Formulated by UNI AproPost and Logistics Sector
1. Special arrangements for mail traffic to China. February 20, 2020.
2. E-commerce helps Posten Group grow in 2019. February 19, 2020.
New agreement to enhance cooperation between airlines and postal operators.
4. Japan Post announces financial results for Q3. February 17, 2020.
5. FedEx Statement on Coronavirus. February 17, 2020.
6. APWU Responds to White House Budget. February 12, 2020.
1. Special arrangements for mail traffic to China
February 20, 2020
Posti is rerouting its mail traffic to China due to flights being cancelled because of the coronavirus. For now, mail can be transported to China about once a week. The delivery of items will be delayed due to the use of special schedules and routes.
According to China Post, its operations in China are running almost normally. However, delivery days have been reduced to around two or three per week in many areas of China due to the risk of infection.
Items’ tracking information will be incomplete due to the special arrangements.
The delivery of online purchases from Chinese online stores to Finland will also be delayed. Some of the items will be delivered as usual, but rerouting as well as lack of stock in Chinese online stores will cause delays also for items being delivered to Finland.
According to the Finnish Institute for Health and Welfare, receiving items from China is safe.
2. E-commerce helps Posten Group grow in 2019
February 19, 2020
Revenue for Norway’s postal operator Posten Group increased by 1.3% to Nkr 24.2bn (US$2.6 bn) with e-commerce growth making up for mail declining.
Adjusted operating profit was up to Nkr 808m (US$87m) kroner but operating profit measured as EBIT was down to Nkr 162m (US$17.5m), mainly due to restructuring costs.
E-commerce helped the logistics segment grow, with market growth and digital services combined with more cost-effective operations in the package and freight network improving profitability.
To meet growth and offer attractive services to Nordic online stores, Posten continues to add capacity in both Sweden and Denmark.
Tone Wille, CEO of Posten, said, “We are pleased with the development in 2019. The growth, especially in the e-commerce market, is due to the development of services and digital solutions that meet customer needs. We are accelerating our innovation efforts and are shaping the delivery network of the future. Last year, we expanded our delivery network in Norway, Sweden and Denmark with almost a thousand new delivery sites.”
Letter volumes declined by 9.9% and Posten will deliver mail every other day from July.
Packages will still be delivered every weekday in large areas of the country.
3. New agreement to enhance cooperation between airlines and postal operators
The aim for both IATA and IPC is to promote the development and expansion of safe, secure, accessible and high-quality airmail and air cargo services to help their respective members provide quality solutions aligned to consumer needs.
“International e-commerce is growing at around 20% per year, leading to rapidly changing market conditions for airlines and posts. Ensuring customers get their packages on time while safety and security in postal air transport is maintained is the main priority for posts and air transport operators alike. Cooperation across the supply chain is a must and our MoU with IPC is an important step toward strengthening our activity in this area,” said IATA’s Director General and CEO, Alexandre de Juniac.
“For more than 10 years, the cooperation between airlines and postal operators has enhanced processes and increased visibility of airmail transport. With this agreement, we want to further strengthen our ties and identify further opportunities for cooperation and joint developments. Both of our sectors can win from a reinforced cooperation in terms of competitiveness and quality of service. Ultimately, this agreement will benefit consumers through more reliable and faster delivery of cross-border mail and packets transported by air,” said Holger Winklbauer, CEO of IPC.
IATA and IPC intend to work together on seven specific areas:
1. Improving the security, handover, carriage, delivery and settlement of airmail between postal operators and air carriers. This includes e-commerce, economic and commercial matters.
2. Developing and maintaining industry standards and procedures as well as services and solutions for both physical flows and electronic data interchange relating to airmail.
3. Aligning existing services and solutions, along with developing new ones to ensure harmonised compatibility and efficient application of resources.
4. Finding technology-based standards and solutions for piece level tracking in airmail.
5. Addressing volumetric challenges, through initiatives such as Air Packet Box, and allocation and booking procedures for airmail.
6. Developing regional onboarding initiatives and global campaigns on airmail process optimisation and standardisation.
7. Improving the involvement of ground handlers and other industry stakeholders on matters concerning airmail.
4. Japan Post announces financial results for Q3
February 17, 2020
Japan Post Group has released its financial results for the first nine months of 2019 ending on December 31, 2019. Japan Post Holdings reported revenues (stated as ordinary income in the company’s statements) of ¥*9,054.5bn, a Y-o-Y decrease of 5.5%. The Group reported an operating profit (stated as net ordinary income) of ¥688.8bn, a year-on-year increase of 7.8%.
In Japan Post Company’s Postal and Domestic Logistics business, revenue (stated as operating income) totalled ¥1,601.6bn, a Y-o-Y increase of ¥12.4bn, or 0.8%. Operating Profit (stated as net operating income) was ¥119.3bn, a Y-o-Y increase of ¥32.3bn, or 37.3%. The increase was primarily due to a continuing increase in the volume of Yu-Packet handled and a rise in income from the parcel field resulting from the impact of the revision of price per unit.
Revenues (stated as operating income) in the International Logistics business, Toll Holdings Limited, totalled ¥486.4bn, a Y-o-Y decrease of ¥48.2bn, owing to a decrease in the volume of Global Forwarding and an overall slowing of the global economy, especially the Australian economy and tensions resulting from the US-China trade war. EBIT recorded a decrease of 12.4% to produce a loss of ¥5.9bn, this was primarily due to an increase in personnel expenses.
5. FedEx Statement on Coronavirus
February 17, 2020
FedEx is adhering to all regulations and guidelines from government authorities related to containment of COVID-19. These work and travel restrictions may affect shipments inbound and outbound to/from Wuhan and other impacted cities within Hubei Province, as well as shipments moving within those cities. Customers can visit fedex.com to check the status of their shipments.
FedEx Express continues to operate inbound and outbound flights to/from China as local conditions and restrictions allow, and we are taking recommended precautions in terms of pilot, crew and customer health and safety.
The safety and well-being of our team members is our top priority, and we are closely monitoring guidance by the Centers for Disease Control (CDC) and World Health Organization (WHO). In areas where outbreaks have been reported, FedEx is disinfecting facilities and supplying surgical masks, hand sanitizer and alcohol wipes to team members and vendors. In addition, all FedEx and vendor employees reporting to work at Mainland China FedEx gateways and ramps are temperature checked when reporting to work. We are also encouraging our team members to take any signs of illness seriously and seek medical attention as needed.
6. APWU Responds to White House Budget
February 12, 2020
On Monday, President Trump issued his budget for the next fiscal year. Among its proposals were the entirety of the recommendations of the 2018 White House Task Force on the Postal Service, which include service cuts, lower pay and for postal workers and accelerated outsourcing and privatization of postal work.
“The President’s Budget is another broadside attack by this White House on postal workers, our union and our customers’ well-deserved right to a public Postal Service that meets their needs,” said APWU President Mark Dimondstein. “It doubles down on the Task Force proposals which would deteriorate the mail, lead to the loss of thousands of decent jobs, and set the Post Office up to be sold off to the highest bidder.”
Just last week, the House of Representatives passed the USPS Fairness Act, with overwhelming bipartisan support. The bill would repeal the prefunding mandate which led to the manufactured financial crisis in the Postal Service. Nonetheless, the White House budget calls on USPS to resume prefunding payments, no matter their impact on postal finances.
“Simply put, this is an insult to the hundreds of thousands of dedicated and hardworking postal workers who make the Postal Service the most efficient post in the world and this country’s most trusted institution,” continued Dimondstein. “Our collective struggle to defend the public Postal Service and our jobs must continue, from the workroom floor to the streets, from the ballot box to Congress and the White House.”
The budget also proposes slashing social safety net programs, eliminating or reducing CSRS and FERS cost of living increases, increasing employee retirement contributions, and changing the way retirement is calculated. “This budget is a blueprint of the administrations priorities and it is clear they do not value the dedicated postal and federal workforce, seniors, or those in need of assistance” said Legislative and Political Director Judy Beard. “As Congress develops their own budget, we will remain vigilant and work with our bipartisan allies to fight back against the attacks laid out in the White House budget.