Formulated by UNI AproPost and Logistics Sector
1. UPS to add Gary to air network. May 14, 2020.
2. “Poste Italiane has faced the crisis with a robust financial profile”..
3. Austrian Post and the solar trailersMay 12, 2020.
4. CUPW calls on the government to urgently protect gig economy workers. May 11, 2020.
5. An entire team lends a hand. May 08, 2020.
1. UPS to add Gary to air network
May 14, 2020
UPS will add Gary/Chicago International Airport (GCIA) to its express air network on November 2 this year in time for the peak holiday shipping season.
UPS will use an Airbus A300 with a payload of 60 tons on the route to the UPS Worldport air hub in Louisville, Kentucky.
Each weeknight, the A300 will fly from Gary to Louisville and return the next morning with express shipments scheduled for delivery later the same day.
Brendan Canavan, UPS Airlines president, said, “The Gary/Chicago International Airport is well-positioned to add additional capacity and flexibility to the UPS network, helping businesses in Northern Indiana and the Chicago area compete at e-commerce’s fast pace as they serve their customers.”
Timothy Fesko, chairman of the GCIA board authority, said, “UPS expanding its services to GCIA provides the airport with a critical competitive advantage and solidifies its role as the Chicago region’s third regional airport. This is the latest private sector investment bolstering our operations capability and allows the airport to provide critical benefits to the Chicago metropolitan area.”
UPS expects to employ 60 people at the airport including ground handlers, administrative staff, maintenance technicians and management employees.
The facility lease includes 14,000ftof office space in the passenger terminal and a 150,000 ramp area with space to park two A300s.
2. “Poste Italiane has faced the crisis with a robust financial profile”
May 13, 2020
· Lower revenues : € 2,755 million (-3% compared to the first quarter of 2019); normalized revenues 1 of € 2,456 million (-4.4% compared to the first quarter of 2019)
· Operating expenses Total : € 2.315 billion (+ 4% compared to the first quarter of 2019) with an increase of the Non-HR costs, in January and February, for more business activity and costs one-off of € 23 million in March to facing the emergency
· Operating result (EBIT) : € 441 million (-28.6% compared to the first quarter of 2019) determined by lower revenues due to the lockdown and one-off costs to cope with the emergency
· The Total Financial Assets (TFAs) amounted to € 539 billion (+ € 2.6 billion compared to December 2019), with a solid retail net inflow of € 5.7 billion, driven by monetary funds in a volatile market
· Solid regulatory capital ratios : BancoPosta’s CET1 Ratio of 18.0% and Poste Vita Insurance Group Solvency II Ratio of 226%, above managerial ambitions of 200% throughout the plan period
· Solid liquidity position and cash generation , with a limited and balanced debt profile over maturities
· Correspondence, parcels and distribution : growth in parcel revenues, with volumes that reached peaks normally recorded on Black Friday and during the Christmas period. The contribution of flows from China has doubled
· Payments and mobile : the integrated strategy between telco services and payments is in line with the growth in the use of digital channels and at the same time takes advantage of the synergies between the various segments
· Financial services : renewed commercial initiatives to adapt the service model to the “new normal”, also thanks to remote consultancy
· Insurance services : positive quarterly performance that benefited from the strong commercial attention dedicated to multi-branch products in 2019 and from the growth in the Non-Life business opportunities through the new modular offer
Matteo Del Fante, CEO and General Manager of Poste Italiane, commented: ” In extraordinary periods like this, my thoughts go to the communities and people affected by COVID-19. Thanks to the commitment and sense of duty shown by our employees, Poste Italiane quickly adjusted its operations, to guarantee essential services to our customers and provide the widest support to the country, in line with its role as a strategic backbone for Italy.
“Although the performance of 2020 was impacted by the lockdown, recent events have accelerated key emerging trends and confirmed the strategic direction of the Deliver 2022 Plan. Poste Italiane has faced the crisis with a robust financial profile, with a solid balance sheet and strong capacity to generate liquidity thanks to our profitable business.
“During this unprecedented situation, we protected our employees, sanitised corporate buildings and fleets, provided personal protective equipment and reduced physical presence in post offices, sorting and distribution centers. Agile work has been activated for most of the headquarters staff, reaping the benefits of our past IT investments.
“Our loyal customers continued to benefit from uninterrupted services. We have taken important measures to protect them, taking advantage of our exclusive multichannel distribution model, consisting of post offices, third party networks and our digital platform.”In this way, we continue to involve customers in different but complementary ways in all the segments in which we operate.
We have supported our communities, also with dedicated social initiatives, by collaborating with institutions. Throughout its history, Poste Italiane has always been present for its customers and for the community. During this crisis, we continued to support all our stakeholders, strengthening our reputation. Poste is a system operator; our role has become more important and this will translate into a stronger and more sustainable business. Together, we will be up to the challenge.
May 12, 2020
Austrian Post is testing the use of solar panels on its trucks.
Since the beginning of March, three trucks have been equipped with solar panels. The solar modules generate electricity, which is fed directly into the battery and used for power consumption in the vehicle.
The truck’s electrical system is operated in an energy-saving manner: sensors, indicator lights and even air conditioning systems are supplied with the necessary energy.
While the truck is on the road, using solar energy leads to fuel savings and reduced emissions. The retrofit also extends the life of the vehicle battery, enabling a more resource-efficient handling of the materials built into it.
The solar panels are 3mm thick and weigh about 10kg. According to testing by partners, fuel savings of up to 5% per truck are possible.
The solar installations and conversions were made in February, and the trucks will continuing testing the technology for the rest of 2020.
Austrian Post has been delivering all of its items CO2-neutral since 2011. With around 1,750 electric vehicles, Swiss Post now has Austria's largest e-fleet.
4. CUPW calls on the government to urgently protect gig economy workers
May 11, 2020
On Monday, May 11th, Foodora Couriers will work their last day as the company will officially exit the Canadian market. The Canadian Union of Postal Workers (CUPW) is fighting to ensure Foodora takes responsibility for its workers and demands that the Canadian federal government immediately intervene to protect vulnerable gig-workers, ensure couriers, including undocumented workers, are paid severance, and have adequate income supports.
There are over 1300 Foodora couriers (Foodsters) in the GTA, and over 3000 riders and drivers for Foodora across Canada. From the beginning of the COVID-19 pandemic, despite couriers continuing to deliver as essential workers, Foodora has shown disregard for basic health protections with only “optional” distance delivery services, but never introduced measures to ensure its workers were safe. Workers never received any personal protective equipment, even as they delivered cold and flu medicine to customers.
“We have now seen the true face of the gig economy. Employers can pull up and leave without consequence. The fight isn’t over though, and Foodsters United will pursue every means necessary to protect those former foodora couriers and push the government to ensure these workers do not suffer financially,” explains Ivan Ostos, a dedicated Foodster.
Delivery Hero, the wealthy multinational parent company to Foodora, revealed their revenue has nearly doubled in the past year. Delivery Hero boasted these gains the day after Foodora announced its exit from the Canadian market due to alleged financial trouble. Foodora also owes Canadian business owners and creditors, including CRA and Workplace Safety and Insurance Board over $4.7 M. Delivery Hero is also named as a creditor with a large amount, however couriers themselves are not currently listed as creditors that are owed in this process.
The decision to leave Canada comes in the middle of a global pandemic, and two months after Foodora couriers became the first gig workers in Canada to win the right to unionize.
CUPW is calling on the Canadian government to hold this multinational corporation accountable as it tries to skirt its responsibilities towards workers in Canada.
“The federal government has a role to play in Bankruptcy proceedings in Canada – they can and must insist that couriers be paid severance in full. The government must ensure access to all income supports to all vulnerable gig workers,” says Jan Simpson, National President of CUPW.
Foodora couriers include some of the most vulnerable workers in the country. The precarious job market pushes them to work as many hours as possible to cash out at the end of the week so that they can feed their families. Foodora couriers will now be left without severance pay, as Foodora continues to insist on considering couriers “independent contractors” despite the Ontario Labour Relations Board ruling that Foodora couriers are dependent contractors. As it stands, couriers are also not eligible for the federal Wage Earner Protection Program unless the Minister of Labour recognizes couriers as misclassified workers. The Canadian government must ensure all Foodora Couriers have access to emergency support during this pandemic, as Foodora and Delivery Hero have shamefully exploited the vulnerability of low-income, newcomers, and student workers, and now intend to walk away from their responsibilities.
5. An entire team lends a hand
May 08, 2020
Annette Vogel and her 50-strong team are responsible for the processes and systems in delivery at PostMail. When letter delivery came under severe strain, everyone made a big effort to lend a hand – whether directly with operations or by ensuring day-to-day business continued to run smoothly from a home office environment.
There was a shortage of staff in delivery at PostMail in March. Some of those absent belonged to at-risk groups, while others had to look after their children or were ill. Annette Vogel made an appeal to her team even before Swiss Post’s internal coronavirus jobs board was launched at the end of March : “Anyone willing to help out in delivery, enter your name in the list,” was the message from the Systems and Processes Team Leader at PostMail which she put out via WhatsApp.
Many employees were keen to help: 29 signed up and 23 colleagues have since been performing various duties for delivery in Thun, Spiez, Lausanne, Sursee, Winterthur, La Chaux-de-Fonds and other locations in Switzerland. Whether it was preparation, the delivery of large parcels, letters and bags of vegetables or in the back office, the support was very much appreciated everywhere.
Not left in the lurch
“We’re responsible for the processes and systems in delivery at PostMail which means we’re probably closer to operations than any other department. Helping our colleagues and not leaving them in the lurch goes without saying in my view and sends out the right message to operations,” explained Annette Vogel. She herself organized and coordinated the work that was so important for the modified operations. “The situation changed very rapidly and it was not always easy to keep track of developments and reconcile everything.”
Besides the odd sore finger from sharp-edged parcels, the team will take with them the great appreciation of their colleagues in delivery for the tremendous commitment displayed. “They adapted extremely quickly to the extraordinary situation and the modified working processes and carried out their tasks rapidly with great dedication, team spirit and good humour to the usual quality standards despite social distancing,” underlined Jürgen Kauer, who was working at the delivery point in Spiez.
Extraordinary days of work
These were extraordinary days of work for the employees of PM50. Markus Steinmann, for example, started at 6.00 a.m. and prepared two small rounds of around 420 households. After a short break, he started on deliveries using an electric tricycle and trailer but only did one of the two rounds himself. He delivered all letter mail, including registered items, and small parcels to take the strain off PL. Of course he also took the Nespresso bags back to the delivery point for recycling.
His shift ended after the round, generally between 10.30 a.m. and 11.30 a.m. (depending on the consignment volume). In the afternoon, he worked from home, dealing with his other tasks and keeping in touch with his team.
To enable colleagues to lend operations a hand, other members of the team, unable to help with deliveries due to their personal circumstances, took over some of their tasks. They ensured that day-to-day business (support, training, development, building management etc.) was maintained and that progress was made on projects despite the extraordinary situation. “I’m extremely proud of my colleagues for the way they rose to this challenge without any fuss and made a major contribution in delivery. But my thanks also go out to all those who did extra work from home due to the coronavirus,” explained Annette Vogel. Everyone mucked in together.
Formulated by UNI AproPost and Logistics Sector
1. NZ Post welcomes its shareholder's confidence in its future. May 14, 2020.
2. Posti’s survey: B2B buyers believe in much faster growth of B2B e-commerce than B2B sellers. May 13, 2020.
3. DP DHL says the outlook is cloudy as forwarding revenues take a hit. May 12, 2020.
Emirates Post: e-commerce accounts for one in three deliveries in 2020.
5. Working From Home agreement: Royal Mail Customer Experience. May 11, 2020
1. NZ Post welcomes its shareholder's confidence in its future
May 14, 2020
Support for NZ Post in the Government’s 2020 Budget is a welcome signal of confidence for the business, its essential workers and valued customers, and recognises NZ Post’s key role in the economy and community, Chief Executive David Walsh said today.
“NZ Post mail and parcel services matter to New Zealand – we deliver what people care about. We are preparing for the future, while taking into account the impact of COVID-19.
"We’re proud of the role we play in New Zealand’s future, we have a good plan, and it’s standing us in good stead. The Government is backing its state-owned enterprise, NZ Post, to continue to be a successful and valued part of the economy and community.”
The funding for NZ Post as part of the Budget announcements includes:
· $130 million over three years to support the continued service delivery and future of mail services
· An up to $150 million equity injection from NZ Post’s shareholder to recapitalise and strengthen reserves from the Government’s COVID Response and Recovery Fund
“On mail, we have been managing the rapid fall in the number of letters being sent for many years. Delivering mail is a core part of what we do, it connects so many New Zealanders and it matters to them.
However, we can’t solve the future of mail services on our own. The Government funding will allow us to continue to provide a nationwide mail network to around 2.5 million addresses across urban and rural New Zealand at current service levels, while we work closely with Government on a longer-term solution.
“On parcels and courier services, we know that online shopping will continue to grow – even with the uncertain economic times with COVID-19. We had been planning to invest in that future with additional core infrastructure that will allow us to meet the needs of our customers and respond to more online buying and selling. We will now be able to invest and build with confidence.
“We are proud of the vital role our workforce of around 6,500 plays in connecting New Zealanders and underpinning the economy which was highlighted with our people being essential workers during the COVID lockdown period.
“Like so many other New Zealanders and businesses we don’t know what the long-lasting impacts from COVID-19 will be. We have lost tens of millions of dollars of revenue from this global pandemic. The equity injection provides NZ Post with improved financial resilience. We will continue to keep the purse strings tight as we manage our costs, expenditure and efficiencies.”
2. Posti’s survey: B2B buyers believe in much faster growth of B2B e-commerce than B2B sellers
May 13, 2020
According to Statistics Finland, the total value of online sales by Finnish companies was EUR 23 billion in 2018. Nearly two thirds (65%) of this value was generated by B2B e-commerce. In the future, the role of B2B e-commerce may be even more significant as B2B sellers and buyers think that B2B e-commerce will grow clearly in Finland during the next five years. However, buyers’ estimate of the growth pace of e-commerce is much higher than sellers’ estimate.
This, among other things, was revealed by the recent survey conducted by Posti and Kantar TNS, which analyzed the current state of Finnish B2B e-commerce as well as the expectations for the next five years.
Seller organizations were asked to estimate how much of their sales will be digital sales or B2B e-commerce in five years. They believe that in 2025, digital sales and B2B e-commerce will account for an average of 33 percent of the company’s total sales. The growth forecast is moderate considering that the same companies estimate that the current share is on average 21 percent.
On the other hand, B2B buyers believe that in 2025, already more than half (51%) of the company’s all indirect purchases will be made through digital channels.
Nearly two thirds (64%) of buyer companies estimate that they will make more purchases in B2B online stores in the next five years.
According to B2B buyers, the role of e-commerce in B2B trade will become stronger whereas the role of physical stores and sales representatives will decline. Nearly half of buyers estimate that they will reduce visits to physical stores (44%) and make fewer purchases through sales representatives (45%) in the next five years.
“In the future, B2B buyers will be increasingly willing to do business online. According to the survey, they are also ready to change their purchase procedures quickly. Experiences and expectations from B2C e-commerce also influence B2B e-commerce: the customer expects the online store to be fast and easy to use. The price must be right but what seals the deal is the smooth purchase and delivery process,” says Matti Pohjanheimo, Business Manager, Parcel & eCommerce at Posti.
Companies use many kinds of purchasing methods and, at the moment, the role of traditional methods is still relatively significant in B2B trade. According to Posti’s survey, the most common way to make indirect purchases is to place an order by phone or by email. A total of 85 percent of the responding companies use these channels.
However, more than two thirds (68%) of B2B buyers also use B2B online stores. On the other hand, three in ten seller companies reported not having any digital B2B sales channels.
3. DP DHL says the outlook is cloudy as forwarding revenues take a hit
May 12, 2020
Deutsche Post (DP) DHL said the coming months are difficult to predict due to the coronavirus outbreak, while its airfreight forwarding business saw revenues and profits decline in the first quarter.
DHL Global Forwarding saw its first quarter airfreight revenues fall by 3.9% year on year to €1.1bn, volumes declined by 9.5% to 448,000 tonnes, but gross profit climbed by 0.9% to €226m.
Lower revenues were caused by a demand decline — as consumer spending slowed in line with the coronavirus — while higher airfreight rates boosted margins.
The overall forwarding business, including its ocean and road operations, saw first-quarter revenues decline by 4.1% to €3.8bn and earnings before interest and tax (ebit) slipped 27% year on year to €73m.
“The [forwarding] division is confronted with a severe shortage of available market capacity due to the pandemic, owing for example to the cancellation of passenger flights,”
DP DHL said. “With declining volumes, the capacity shortage led to a positive gross-margin development in airfreight.”
The company said that its forwarding business in China showed signs of picking up in March, but Europe and North America saw downturns at the end of the reporting period.
Meanwhile, the overall DP DHL business saw first-quarter revenue improve by 0.9% to €15.5bn, ebit came in at €592m and profits dropped by 59.7% to €301m.
This includes a pandemic-related negative earnings impact of €210m, as well as negative effects of €234m incurred in the first quarter to realign the Group’s StreetScooter activities.
Last year the company also benefited from the transfer its supply chain operations in China to SF Holding in a ten-year strategic partnership.
If all of these effects are stripped out, underlying ebit would have been roughly in line with a year ago.
The company said it was protected by its “broad geographic footprint and comprehensive portfolio of logistics solutions — ranging from international express services, global air and ocean freight transport to warehousing, e-commerce solutions as well as post and parcel solutions in Germany”.
“Since the coronavirus began spreading around the world, various activities in the different regions performed better and in some cases worse than originally planned,” it added.
“Thanks to the great diversification in both the geographical areas in which the divisions operate and the industries they serve, the divisions were able to operate profitably even in a challenging environment, thus demonstrating their resilience in times of crisis.”
However, the company declined to provide an outlook for the rest of the year.
DP DHL chief financial officer, Melanie Kreis, said: “In the first quarter our business was less impacted by the pandemic than many others. It is nonetheless extremely difficult to predict the effects of the pandemic on the world economy or on our business operations over the coming months. That is why we withdrew our earnings guidance for 2020 on April 7.
“It is still too early to issue a reliable forecast for the rest of the year. As soon as a more reliable assessment is possible, we will communicate a new forecast.”
In management comments, the company added: “Lock down measures are now being reduced carefully at different levels and speeds across individual countries.
“This should also lead to a stabilisation and progressive resumption of economic activity and hence trade flows.
“We are strongly confident that logistics is an essential capability that is needed in any form and shape of recovery from the lock down situations.
“However, while these are encouraging perspectives, the shape and timeline of any economic recovery – and actually the further development of the virus itself–remain too uncertain to provide any reliable full-year forecasts today.”
4. Emirates Post: e-commerce accounts for one in three deliveries in 2020
Since January 1, 2020, Emirates Post has delivered close to 2 million shipments to customers on behalf of government and banking organisations as well as e-commerce retailers both locally and from around the world.
E-commerce is the most significant contributor to the jump in last mile deliveries, accounting for one in every three deliveries so far in 2020. In line with the steady global rise of e-commerce over the past few years, Emirates Post has ramped up its last mile delivery capabilities to better support this fast-growing sector. It has implemented a series of innovative service solutions to support key players in the sector, such as Amazon, Landmark and Mumzworld.
HE Abdulla Mohammed Al Ashram, Acting Group CEO of Emirates Post Group Company commented: “We identified last-mile delivery as one of our key growth areas last year and have been bolstering our network to ensure that we have the reach and resources to cater to the demands of online retailers as well as government and business entities. This is the future of post and it is critical that our processes and systems have the agility to cater to local and international demand, whilst offering the best in pricing and efficiencies to our clients.”
Over the past 12 months, Emirates Post has rolled out simplified integration processes and cash-on-delivery, in addition to establishing a hyperlocal network and a sustainable capacity model to support the rapidly increasing volume demands. With this new model, it can onboard new clients and support delivery of essential and non-essential retail items in under a week. The combined effort has allowed Emirates Post to deploy 99.8% of the shipments on the delivery date promised on purchase, with its on-time delivery track record exceeding 96% in the UAE.
5. Working From Home agreement: Royal Mail Customer Experience
May 11, 2020
Almost three-quarters of Royal Mail Customer Experience employees are currently working from home – and although the company has said they may return to the office if they wish to, assistant secretary Andy Furey has said that he expects the vast majority to continue as they are for the foreseeable future.
Speaking the day after Prime Minister Boris Johnson announced some minor changes to Covid-19 measures that have been in place for nearly two months, Andy said: “To successfully migrate nearly 800 people from the office to a home working environment has been a huge task and I honestly can’t envisage an early rush back to the office.
“In fact, now that we have in place a clear set of operational procedures and guidelines, with our members having the relevant equipment they need, I’d expect the numbers working from home to increase if anything,” he commented.
This morning’s postal executive committee gave its unanimous approval to a report from Andy setting out in full the ‘Customer Experience – Working From Home Strategy’, which has been drawn up by the company in conjunction with the CWU.
“Susan Howlett, the Customer Service director and myself have held a number of remote meetings during the course of this Covid-19 crisis and this has been supported by more site-specific conversations involving our CWU reps at our six call centres – Bangor, Dearne, Doxford, Glasgow, Plymouth and Stoke – and the local managers,” Andy explains.
“The agreed arrangements for working from home set out all of the necessary protocols, procedures and arrangements for continuing with the operation during this period – and most importantly, it ensures the health and safety of all.”
The agreement does allow members the option of choosing to work from the office – and it also provides for those working from home to arrange to come into their office if there is equipment that they need to pick up.
“I’m grateful to our reps for their efforts and support and to all our hard-working Customer Experience members – also, credit should be given to CE managers for their inclusive and collaborative approach to this situation with our members’ well-being and health and safety being the absolute priority.
“It’s also particularly timely, with the unfortunate element of doubt that yesterday’s Prime Ministerial statement introduced, that it’s absolutely clear where our Customer Experience members stand in this regard.”