Formulated by UNI AproPost and Logistics Sector
DPD: We are experiencing the biggest boom in online retailing in the UK’s history.
2. PostNL provides update on Q2 business trends and FY 2020 outlook. June 17, 2020.
3. Parliamentary support growing for postmasters’ justice fight.June 17, 2020.
4. DHL expands rail transportation network.June 16, 2020.
5. Pos Malaysia recorded a lower net loss for first quarter financial year 2020. June 15, 2020.
1. DPD: We are experiencing the biggest boom in online retailing in the UK’s history
It has also announced 6,000 new UK jobs and a major infrastructure investment in response to the unprecedented boom in online shopping caused by Covid-19.
The new jobs will include delivery and HGV drivers, warehouse staff, management positions and support staff, including mechanics.
DPD is forecasting the growth to continue this year, despite shops reopening, as households continue to rely on online deliveries for a greater proportion of their shopping, including food and drink.
The new infrastructure investments and recruitment will be in place before Black Friday as the firm prepares for what it predicts will be the busiest Cyber Weekend and Christmas period, in its history.
Dwain McDonald, DPD’s CEO commented:”We are experiencing the biggest boom in online retailing in the UK’s history and we are making this unprecedented investment in our infrastructure and people to ensure we can continue to meet the high levels of demand for our services.
“DPD has been one of the fastest growing major companies in the UK in the last 10 years, due to the growth in e-commerce. But what we have seen in recent months is potentially a much more significant shift in behaviour, and we believe elements of it will be permanent. As a company, we’ve been dealing with rapid growth and ongoing investment cycles for a long time, but this is a very significant moment.
“I do think the High Street will bounce back from where things are now, but we have to base our modelling on our conversations with retailers and their projections. It looks like there will remain a much greater reliance on e-commerce in the future – that’s going to be our ‘new normal’. This investment and expansion mean that we will continue to be right there for our retail customers, alongside them, with the capacity to cope with the demand they are seeing online.
“Since this began, we have been handling parcel volumes more akin to the festive seasonal peak than this time of year. For example, volumes over Easter were double last year. The business has performed incredibly well, with service standards at record high levels, as more people have been at home to receive parcels and the roads have been quieter. All this while the operation has had to start scaling-up and adapt to social distancing and contactless deliveries.
“I’m incredibly proud of what our team has delivered during this crisis, including our work with the NHS and food retailers, and I have no doubt that they will continue to provide our customers with a market leading service.”
2. PostNL provides update on Q2 business trends and FY 2020 outlook
Q2 performance to show strong improvement, positively impacting FY 2020 outlook for normalised EBIT and free cash flow.
PostNL today provides an update on current business trends, taking into account the continuation of the developments related to Covid-19 that started to have an impact during March and accelerated through April and May. PostNL now expects Q2 2020 normalised EBIT to come in strongly above last year (Q2 2019: €39 million) as a result of better performance in Parcels. Based on the expected performance over the first half year, coupled with the current trends, PostNL is adjusting its FY 2020 outlook for normalised EBIT to strongly above the previous guidance of between €110 million and €130 million. The increase in normalised EBIT is expected to translate into an improvement in free cash flow.
Limited visibility due to Covid-19 developments
It remains to be seen how the Covid-19 pandemic will develop in the course of 2020 and over the longer term, and how this will impact the economic environment. Longer-term visibility remains limited due to uncertainties about the duration and severity of the pandemic. The outlook for PostNL’s FY 2020 performance provided today could be impacted by such uncertainties.
Business trends in April and May following Covid-19 pandemic
Governments in the Netherlands and Belgium took health and safety measures early in March to contain the Covid-19 outbreak. Since then, e-commerce growth has picked up meaningfully across almost all segments and products, and e-commerce penetration has increased. At the same time, part of this growth relates to specific consumer spending as a result of the Covid-19 situation. The social distancing measures put upward pressure on costs across PostNL.
In Parcels, volume growth accelerated from close to 14% at the end of March to above 25% in April and May. To accommodate this growth, PostNL scaled up its network considerably. It is currently operating at almost optimal capacity, resulting in improved efficiency levels. The favourable price/mix development in Parcels as reported in Q1 is continuing, as is the positive trend at Spring.
The volume decline at Mail in the Netherlands in April and May was further impacted by a stronger than expected decline in bulk mail, explained by companies postponing direct mail campaigns. This was only partially offset by a slightly better trend in single items.
Health and safety remains first priority
PostNL applies all social distancing guidelines and health regulations to protect its people, partners and consumers as much as possible. It has implemented additional measures in its operations and facilities to support social distancing and to ensure a safe and healthy working environment.
Q2 and HY 2020 results will be published as scheduled on 3 August 2020.
3. Parliamentary support growing for postmasters’ justice fight
June 17, 2020
Dozens of MPs from across Westminster’s political parties have signed an Early Day Motion (EDM 593) asking for a full public inquiry into the persecution of hundreds of postmasters, who were wrongly accused of financial improprieties which were actually due to a faulty computer accounting system, Horizon.
Back in February, Prime Minister Boris Johnson responded to Parliamentary Questions on the matter with a promise to hold an inquiry – but last week, Under-Secretary of State for Business, Energy & Industrial Strategy (BEIS) Paul Scully disappointed everyone by announcing a limited ‘Government Review’.
Justice for Sub-Postmasters Alliance campaigners, who successfully won £58 million in compensation from the Post Office, sharply criticised the planned review as inadequate, a view which was also shared by the forensic accountancy firm Second Sight, which was appointed to investigate Horizon – both organisations announcing that they will not participate in the review.
In a communication to JFSA members, campaign founder Alan Bates described the review as a “sham” and added: “We will refuse any invitations to attend or submit documentation to this review.
“We will only assist a judge-led public inquiry – and would do so gladly.”
Yesterday, Darren Jones MP (Bristol North West), who chairs the BEIS Parliamentary Select Committee, wrote to Mr Scully explaining the key inadequacies of the proposed review, noting that it would have ‘no subpoena powers to summon witnesses and compel them to give evidence under oath’.
Mr Jones ends his letter insisting that ‘a statutory judge-led Public Inquiry needs to be able to establish the truth…for those who have awaited justice for so long’.
And increasing the pressure for justice, Kevan Jones MP (North Durham) has tabled EDM 593, which ‘expresses concern at the scope and formation’ of Mr Scully’s review and ‘strongly urges the Government to institute a judge-led public inquiry’.
Speaking this morning, CWU assistant secretary Andy Furey says: “The review announced last week is totally inadequate for the task of holding to account those responsible for the Horizon scandal, or for the delivery of justice.
“The CWU, of course fully supports the statements from the Justice for Sub-Postmasters Campaign, the IT company Second Sight, the Chair of the BEIS Select Committee and the MPs who have signed EDM 593.
“It’s great to see MPs from all political parties supporting the demand for a full, judge-led Public Inquiry,” Andy continues, “and what we as a union need to do now is to encourage as many MPs as possible to add their names to EDM 593.
“So please take a look at the list of MPs who have signed and ask yourself: ‘Is my MP’s name there’?
“If not, then please email your MP and ask them to sign.
“The more Parliamentary support we can gain for this demand, the more likely it is that justice will prevail for all postmasters and those responsible for this gross miscarriage of justice will be held accountable.”
4. DHL expands rail transportation network
June 16, 2020
In response to heavy customer demand, DHL Global Forwarding, the freight forwarding specialist of Deutsche Post DHL Group, has introduced two new rail connections from Germany to China.
A connection now runs from the KTL terminal on the BASF site in Ludwigshafen via Poland, Belarus, Russia and Kazakhstan to the destination terminal in Xi’an, the capital of the Chinese province of Shaanxi. In addition, an express train connection has been deployed between Neuss and Xi’an via Kaliningrad reducing the transit time to 12 days.
DHL said that with these connections its rail network can provide customers access to faster lead times to Asia covering both less-than-container-load (LCL) and full-container-load (FCL). The implementation of complete block train routes from Europe to China reflects the growing demand for imports and speed of delivery to Asian countries, and complements DHL’s already existing block trains from Xi’an and Chengdu to Europe.
“In the last years, we observed an increasing demand for rail service products to and from China,” explained Thomas Kowitzki, head of Chinarail, Multimodal at DHL Global Forwarding Europe. “Their cost-effectiveness, short transit time, and lower COemissions compared with other transport modes make them an attractive alternative.”
The new Germany-to-China rail services have been established in cooperation with long-term partner RTSB GmbH, Friedrichsdorf, Germany. The trains are loaded with goods from all over Europe and transported over 9,400 km to the central hub for train services in Xi’an, where DHL distributes the cargo within China and to neighboring countries like South Korea, Japan, and Vietnam. The new routes also shorten transit times for customers in other European countries including France and the UK as well as the Benelux and Iberian regions.
5. Pos Malaysia recorded a lower net loss for first quarter financial year 2020
June 15, 2020
Pos Malaysia Berhad (Pos Malaysia) recorded a lower net loss in the first quarter of financial year, 2020 (Q1, FY2020) at RM49.2 million from RM141.1 million in the same quarter last year. Revenue was 6.1% lower at RM558.5 million.
The Group’s courier business saw an increase in parcel volume by 6.7% year-on-year, contributed by stronger demand from e-commerce and online marketplaces, aggressive digital and traditional sales & marketing drive, as well as improved mid-mile and last-mile efficiency.
The mail business saw an increase in revenue of 1.0% year-on-year contributed by the new postage rates revision that was implemented on 1 February 2020. Mail business’ monthly revenue increased by RM11 million in February 2020 but saw a decline in mail volume in March 2020 due to the COVID-19 pandemic.
Pos Malaysia Berhad’s Group Chief Executive Officer, Syed Md Najib said, “Pos Malaysia’s ongoing transformation continues to make progress, with the postal segment achieving improved gross profit as the company begins to realise the benefits of its operations improvements, cost efficiency and business focus initiatives.”
“E-commerce has and will continue to drive our courier segment. Delivery is a key element in the e-commerce customer journey, and we believe that automation of our parcel sorting centres and our digitalisation efforts in deploying the new track and trace system would provide us the competitive advantage and enhance customer experience.” Syed Md Najib added.
Business segment performance
Postal segment revenue was contributed by mail and retail products at RM190.3 million followed by courier at RM178.8 million. The postage rates revision that took effect on 1 February 2020 contributed positively to the postal segment revenue.
The unprecedented COVID-19 has the impacted business resulting in a decline in Q1 FY2020 revenue. While the e-commerce sector saw a surge in demand for courier services at the end of March, fewer retail transactions were recorded in post offices as customers remained cautious in treading outside their homes, while international business was affected by the cancellation of commercial and cargo flights as well as suspension of business activities.
Aviation segment contributed RM62.8 million revenue to the Group. This is mainly from cargo and ground handling businesses.
Logistics segment revenue of RM75.5 million is mainly from freight management business (freight forwarding and haulage) and automotive business (local automotive production volume).
Other segments consisting Datapos, Pos Digicert and Pos ArRahnu were not impacted by COVID-19 and are performing above targets.
The effect of the revised postage rates will soften the financial impact of the decline in mail volume and increase Pos Malaysia’s revenue in FY2020. The Group expects incremental annual revenue of RM100-150 million for the mail business compared to the previous year. The reopening of businesses, primarily bulk mail operators and higher footfall into Pos Malaysia outlets, are expected to provide some improvements to the Group’s mail and retail business.
Average daily parcel volume recorded in April 2020 was approximately 590,000, a 69% increase compared to March 2020 and a 66% increase compared to February 2020. The Group expects this trend to continue as more consumers adapt online shopping as the new norm.
The Group foresees transhipment volume to resume at a gradual pace, once more countries lift the COVID-19 related restrictions. April 2020 saw signs of recovery with transhipment revenue increasing by 84% compared to March 2020, due to the resumption of business in China.
Aviation segment’s recovery is expected to take longer and will depend upon the easing of travel restrictions, border control and imposition of new rules regarding air travel.
The logistics segment is expected to gradually improve with the easing of restrictions and the reopening of the economy by the government.
The group’s near-term objectives are to further improve service efficiencies and consequently, enhance customer experience by embracing automation and digitalisation, as outlined in the Group’s 3-year strategy in modernising its value chain, business practices and infrastructure.
Formulated by UNI AproPost and Logistics Sector
PHLPost commits to keep the post office safe for employees and the public.
3. bpost launches e-commerce platform for SMEs.
June 16, 2020.
4. FedEx Office and Canva Redefine What’s Possible with Launch of Digital Content and Design-to-Print Marketplace. June 15, 2020.
5. More controls and an increase in the minimum wage.
June 15, 2020.
1. A new era begins – DeJoy takes oath as Postmaster General
Louis DeJoy took the oath of office as the nation’s 75th Postmaster General on June 16, expressing optimism for the Postal Service’s future and appreciation for the organization’s employees.
“Together, we will put the Postal Service on a successful trajectory for generations to come,” DeJoy said during a ceremony at USPS headquarters in Washington, DC.
The event was held in a meeting room named for Benjamin Franklin, the nation’s first Postmaster General. Participants observed social distancing guidelines during the ceremony, which featured a small audience that included members of the Board of Governors and the executive leadership team.
Board Chairman Robert M. “Mike” Duncan administered the oath to DeJoy. John M. Barger, a governor who chaired the committee that selected DeJoy for the position, was also present, while the board’s other governors, Ron A. Bloom and Roman Martinez IV, participated in the ceremony through videoconferencing.
The board in May following an extensive nationwide search. He succeeds Megan J. Brennan, who last week.
DeJoy spent his 35-year career in logistics, including serving as chairman and chief executive officer of New Breed Logistics, an award-winning USPS contractor that supplied the organization with support for multiple processing facilities.
He is the fifth Postmaster General to join the Postal Service from the private sector since the organization became an independent establishment within the executive branch in 1971.
2. PHLPost commits to keep the post office safe for employees and the public
For daily health checks, employees and the public are required to declare their whereabouts and health status for easy contact tracing, regularly promotes physical distancing, hand sanitation, regular temperature checking and wearing of facemask.
To keep its workplace safe, mails and parcels regularly received at the post office are being sanitised and disinfected by its maintenance personnel who wear personal protective equipment (PPEs) for secure working environment.
Work arrangements such as flexible hours, shifting and work-from-home were also adapted according to work requirements.
PHLPost is also committed to fulfill its universal mandate of continuous delivery of important mails from various government and private sectors who are important clients of the agency.
3. bpost launches e-commerce platform for SMEs
bpost has announced the launch of its new platform, ‘touslesmagasinsenligne.be’, a solution for SMEs that want to build a webshop to support e-commerce sales.
Online shopping has boomed in Belgium since the beginning of the lockdown. Over several weeks, bpost has delivered up to 500,000 parcels per day on the busiest days.
“bpost wishes to bolster this increasingly successful sector of the economy in Belgium by facilitating access to online retail for local businesses. With this goal in mind, bpost has drawn on its global expertise to develop and launch an innovative new tool that enables SMEs to create a fully functioning online store from scratch,” said Jean-Paul Van Avermaet, CEO bpost Group.
This new-found passion for e-commerce, which has created many new customers, is set to continue. According to bpost, approximately 15% of Belgians have said they will shop online more even after the lockdown is lifted.
Among the beneficiaries of this new consumer trend, local small and medium-sized enterprises have everything needed to profit from the growing demand for online shopping.
Belgians, who have been unable to leave their homes, have discovered and ordered regional products, creating new long-term development opportunities for SMEs online.
Developed in association with Shopitag, bpost’s touslesmagasinsenligne.be platform takes care of the e-commerce process including creation of a webshop, online payments, delivery, advertisement on social networks and assistance from bpost and Shopitag in the sales process.
4. FedEx Office and Canva Redefine What’s Possible with Launch of Digital Content and Design-to-Print Marketplace
FedEx Office, a world-class provider of convenient, state-of-the-art printing, packing and shipping services and subsidiary of FedEx Corp. (NYSE: FDX), and Australian-born online design platform Canva, the leading content and creative design platform, have joined forces to create a digital design-to-print marketplace making it easier for businesses to create the professionally printed materials they need to get back to business quickly and safely.
The new alliance brings together, for the first time, the nationwide network of FedEx Office stores with the world’s fastest growing online design platform from Canva, which offers millions of images and illustrations, an extensive library of templates, and a simple drag-and-drop interface. Together, FedEx Office and Canva empower business owners and consumers to design virtually anything and print at more than 2,000 FedEx Office locations across the U.S.
“Small and mid-sized businesses across the nation are working to reopen their doors, and we are here to help them at a time when they have limited resources and a significant challenge to reconnect with their customers,” said FedEx Office EVP and Chief Operating Officer Kim Dixon. “We understand what they need, and we are uniquely capable of providing both custom materials and ready-to-print signs and graphics that support their back to business plans.”
One in five small business owners said external marketing and communications are some of the major challenges they are facing as they look to reopen, according to a new survey from FedEx Office.* They have new print needs as they update their policies to create a safe environment for customers and employees, but they don’t have big budgets to spend. FedEx Office and Canva offer the solution. Choosing from Canva’s extensive library of customizable drag and drop designs and content that includes stock photography, illustrations and fonts, customers can create their own professional-looking flyers, postcards, disposable menus and more from fedex.com on any device, with next day printing on many requests available at their local FedEx Office store.
“We’re thrilled to bring the power and simplicity of Canva to FedEx Office customers,” said Canva Co-Founder and Chief Operating Officer Cliff Obrecht.
“With Canva we set out to democratize design; this alliance combines the depth and variety of Canva’s design and content library with the reach and expertise in print of FedEx Office, to empower the community to create and communicate with ease.”
In addition to the flexibility to design their own materials, small businesses can choose from FedEx Office ready-to-print “We Are Open” storefront banners and new hours of operation posters, as well directional floor signage available in English and Spanish to designate how customers can maintain a safe distance from other shoppers.
· More than 80% of consumers want to know about changes a business has made to its operations as a result of the coronavirus outbreak.*
· Approximately 60% prefer to receive professionally printed mailers about changes to hours, policies and safety procedures.*
FedEx Office also continues to offer the standard services and operations that businesses and consumers need as they get back to business, including:
· Retail store locations: Printing, packing and shipping services, as well as access to faxing, scanning, computer rental and free Wi-Fi in a majority of the 2,000+ FedEx Office locations
· SameDay City: Pickup and drop-off services available within hours to deliver everything from medical supplies to office equipment
· Hold at FedEx Location: Deliveries can be securely held for pickup at FedEx Office retail stores, FedEx shipping locations and more.
5. More controls and an increase in the minimum wage
Switzerland's annual report on the postal market, published today by the supervisory authority, attests to Switzerland's high quality basic services.
The employees are particularly interested in how PostCom performs its control activities regarding working conditions. syndicom expects PostCom to closely monitor the booming market of private postal service providers. In addition, syndicom demands an adjustment of the prescribed minimum wages.
Since PostCom 2019 had a minimum wage for the postal market by ordinance, the authority has been controlling wages for postal services in Switzerland on a comprehensible scale. It has already identified the first offenses and initiated sanctions. Syndicom welcomes the announcement by the new supervisory authority president to step up control activities.
Increase minimum wage
The willingness to design of the new authorities is evident. But syndicom is convinced that the minimum wage of CHF 18.27 an hour is far too low. Matteo Antonini, sector manager at syndicom, said: “You can't live decently with such an hourly wage in Switzerland. This is state-authorized wage dumping. The minimum wage urgently needs to be revised upwards. » syndicom proposes a revision of the regulation, in which a market segmentation is carried out and the minimum wages are adjusted accordingly.
Actively regulate the market
Due to the growing online trade, more and more players are appearing in the logistics sector. With such a competitive market, there is a risk that competition will be fought over working conditions. The sufferers are the weakest links in the chain, i.e. the employees.
The supervisory authority must prevent this and actively regulate the market for private postal service providers. The best implementation and implementation of fair working conditions is guaranteed by generally binding collective employment contracts. This is not PostCom's competence.
But wherever mail items are delivered, postal service providers must be encouraged to negotiate collective agreements. PostCom can control this and syndicom expects the authorities to take an active approach.