.smh.com.au/national/queensland
PostNL Baggage service connected to Schiphol technology
16 July 2018
Amsterdam Airport Schiphol, Scarabee Aviation Group and PostNL are working together to enhance the travel experience.
In March 2017 the PostNL Baggage Service was introduced for passengers from Schiphol Airport. Since this week, the existing self-service baggage drop-off technology used at Amsterdam Schiphol Airport is also used for this baggage service. The technology from the Scarabee Aviation Group provides a scalable and future-proof solution. As a result, more passengers and airlines will soon be able to use this service.
A PostNL deliverer collects the luggage and scans the boarding passes at the doorstep. The information is verified via the Schiphol systems with the relevant airline, which means that the baggage is checked in immediately. At the airport, the suitcase is loaded onto the aircraft through the regular process, after which it can be collected at the baggage claim of the destination. This allows the passenger to travel to Schiphol without any hold baggage and he can proceed to security immediately upon arrival at the airport.
Joint innovation in the travel process
“Schiphol continuously innovates to make the travel process as pleasant as possible. With smart digital solutions, we optimize the passenger flow and further improve the passenger experience”, according to Henk-Jan Gerzee, Royal Schiphol Group's Chief Digital Officer.
"The step from ‘self-service Bagdrop’ to ‘online Bagdrop’ is an important innovation in the travel process. The cooperation between Schiphol Airport, PostNL and Scarabee results in more choice for the passenger with a carefree journey in prospect. The passenger can get on board knowing that his or her suitcase is in good hands”, says Michael Tan, CEO of the Scarabee Aviation Group.
“By working together to professionalize the baggage service, Schiphol, Scarabee and PostNL ensure that the process is even smoother. In addition, we relieve the burden from travelers and offer them convenience. We see, for example, that 40% of the users of the baggage service are switching to public transportation. Travelling to the airport without suitcases should be a natural choice”, says Liesbeth Kaashoek, Director of Parcels and Logistics at PostNL.
PostNL Baggage service
In March 2017, PostNL introduced the pilot baggage service for passengers traveling from Schiphol and Eindhoven airport, which was continued in 2018. The PostNL baggage service has two variants. At the check-in service, luggage is collected at home, sealed and checked in by PostNL for the traveler. The check-in service is now only available for passengers travelling with Corendon. It is expected to be extended to other airlines. In addition, there is also the standard service whereby luggage is collected at home and delivered to the airport. The traveler can pick up the suitcases at the airport and then checks in the baggage himself. This service is offered through the NS (Dutch Railway Company) and other travel organizations.

Source : https://www.postnl.nl/en/about-postnl/press-news/news/2018


House resolution introduced on USPS privatization
July 16, 2018
Today, a group of 10 bipartisan representatives introduced a House Resolution (H. Res. 993) calling on Congress to take all appropriate measures to ensure that the Postal Service remain an independent agency of the federal government and not be subject to privatization.
The bipartisan resolution was introduced by Reps. Rodney Davis (R-IL) and Stephen Lynch (D-MA). Other original cosponsors will be Brian Fitzpatrick (R-PA), Paul Cook (R-CA), Brian Mast (R-FL), Don Young (R-AK), Cedric Richmond (D-LA), Stephanie Murphy (D-FL), Dave Loebsack (D-IA) and Marcia Fudge (D-OH).
The resolution’s introduction comes in response to the recent Office of Management and Budget (OMB) government reorganization and restructure plan titled “Delivery Government Solutions in the 21st Century." While the report takes direct aim at numerous agencies, it calls for privatizing the Postal Service.
“NALC commends our bipartisan friends in Congress for their immediate action to push back against this ill-conceived idea that will adversely impact the constituents they represent and the letter carriers who serve them seven-days-a-week,” said NALC President Rolando.
“Privatization of the Postal Service will inevitably increase costs and limit service for locations not deemed profitable, which is just the tip of the iceberg. Privatization will also threaten the standard of living of letter carriers and all postal employees.” continued Rolando.
 “Just as NALC laid out for the White House Postal Task Force, we believe that sensible financial reforms are the way forward -  not burning down the barn at the behest of private shippers.” Rolando said. “We encourage all members of Congress to cosponsor this important bipartisan resolution and oppose any effort to privatize this public institution based in the Constitution.”
NALC encourages all letter carriers to contact their members of Congress to become cosponsors on this resolution.

Source : https://www.nalc.org/news/nalc-updates

FedEx Isn't Worried About Amazon At All
July 13, 2018
FedEx Corporation (NYSE: FDX) stock is down more than 6.6 percent in 2018, and the threat of competition from Amazon.com (AMZN) is a big reason why. However, Bank of America analyst Ken Hoexter met with FedEx management this week, and the company insists that Amazon is more friend than foe.
Hoexter says FedEx still has a number of long-term advantages over Amazon and other competitors, and the company has a fairly impressive growth outlook. FedEx is targeting 9 percent revenue growth in fiscal 2019 and at least $1.2 billion in its express unit's operating income growth.
Management said its ground operations can eventually grow operating margins into the upper teens, a slightly more optimistic outlook than the mid-teens target the company previously discussed.

FedEx is expecting margin improvements for express as well. The company says express margins will expand from 8.2 percent in fiscal 2018 to the mid-teens over the next several years.
While the financial outlook for FedEx seems compelling on the surface, Amazon’s entry into the delivery business is the elephant in the room for FDX stock at the moment. Dealing with Amazon is understandably scary for FedEx investors, but the company says Amazon will continue to be more of a partner than a rival.
“FedEx continues to see Amazon as a partner and customer, arguing that it would be exceedingly difficult for the e-commerce giant to match FedEx’s density, and that it cannot envision Amazon being able to compete on cost,” Hoexter says.
The other wildcard for FedEx in recent months is the international trade war, but the company said this week that volumes have not been impacted up to this point and its current fiscal year is off to a strong start.
With the stock down 13 percent from its June highs, sentiment may be a bit too low for FDX stock given its current valuation.

 “With shares at just 13x our [fiscal 2019] EPS target of $17.25, near the low-end of its historical 13x to 19x forward PE range, we believe FDX offers an attractive risk-reward given the double-digit EPS growth we target for [fiscal 2019] and [fiscal 2020],” Hoexter says.
Bank of America has a “buy” rating and $310 price target for FDX stock.



Source : https://money.usnews.com/investing/stock-market-new


British retailers enjoy entente cordiale as fondness of British brands drives a quarter of French shoppers to buy from UK sites

July 13, 2018

Purchasing from the UK

One in four online shoppers in France have purchased from a UK site in the last three months, according to a study commissioned by Royal Mail ahead of Bastille Day. Of these shoppers, the average spend on UK websites is €57 (£50) per month.
The study found that fondness of British brands (72%), quality of produce (76%) and unique British character (83%) are all factors that are significantly more likely to drive these shoppers to UK based sites compared to shoppers from other countries. Purchases from the UK also tend to be made when items can be found at a lower cost (69%). With global reach and the leading enabler of ecommerce in the UK, Royal Mail is well placed to observe trends across the industry.

Shopping habits of French consumers
The average shopper in France spends €95 (£84) per month shopping (excluding groceries), with €87 (£77) of this spent online. This is 92% of total spend, up from 87% in 2015. The average French online shopper is 48 years old, more likely to be female and live in an urban setting.
Shoppers in France favour more traditional devices when shopping online. They are significantly more likely than shoppers in the UK to use either a laptop or desktop. There has been some shift to smartphones since 2015, with usage increasing from 14% in 2015 to 25% in 2018. Almost nine in ten (89%) use a laptop or desktop to shop online, compared to the UK average of 73%. A third (33%) uses a smartphone or tablet, compared to the UK average of 53%.
When it comes to products, the top three most popular categories for French shoppers are: clothes (37%), books (24%) and footwear (23%). They are also significantly more likely to purchase accessories and DIY equipment.
Although French shoppers’ home address remains the most popular location to receive deliveries, a greater proportion are likely to want deliveries made to convenience stores (17%) than the average international shopper (5%). Just over one in three French shoppers (34%) typically have their parcels delivered to a parcel shop.

A spokesperson for Royal Mail said“It’s important for retailers to understand the distinct shopping habits of consumers in different countries. Although French shoppers are less likely to shop on mobile than the UK average, there has been some shift to mobile since 2015. The French ecommerce market does lag behind other markets but online spend as a proportion of total non-grocery spend is above the international average and retailers should be prepared for this to increase.”


Source : https://www.royalmailgroup.comNo 59 -2018

Formulated by UNI Apro Post and Logistics Sector


Interim Report January-June 2018: New business agreements, continued transformation and focus on quality. July 18, 2018.

POSTEN NORGE Aims To Develop “The World’s First Self-Driving Mail And Parcel Robot”. July 18, 2018.

Spain to recover US$196m from Correos. July 17, 2018.
Fighting to Change the Culture of Bullying at Canada Post – Next Steps. July 17 2018.
DHL Express strengthens unmatched intercontinental network with order of 14 new Boeing 777 Freighters.
July 16, 2018.
   

Interim Report January-June 2018: New business agreements, continued transformation and focus on quality

July 18, 2018
SECOND QUARTER 2018
Net sales increased by 5 % to SEK 9,503m (9,067).
Operating income decreased to SEK -901m (-291).
Adjusted operating income was SEK 68m (-4).
Net income totaled SEK -901m (-336).
Earnings per share were SEK -0.45 (-0.17)
Cash flow from operating activities totaled SEK 1,862m (922).
Message from Håkan Ericsson, President and CEO
The year’s second quarter was dominated by a high level of activity in every area. In addition to approval from the EU for the first stage of our owners’ financing for the transformation in Denmark, most of the new commercial agreements were signed.
On May 28, the EU Commission notified its approval of the SEK 1,533m government subsidy to finance compensation from the Danish State to Post Danmark A/S for the extra costs of the universal postal service. On June 11, PostNord’s Board of Directors agreed to carry through immediately the transformation of PostNord Denmark announced earlier and awaiting EU approval of the financing arrangement. Income for the second quarter was impacted by SEK -1.1bn net, as a result of the above-mentioned government subsidy and provision for the transformation.
Parcel volumes continued to grow rapidly, by 17 percent, during the quarter, while and mail volumes again decreased, by -7 percent. To be able to handle the higher parcel volumes, we placed several new terminals in service. Our challenge in Sweden is that we are witnessing major losses in mail revenue while the number of households for mail deliveries is increasing. A trend that is, of course, bringing pressure on the profitability of our mail business. The Group reports a more or less break-even result, excluding items affecting comparability, for the first half-year. The Group’s results are to a major extent affected by the losses in Denmark during the transformation and by higher costs incurred by the Swedish company to ensure high delivery quality. Compared to the second quarter 2017, the result is better partly due to the relative dates for Easter between the years.
The service partner agreement with the ICA chain in Sweden have been extended via a multi-year agreement. We have also signed a new service partner agreement with Reitan Convenience Sweden AB, owner of the Pressbyrån and 7-Eleven retail outlets. The new and extended agreements are evidence of the commercial attractiveness of being a service partner, and ensure a leading service partner network in Sweden for the future. PostNord Strålfors, too, signed several new agreements combining physical with digital communication during the quarter, including ones with Aller Media, Telia Danmark, Intrum and Kraftringen.
We are continuing to develop our digital services. For example, we have incorporated use of Swedish bank IDs into our PostNord app. For customers using the system, recipients can choose to redirect parcels or change recipients via the app, which currently has more than 1.5 millions users across the Nordic region. We have also announced our intention to launch our own digital mailbox in Sweden and have applied to the Swedish Tax Agency for approval as a digital mailbox operator for “Mina meddelanden” (My Messages). During the quarter, we launched a digital system for direct VAT payment at purchase for those buying from the USA’s online e-commerce company Wish. The system simplifies the process for both customer and PostNord. We expect more e-commerce actors to sign up to the system.
During the quarter, PostNord conducted a nationwide tour of Sweden to listen to recipients’ views on our business. We performed a similar process in Denmark, where we invited citizens to meet us at one of our post offices In just over two months, we visited 23 locations in Sweden, from Luleå in the north to Malmö in the south, and talked to more than 20,000 people to hear their opinions on PostNord. While we did receive quite a number of comments on our service, the most common remark was “I don’t have any problem with your business, but I’ve read in the newspaper about all the problems you’re having.” This reinforces our conviction that we are on the right road. Our services are appreciated by many, but we must continue to focus on meeting the expectations of recipients regarding delivery quality. Only when do so will we regain the trust that we urgently need to put into place the huge changes that are continuingly required to deal with lower mail volumes and the rapidly expanding e-commerce.
Source : https://www.postnord.com/en/media/press-releases

POSTEN NORGE Aims To Develop “The World’s First Self-Driving Mail And Parcel Robot”

July 18, 2018
Posten Norge has announced that it will be working with Buddy Mobility to develop what it describes as “the world’s first self-driving mail and parcel robot”.
“The mail and parcel robot will be equipped with advanced control and sensor technology. It will drive at only six kilometres an hour, which means it poses little risk to its surroundings. It also increases the likelihood of commissioning the robot sooner,” said Tone Wille, CEO of Posten Norge.
Wille continued: “We have great faith in a self-driving future and in the profitable applications in the short and long term for a logistics company like ours. To some extent we are dependent on technology development by the major vehicle manufacturers. At the same time, we also want to stimulate the market to develop more niche-driven solutions, and our innovation agreement with Buddy Mobility is an example of this.”
The plan is to test the robot in a residential area in Kongsberg towards the end of the year, according to an article that Posten Norge has placed on the NTB.info website today (18 July).
According to the Posten Norge article: “In selected locations, the new robot could replace the mailbox as we know it today. You will be notified that mail and parcels are on the way, and you can decide whether to meet the robot down the street and pick up the delivery immediately or to book delivery right to your door at a time that suits you. The robot drives itself back to the distribution centre in the evening and is filled up overnight with the next day’s deliveries. The mail and parcel robot can serve up to 100 households.”
We have, of course, already seen a number of companies – notably Starship Technologies and Marble – develop pavement-travelling robots for on-demand grocery and package deliveries in urban environments.












Source : https://postandparcel.info


Spain to recover US$196m from Correos

July 17, 2018
The European Commission has found that publicly owned Spanish postal operator Correos was overcompensated for its universal delivery service obligation between 2004 and 2010, and also benefitted from incompatible tax exemptions.
In February 2016, the European Commission opened an investigation to examine whether a number of state support measures granted to Correos as compensation for carrying out this public service obligation were in line with EU State aid rules.
The Commission examined the support measures under EU State aid rules on public service compensation, adopted in 2011. According to the rules, member states can grant state aid to companies to compensate them for the extra cost of providing a public service, subject to certain criteria. This requires that companies entrusted with such services are not overcompensated.
The Commission’s assessment showed that Correos was overcompensated by approximately €166m (US$194m) for providing universal postal service in Spain from 2004-2010.
Specific tax exemptions granted since 2004 to Correos gave it an undue advantage, amounting to approximately €900,000 (US$1.05m).
The Commission has concluded that the aid granted through these two measures was incompatible with the internal market and ordered Spain to recover approximately €167m (US$196m) from Correos.



Source : https://www.postalandparceltechnologyinternational.com/news/delivery



Fighting to Change the Culture of Bullying at Canada Post – Next Steps
July 17 2018
The Canadian Union of Postal Workers will meet interim President and CEO of Canada Post, Jessica McDonald, and the heads of all unions at Canada Post, on July 23rd to discuss the ongoing problem of bullying, harassment and intimidation of workers.
The bully-bosses campaign began in January this year when a postal worker from Winnipeg asked the Prime Minister about bullying at Canada Post during a town hall meeting. Following the town hall, we were inundated with stories and complaints about abuse and mistreatment of workers on the work floor. The Prime Minister vowed to take action on this issue and said he had zero tolerance for this type of behaviour.
We have, and will continue to, push the Government to uphold its promise to not only investigate the issues, but instill a much-needed change to the culture of harassment at Canada Post.
We have met with Minister Carla Qualtrough on a few occasions, including April 30th, when we brought a mountain of binders filled with complaints from workers. During each meeting, the Minister has reaffirmed her commitment to making changes at Canada Post that will lead to a culture-change at the corporation.
The Corporation has proposed bringing in a third party to resolve this issue.
The meeting on July 23rd is to discuss the parameters of the project, what outcomes we might expect and consider the options for selecting the third party.
Many of the issues on our work floors are large and complex and they will not be fixed without changing the management culture at Canada Post. However, some issues, including 15.08 overtime harassment are clear-cut and should be resolved immediately. Letter carriers should not face discipline and harassment for working overtime because a broken route measurement system continually dumps more work on them. This problem could be fixed today if there was a will to do so. The absence of such action gives us reason to be cautious about the “solutions” proposed.
While dialogue and conversations are a great start, we need to see that the Government and the Corporation are serious about ending the culture of bullying, intimidation and harassment of workers. This issue will not go away without real action.

Source : https://www.cupw.ca

DHL Express strengthens unmatched intercontinental network with order of 14 new Boeing 777 Freighters
July 16, 2018
DHL's investment in the 777 Freighters is a direct answer to the growing demand for global express capacity.

At the Farnborough International Airshow, DHL Express announced today an order for 14 Boeing 777 Freighters, which also includes options and purchase rights for 7 additional aircraft. The delivery of the first four planes is expected to be completed in 2019.
"The acquisition of the 14 Boeing airplanes reflects a gradual replacement of our older intercontinental fleet. As the most fuel-efficient, most reliable freighter type with the best long-haul range, these aircraft will contribute to our emissions reduction targets and allow us to serve even more markets with non-stop flights. DHL was an early adopter of this type of aircraft for the logistics industry and took delivery of the 3rd B777F produced by Boeing in 2009. With extensive experience operating this freighter type, it has proven to be superior in all aspects of operation making it a logical choice," explains Ken Allen, CEO, DHL Express.
Overall, these 14 intercontinental plane replacements are capacity neutral, but operational wise with significant cost, efficiency and reliability benefits. And, while DHL Express in the past has chiefly been leasing aircraft to operate its global network on the routes, the purchase of fully owned freighter aircraft will improve the cost position of the DHL Express division going forward. For 2018, pre-payments have already been included in the group Capex guidance.
Expanding cross-border e-commerce sales will grow to $4.48 trillion by 2021, which means a growth of 19.2 per cent per year. DHL's investment in the 777 Freighters is a direct answer to the growing demand for global express capacity. Being the largest twin-engine cargo airplanes in the world, Boeing's 777 Freighters are capable of flying 4,900 nautical miles (9,070 kilometers) with a cargo load of 102 tons.
These state-of-the-art aircraft will reduce CO2 emissions by 18 per cent versus the aircraft being replaced. This will help us to contribute to greater sustainability in line with our climate protection target which is to reduce all logistics-related emissions to zero by the year 2050.
DHL Express operates over 260 dedicated aircraft with 17 partner airlines on over 600 daily flights across 220 countries.
 Source : https://www.dpdhl.com/en/media-relations/press-releases/2018