POSTAL NEWS
No 63-2020
Formulated by UNI AproPost and Logistics Sector
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1. Posti Group 1–6/2020: Postal volume decline at record level – fast actions taken to mitigate profitability impact.August 06, 2020.
2. August bonus boost for Post Office Admin and Supply Chain members. August 05, 2020.3. Bpost – Belgian Post: We are still evolving in a very uncertain world.August 05, 2020.
4. Japan Post to sell Australia's Toll Holdings: report. August 04, 2020.
5. AliExpress to shorten delivery times in Europe by 30%.August 04, 2020. |
1. Posti Group 1–6/2020: Postal volume decline at record level – fast actions taken to mitigate profitability impact
August 06,2020
Posti Group Corporation Half-Year Financial Report January–June 2020
April–June
Financial highlights
· Net sales were at the previous year’s level, EUR 392.3 (393.8) million.
· Adjusted EBITDA was EUR 34.5 (37.3) million, or 8.8% (9.5%) of net sales.
· EBITDA increased to EUR 34.2 (32.4) million, or 8.7% (8.2%) of net sales.
· The adjusted operating result decreased to EUR 3.1 (8.1) million, representing 0.8% (2.1%) of net sales.
· The operating result decreased to EUR 0.6 (3.2) million, representing 0.2% (0.8%) of net sales.
The figures in 4-6/2020 and 4-6/2019 are not fully comparable because the operations of Aditro Logistics have been included in Posti’s financials as of April 2020, but they are not part of the financials of the comparable period in 2019.
January–June
Financial highlights
· Net sales decreased by 1.8% to EUR 776.5 (790.4) million.
· Adjusted EBITDA was EUR 75.2 (77.9) million, or 9.7% (9.9%) of net sales.
· EBITDA increased to EUR 74.4 (68.8) million, or 9.6% (8.7%) of net sales.
· The adjusted operating result decreased to EUR 15.6 (20.3) million, representing 2.0% (2.6%) of net sales.
· The operating result improved to EUR 12.5 (11.2) million, representing 1.6% (1.4%) of net sales.
· Net debt to adjusted EBITDA was 2.0x (1.1x).
Operational highlights
· The global COVID-19 pandemic began to impact on Posti’s operations in March. Posti’s Parcel and eCommerce business group benefited from the growth of online shopping, while the demand for traditional postal services decreased even faster than previously due to the pandemic.
· The execution of Posti’s transformation continued:
o The combined net sales of Parcel and eCommerce as well as logistics businesses represented already 56% (51%) of the Group’s net sales.
o The parcel volume of Finland and the Baltic countries increased by 19% (8%). At the same time, the number of addressed letters decreased by 20% (14%) in Finland.
o The share of mail items covered by the universal service obligation continued to decrease and accounted for only 2.7% (3.4%) of all Posti’s mail items delivered.
o On April 2, Posti closed the acquisition of Aditro Logistics, a Swedish contract logistics company. The acquisition was in line with Posti’s ambition of expanding its geographical footprint.
The figures in 1-6/2020 and 1-6/2019 are not fully comparable because the operations of Aditro Logistics have been included in Posti’s financials as of April 2020, but they are not part of the financials of the comparable period in 2019.
Outlook for 2020 (unchanged)
The coronavirus situation makes the macro economic outlook extremely difficult to predict for the full year. Posti maintains its outlook for 2020, but because of these exceptional circumstances, Posti’s full-year outlook includes a significant level of uncertainty.
As a result of the increasing market uncertainty and expected impact of coronavirus on the Finnish and global economy, Posti’s net sales in 2020, excluding possible new acquisitions and divestments, are expected to decrease from the previous year. The Group’s adjusted operating result in 2020 is expected to increase from the previous year, when the postal strike had a significant negative impact on Posti’s results.
The Group’s business is characterized by seasonality. Net sales and operating result in the segments are not accrued evenly over the year. In Postal Services and consumer parcels, the first and fourth quarters are typically strong, while the second and third quarters are weaker.
TurkkaKuusisto, President and CEO
We could clearly see how the impact of COVID-19 accelerated the already steep decline of postal volumes even further. The number of addressed letters decreased by a record-breaking 24% in Finland in the second quarter. This obviously had a significant negative impact on Posti’s financials, and recovery actions were initiated immediately. The ongoing digitalization of our society, as well as the postal strike in 2019, had a big impact on Posti’s operations, but the COVID-19 situation further accelerated the volume decline. This has increased the pressure to accelerate Posti’s transformation.
To be able run our operations as safely as possible despite the COVID-19 situation, we have made several changes to our processes and to the way we work. This has impacted our operations and increased costs. Posti needs to ensure that its operations are competitive in all future scenarios. We can clearly see that our legacy cost structure is a major challenge for us in the rapidly changing world. We need to continue to address this and unfortunately it means different kind of actions within all our businesses and in our administration to secure our profitability.
The COVID-19 situation has significantly increased our parcel volumes. Since March this year, our daily, weekly and monthly parcel volumes have experienced a clear step change. This has had a positive impact on Posti’s result. We need to prepare for a new normal in our parcel operations as we expect that a substantial portion of future consumer purchases has permanently moved to online platforms.
Our freight operations were impacted by the effect of COVID-19 on the overall economy. Despite the challenging market environment, our freight operations continued to improve their efficiency in the second quarter.
Also, Transval’s operations continued to show improved efficiency and overall positive development for the entire business group. We are very pleased with the acquisition and the new markets this has brought to Posti’s transformation journey during the past 18 months.
The operations of Aditro Logistics, which has been part of the Posti family since April 2020, have been significantly affected by the COVID-19 situation. Even though the impact has varied between different customer segments, the overall impact on Aditro Logistics has been clearly negative. However, Aditro Logistics continues to follow its growth strategy. The integration of Aditro Logistics into the Posti Group has proceeded as planned, despite the COVID-19 situation. This new business segment is a vital part in Posti’s transformation and supports our goal to grow our logistics, parcel and eCommerce businesses.
Itella Russia continued its strong profit development. Under very difficult market circumstances, our Russian operations continued to improve the scope of their operations and to maximize profitability. This has been great work from the entire team in Russia.
Posti Team, i.e. all our employees, have demonstrated remarkable resilience and commitment during these unusual times. Unfortunately, we have had to introduce temporary layoffs and other measures to mitigate the situation financially. Even though we have been able to avoid mass layoffs, the majority of Posti’s employees have had to make personal sacrifices due to the exceptional situation.
I’m very honored and privileged to be the CEO of this team and to see how well our operations are coping, despite these exceptional times.
Source :https://www.posti.com/en
2. August bonus boost for Post Office Admin and Supply Chain members
August 05, 2020
“Dedication, hard work and excellent service” by hundreds of Post Office workers has earned them summer bonus payouts of just under £900, reports CWU assistant secretary Andy Furey.
Admin grades will pocket an extra £874.62 in their August salaries (pro-rata for part-time staff), while their Supply Chain colleagues are in line for £887.31 (pro-rata for part-time) – in what Andy has described as “a welcome recognition of their superb efforts.”
The two remuneration schemes differ slightly, but in each instance the payments are either fully or partly aligned to the Post Office’s EBITDAS (profit) target, which reached 97.18 per cent of target for the financial year 2019/20. For Supply Chain members, 50 per cent of the bonus is also based on quality of service and compliance targets, which were once again met this year.
“Our members in these two grades have done extremely well to get so close to the full bonus payment – and this is some good news in light of the awful pandemic” explains our CWU national officer.
“Despite all the difficulties encountered, our members have continued to provide an excellent service through their hard work and dedication and these bonus payments are a welcome recognition of their commitment.
“Well done everyone – and I hope this brightens your summer.”
Source :https://www.cwu.org/news
3. Bpost – Belgian Post: We are still evolving in a very uncertain world
August 05, 2020
bpost has released its second quarter 2020 results – growth driven by Parcels & Logistics performance in North America and Eurasia.
Second quarter 2020 highlights
· Group operating income at EUR 1,052.7 million, +12.5% compared with the same period last year and driven by strong Parcels BeNe and E-commerce logistics growth in both Europe and North America.
· Group reported EBIT at EUR 71.0 million Adjusted EBIT at EUR 75.6 million (margin of 8.1%).
· Mail & Retail
§ Reported EBIT at EUR 35.4 million. Adjusted EBIT at EUR 36.0 million (7.7% margin), down by -51.9% mainly from mail evolution (-17.7% underlying mail volume decline) amplified by COVID-19.
§ M&R COVID-19 impact estimated at EUR -37.0 million.
· Parcels & Logistics Europe & Asia
§ Reported EBIT at EUR 31.6 million. Adjusted EBIT at EUR 32.4 million (11.0% margin), up EUR 13.0 million (+67%) operationally excluding year-over-year negative evolution of terminal dues settlements. EBIT growth mainly driven by thriving e-commerce resulting in Parcels BeNe volume growth of +78.4%. Additional investments in parcels sorting capacity enable to structurally absorb higher peak volumes.
§ PaLo Eurasia COVID-19 impact1 estimated at EUR +13.1 million delivering customer needs in challenging times.
· Parcels & Logistics North America
§ Reported EBIT at EUR 14.2 million . Adjusted EBIT at EUR 17.6 million (5.0% margin), up EUR 18.1 million fully driven by Radial North America, which recorded high growth from existing customers and clients launched in 2019 (E-commerce Logistics operating income +53.5%).
§ PaLo N. America COVID-19 impact estimated at EUR +16.5 million accelerating its performance during the crisis.
· Total COVID-19 impact on Group EBIT estimated at EUR -9.5m for the second quarter 2020. Excluding COVID-19 and last year’s gain on disposal of the HQ building (EUR 19.9m), second quarter 2020 EBIT was favourably impacted by targeted cost containment actions and cost phasing towards the second half of 2020.
· Outlook 2020. Based on the current situation and facts, the initial 2020 Group adjusted EBIT guidance range of EUR 240-270 million is reconfirmed, if no second or important local lockdown in 2020 or any event deriving from COVID-19 uncertainties materialises.
· Dividend 2020. The Board decided not to grant a dividend on the results of FY20 to its shareholders. bpost Group remains fully committed to delivering sustainable shareholder returns. Given the high level of uncertainty that still remains in light of COVID-19 and its impact on the overall economy, bpost Group’s priority is in the current circumstances the strength of bpost’s balance sheet and cash reserves on the long term. A new dividend policy going forward will be decided by the Board when the longer term impact of the COVID-19 crisis becomes more clear.
Jean-Paul Van Avermaet, CEO of bpost Group commented: “We are still evolving in a very uncertain world. However, thanks to the considerable efforts of all our employees, the first half of the year allows us to reconfirm our initial 2020 group EBIT guidance.
Visibility remains low, and the broad economic impact of COVID-19 will likely only be felt over the coming years.
“COVID-19 has triggered an acceleration of the digitizing world we are operating in. This is materializing through a significant increase in e-commerce penetration, as witnessed by our huge second quarter organic parcels volume growth above 78% and the steep acceleration in our E-commerce logistics revenues, both in the US at Radial as in Europe. At the same time, these results also confirm that the diversification strategy that bpost Group has put in place over the last years is a sound one for a viable future.
bpost Group will remain an efficient mail operator in the domestic market, while growing in the areas of e-commerce logistics in Eurasia and North America, and capturing the strong development of last-mile parcels delivery in Belgium and The Netherlands. We continued to invest in e-commerce and parcel capacity in Belgium and abroad.”
François Cornelis, Chairman of the Board of Directors, continues: “Our prerogative under these exceptional circumstances, is to preserve a sound financial position in order to be able to face any new COVID-19 developments or downturn in the regional or global economies. Therefore, the Board of Directors has decided not to grant a dividend on the results of 2020 to its shareholders. bpost Group remains fully committed to delivering sustainable shareholder returns.
In light of the current circumstances the priority is the strength of bpost’s balance sheet and cash reserves on the long-term. A new long-term dividend and capital allocation policy will be decided by the Board when the longer-term impact of the COVID-19 crisis becomes more clear.”
Source : https://postandparcel.info/124875/news/post
4. Japan Post to sell Australia's Toll Holdings: report
August 04, 2020
TOKYO (Reuters) - Japan Post Holdings Co Ltd (6178.T) has decided to sell its Australian logistics arm Toll Holdings Ltd, a media report said on Tuesday.
In 2015, Japan Post acquired Australia’s transport logistics firm Toll for A$6.5 billion ($4.64 billion), making an ambitious bet to diversify overseas. But two years after the deal, it had to write down the bulk of Toll’s value only two years after the deal due to its weak performance.
Japanese business magazine Diamond reported that Japan Post had started sounding out brokerage firms this week to find advisors for the sale of the troubled Australian firm, citing multiple unidentified sources.
Japan Post plans to pick two brokerages, one Japanese and one from overseas, by August, the magazine added.
A spokesman for Japan Post Holdings declined to comment on the media report.
Source :https://www.reuters.com/article
5. AliExpress to shorten delivery times in Europe by 30%
August 04, 2020
AliExpress will shorten its delivery times in some parts of Europe by 30 percent. This is the result of a new air route AliExpress has announced. The commercial route between China and Spain will start this month.
The popular Chinese marketplace AliExpress is not only known for its cheap prices, but also for the long delivery times. With the coronavirus outbreak all over the world, these delivery times have only increased.
Launch of new air route
In an attempt to alleviate this situation and to improve the quality of its service in Spain, AliExpress has announced the launch of a new air route. This should make deliveries to Spain and neighboring countries up to 30 percent faster.
The commercial route between China and Spain was enabled by Cainiao Network (the logistics operator of the Alibaba Group) in association with the Volga-Dnepr Group. On July 14, the first flight went from Hong Kong to Madrid, carrying parcels from AliExpress sellers.
Delivery timeframe to be kept within 10 days
The flights will be operated via Liege in Belgium, which is another popular ecommerce destination within the VDG network. “The parcels will be quickly distributed all over Europe after arriving in Liege and Madrid, ensuring the delivery timeframes of the whole process from China to Europe are kept within 10 days”, the press release explained.
Starting in August, there will be three flights per week on the Hong Kong-Madrid route.
Source :https://ecommercenews.eu/
POSTAL NEWS
No 64-2020
Formulated by UNI AproPost and Logistics Sector
1. Digital freight platform Saloodo! is expanding to Turkey. August 06, 2020.2. New research by NZ Post shows online shopping grew 105% in Alert Level 3.August 05, 2020 3. PostNL: We scaled up capacity by 40%, proving the flexibility of our network.August 4, 2020.
4. Eesti (Estonian) Post updates postal code system of Tallinn and Pärnu. August 03, 2020.
5. UNI Apro East Asia Postal Unions build virtual solidarity during pandemic. August 03, 2020. |
1. Digital freight platform Saloodo! is expanding to Turkey
August 06, 2020
The intuitive and user-friendly digital solution was first launched in Germany in 2017.
· One-stop platform: Saloodo! connects shippers and carriers with a digital end-to-end solution for ordering and handling shipments
· The application is on the road to success and will soon be fully accessible in Turkish
· Collectively, the service has reached more than 30,000 shippers and over 12,000 carriers covering over 35 countries
Bonn - The logistics start-up Saloodo! remains on course for expansion and will now launch its platform in Turkey, bringing the digital road freight platform to yet another key region. The intuitive and user-friendly digital solution was first launched in Germany in 2017 and is already available in several other European countries, including Austria, Denmark, the Netherlands and Poland. Moving swiftly into emerging markets outside of Europe, the subsidiary of Deutsche Post DHL Group has already been introduced in the Middle East and Sub-Saharan Africa. Just as Turkey geographically and spiritually connects Europe and Asia, Saloodo! is connecting shippers and carriers via safe and transparent shipment contracts in a digital marketplace, bringing greater convenience and efficiency to yet another continent.
"After successfully entering the Middle East and the African continent, we are continuing our strategic growth by expanding to Turkey," explains Antje Huber, Managing Director Saloodo!, responsible for Marketing. Turkey is a key market for us. Besides being a gateway to Asia, we also see an increasing demand for smart logistic solutions in the country. We continuously work towards our vision of a world in which logistics are smart and digitalized, and we are therefore inspired to bring our innovative solution to life in more and more markets."
An efficient road freight network is key to international trade. Modern technology enables connected, transparent, and safe road freight operations. By providing all the freedom of an independent marketplace and the reliability and convenience of a digital freight forwarder, Saloodo! combines online freight exchange and digital freight forwarding in one platform. It is the first digital platform available in the region that offers a single reliable and easy-to-use interface through which shippers and transport providers can cooperate. Backed by DHL's global and regional footprint and expertise, all contractual relationships on the platform are organized via the existing local DHL entity, providing trust and peace of mind to carriers and shippers alike - a win-win situation.
"With real-time visibility, Saloodo! will inject greater transparency and efficiency into the regional road network, enabling shippers of all sizes - from small enterprises to large corporations - to find trusted and reliable freight carriers in Turkey. This, in turn, will help carriers manage existing fleets and optimize capacity with full truckload shipments. In addition, communication with drivers is simplified with our Saloodo! driver app, wherein all kinds of information - from order handling to drop-off - can be exchanged," adds Murat Kavrar, Managing Director DHL Freight Turkey.
Saloodo! also provides carriers with innovative functions that make their daily business routine easier and more efficient. The dynamic transport pricing calculator, which is based on real-time data and specially developed algorithms, helps carriers make their shipping offers more competitive.
The service has grown to serve more than 30,000 shippers and over 12,000 carriers across 35 countries.
Source : https://www.dpdhl.com/en/media-relations/press-releases/2020
2. New research by NZ Post shows online shopping grew 105% in Alert Level 3
August 05, 2020
New research by NZ Post into how the COVID-19 response has impacted the way Kiwis shop online, shows online shopping increased 105%* when the country moved into Alert Level 3, and may have changed the way Kiwis shop permanently.
Online spend peaked in late April, with New Zealanders spending over $200 million online as the country moved to Alert Level 3, and online retail reopened, according to NZ Post’s new eCommerce Spotlight research, conducted with Datamine. In Alert Level 3 shoppers could also have their ‘non-essential’ items purchased during Lockdown, delivered. This resulted in NZ Post receiving over 3.5 million parcels in the first two weeks of Alert Level 3 – about 200 parcels per minute.
“While this surge dropped off as life started to return to normal and more ‘bricks and mortar’ shops began to open, online shopping remains about 30% up on this time last year, with early indications signalling that COVID-19 has forever changed the way Kiwis shop,” says Chris Wong, General Manager of Business Marketing, NZ Post. “Buying your groceries and other everyday items online and having them delivered has become the new norm for many.
“Not being able to pop out to the shops meant that Kiwis looked online if there was something they needed, or wanted, to buy. Our research shows over 170,000 adult New Zealanders shopped online for the first time during the first six months of 2020. We saw people in the 60 plus age category take to online shopping, with a 62% increase in this group shopping online for just the month of May*.
“One of the trends Kiwi retailers will be most happy about has been the continuation to buy local, with domestic online sales making up 71% of all online shopping.
This is a trend that we expect to see in the months ahead, particularly as the rest of the world continues to deal with the pandemic.”
NZ Post is the largest delivery business for online shopping in New Zealand. “We’ve undertaken this research because NZ Post is committed to helping New Zealand businesses grow and strengthen their eCommerce presence,” says Wong.
To meet the continued growth in online shopping, and to help New Zealand businesses grow, NZ Post has recently announced a ten year $170 million investment programme on infrastructure. The programme has begun with construction of a new ‘super depot’ for parcels, in Grenada, Wellington, due to open in 2022. NZ Post plans to invest around $18 million in the latest global technology for the super depot, that will sort and scan parcels at a much faster rate.
Further insights from the Spotlight report show:
· Total online spend across the whole of Level 3 was 83% up on spend in same period in 2019.
· $107 average spend per transactions.
· In May there were nearly 1.5m Kiwis shopping online, that’s 28% more than in May 2019.
· During Level 3, average weekly online spend on Speciality Food, Groceries & Liquor increased by more than 105% over a year ago, Homeware, Appliances & Electronics increased 135% and Clothing & Footwear increased by 62%.
*Compared to the same period in 2019.
Source : https://www.nzpost.co.nz/about-us/media-centre/media-release
3. PostNL: We scaled up capacity by 40%, proving the flexibility of our network
August 4, 2020
PostNL has posted its second quarter of 2020 results, revealing a strong performance boosted by volume growth of parcels.
Highlights Q2 2020 and outlook FY 2020
· Realisation of anticipated benefits and synergies from combined mail network ahead of plan
· Additional mail volume decline due to Covid-19
· Strong growth in free cash flow thanks to working capital management and phasing over quarters
· FY 2020 normalised EBIT expected to be strongly above previous guidance of €110 million – €130 million
HernaVerhagen, CEO of PostNL, said: “During the Covid-19 crisis, we’ve been able to play a key role in society by continuing to provide our services despite the challenges of the pandemic. At the same time, we’ve taken a set of comprehensive measures to ensure a safe and healthy work environment for our people, partners and customers. We are applying the social distancing guidelines and health regulations and have implemented additional measures in our operations and facilities. I’m proud of our people. Together we demonstrated the strength of our business model under challenging circumstances.
“Covid-19 has changed consumer behaviour, leading to an acceleration of online shopping. To accommodate the strong volume growth at Parcels, we scaled up capacity by 40%, proving the flexibility of our network and the skills of our logistics experts. Our capacity will be scaled up further to accommodate higher volumes towards the second half of the year. Scheduled investments of around €150 million for expansion of capacity are on track. In 2021, we expect to start operating our innovative sorting centre for small parcels as well as two new depots, one in Belgium and one in the Netherlands. At the same time, the combined mail network is keeping mail delivery accessible, reliable and affordable in an increasingly digital environment.
“Over the second quarter of 2020, we report strong business and financial performance. Building on our HY performance, we expect normalised EBIT for FY 2020 to come in strongly above the initially guided range of between €110 million and €130 million and a strong improvement in free cash flow. Although the uncertainties around the global impact of Covid-19 seem to increase, we have confidence in our ability to deliver a very solid full year performance.”
Source : https://postandparcel.info/124813/news/post
4. Eesti(Estonian) Post updates postal code system of Tallinn and Pärnu
August 03, 2020
To improve the postal service, Eesti Post is changing some postal codes in Tallinn and Pärnu cities from 1 October. In Tallinn, certain postal codes in the City Centre, Northern Tallinn, Kristiine, Haabersti, Mustamäe, Lasnamäe, Pirita and Nõmme districts will change. In Pärnu, the postal codes of some addresses located on Kodara, Savi, Supeluse and Villa streets will change. The change concerns both those living in these areas as well as those sending letters and parcels to these areas.
When changing and updating some of the postal codes, Eesti Post adheres to the modern city plan and post office locations. At the moment, the problem is that since shipments are distributed between post offices based on postal codes, letters and parcels end up at inconveniently distant post offices. The change enforced in October will ensure that the postal codes match the post office locations and in the future, clients can use the post office closest to them for all post-related operations.
You can view the specific addresses
whose postal codes will change on the Omniva homepage.
We will notify people ahead to make sure that everyone has enough time in
August and September to inform all the institutions and people who send
shipments to their addresses of the new postal code.
The correct postal code on letters and parcels ensures that the shipment will reach the addressee on time. If a letter sent after 1 October has the old postal code, unfortunately, it cannot be ensured that it will reach the addressee’s post box in time.
If a parcel sent after 1 October has the old postal code, then it will be issued from the former post office of place of residence, which may not be the closest.
The currently valid postal codes can be viewed by address from the postal code search on the Omniva homepage.
Source :https://www.omniva.ee/
5. UNI Apro East Asia Postal Unions build virtual solidarity during pandemic
August 03, 2020
On 29 July 2020, the UNI Apro East Asia Postal Unions met virtually in place of the traditional annual forum it convenes annually since the COVID-19 pandemic broke out. The annual forum is expected to be convened physically next year.
UNI Apro Regional Secretary, Rajendra Acharya, in his opening remarks expressed appreciation for the unions’ hard work during the pandemic as essential workers for the community as well as protecting members. Outlining the overall situation in various countries in Asia and Pacific, he pointed out that the Asia Pacific reality is not very encouraging. Companies and employers are not forthcoming to discuss with trade unions and that even the role of governments in the region is found lacking as facilitator. “That’s why we have a huge role as global union representing the sectors that are either in the front line of this pandemic or essential services.”
The Presidents of CPWU Taiwan, KPWU Korea and JPGU Japan shared updates on how their respective unions worked hard to protect members during the crisis.
Taiwan’s outstanding track record for containing the spread of virus was achieved only with the massive cooperation and solidarity of its people. President Wu was very proud that the competent and dedicated postal workers of Chunghwa Post Workers Union played a key role from outbreak prevention and control to economic revitalization, and accomplishing many important tasks requested by the Government.
President Lee of Korea Postal Workers Union (KPWU) updated that since his recent election and concurrent appointment as General Secretary of Federation of Korean Trade Unions (FKTU), he has been actively involved in negotiating in the tripartite meetings to raise the minimum wage for 2021. He was pleased to announce that they managed to secure a very satisfactory increase even during the midst of the pandemic.
The positive role of the union is acknowledged when it achieved a historic high of 99% of all its delegates in attendance at its annual congress held online earlier in May.
While in Japan, President Masuda of Japan Postal Group Union (JPGU) reported that the Japanese Government expressed its appreciation for the dedication of JPGU’s members in accomplishing the gargantuan mission of distributing masks to 70 million households nationwide.
Cornelia Berger, Head of UNI Post & Logistics congratulated the unions for their contributions to the pandemic efforts. She shared about the initiative between UNI and Universal Postal Union (UPU) to protect better workers’ safety during the health crisis and also plans for future virtual discussions to move the sector forward.
Yoko Ogawa, Director of UNI Apro Post & Logistics informed about the development of the draft handout on best Occupational, Safety and Health (OSH) practices for the postal sector which will be especially relevant for all postal affiliates during this historic health crisis.
The affiliates will meet virtually again on September 2 when the UNI Apro Post & Logistics Committee is convened.
Source :https://www.uniglobalunion.org/news
POSTAL NEWS
No 65-2020
Formulated by UNI AproPost and Logistics Sector
|
1. Posti planning to combine morning delivery of mail and newspapers in four municipalities.August 13, 2020.
2. SingPost revenue up 12% in April-June as e-commerce deliveries climb.August 12, 2020.3. Covid-19 driving demand for delivery sector workers.August 11, 2020.4. Solidarity with the TForce Logistics Canada Ottawa Negotiations. August 07, 2020.
5. Austrian Post h1 2020 - Stable revenue, earnings affected by covid-19. August 07, 2020.
|
1. Posti planning to combine morning delivery of mail and newspapers in four municipalities
August 13, 2020
Finland’s Posti is planning to combine the delivery of letters, magazines and advertisements with the early-morning delivery of newspapers in four municipalities in Pirkanmaa and Satakunta.
After the change, the recipients will receive their mail in the morning instead of the afternoon.
In a statement posted on its website today (13 August), Posti said: “The delivery of letters, magazines and advertisements in the morning together with the early-morning delivery of newspapers has become necessary as the mail volume to be delivered has decreased significantly. There is simply not enough mail for two separate delivery networks.”
Yrjö Eskola, Senior Vice President, Postal Services at Posti, commented: “In the 2000s, the number of letters has reduced by over 60% because of digital communications, and the coronavirus crisis is accelerating the decline of printed mail even further. The volume of letter mail delivered by Posti decreased a record-breaking 24% in April-June from the corresponding period in 2019.”
According to Eskola, a regional delivery solution where letters, magazines and advertisements are delivered in connection with the early-morning delivery of newspapers may improve the cost-efficiency of delivery operations. Posti believes that maintaining two separate delivery networks will become unprofitable in upcoming years as the delivery volumes will decrease significantly.
Eskola explained: “This plan is about moving the letters and magazine delivered in the daytime to be delivered in the early-morning delivery together with newspapers. By combining the deliveries, we will ensure that our deliverers have enough mail to carry despite the drastically declined volumes of printed mail. This will keep the delivery cost of individual items at an affordable level. This is essential for both media corporations and magazine and newspaper subscribers.”
The change is being planned for four municipalities in the Pirkanmaa and Satakunta area. The affected municipalities and their postal codes are Virrat (34800), Urjala (31700, 31720, 31760 and 31830), Merikarvia (29900) and Mänttä-Vilppula (35700, 35820 and 35990).
No decisions have been made to carry out similar changes in other Posti early-morning delivery areas. The majority of Finland does not have an early-morning delivery network for newspapers so mail is delivered only with the daytime delivery.
Early-morning deliverers in Pirkanmaa and Satakunta have delivered letters and other items in early-morning delivery previously, when they were deliverers of the Alma Media subsidiary Alma Manu Oy. At the start of this year, Posti assumed responsibility for newspaper delivery in the area following an acquisition. In Finland, there are more than a dozen delivery companies that deliver letter mail in the morning together with the newspapers.
Posti believes that the move will have public support, as according to its research: “In all, 66% of citizens support the simultaneous delivery of newspapers and day mail in the morning.”
Eskola argued that the simultaneous delivery of mail and newspapers will also help to meet emissions reduction targets.
“Posti’s goal is to become emission-free by 2030,” said Eskola. “Due to the drastic decline in delivery volumes, it is not sensible for a deliverer to come by a mail recipient’s door twice a day. Delivering newspapers and day mail together would significantly decrease driven kilometers and emissions.”
The proposed changes would not apply to parcel delivery as parcels would still be delivered to pick-up points or Home Parcels directly to the recipient’s home as separate deliveries.
Source : https://postandparcel.info/125323/news
2. SingPost revenue up 12% in April-June as e-commerce deliveries climb
August 12, 2020
SINGAPORE Post's (SingPost) group revenue increased 12 per cent to S$360 million for its first fiscal quarter ended June 30, 2020, from S$321 million in the corresponding period last year.
This was driven by the continued growth in cross-border e-commerce delivery volumes in the international post and parcel business, as well as at the CouriersPlease and Quantium Solutions subsidiaries, the postal service and courier company said in a business update on Tuesday evening.
However, the higher revenue also brought about a corresponding increase in costs as a result of supply chain disruptions. Group expenses grew 22 per cent to S$341 million for the April-June period.
SingPost thus saw its group profit on operating activities nearly halve to S$22 million for the quarter, from S$42 million a year ago, dragged by the higher expenses.
Its financial performance was also dragged by the "adverse impact" the novel coronavirus pandemic had on the group's customers, and doubtful debt provisions could increase over time, SingPost said.
E-commerce volumes rose across the board in Singapore, Australia and internationally for the quarter. SingPost delivered 8.7 million items under the domestic post and parcel e-commerce business, up 52 per cent from the 5.7 million a year ago. "Initiatives such as the new tracked letterbox product facilitated contactless deliveries at a cost-effective price point and saw significant traction among customers," the company said.
As for the international and post and parcel business, cross-border e-commerce volumes grew 30 per cent to 7.2 million kilogrammes in the quarter.
However, volumes of letters and printed papers in Singapore continued to shrink, falling by a third to 100 million items delivered compared with 149 million in the year-ago period.
This downtrend was "expected due to electronic substitution", and was exacerbated by reduced business mailing during the city-state's "circuit breaker" for most of the quarter, SingPost said.
Costs also increased as a result of health and safety arrangements during the Covid-19 situation, including temporary housing for Malaysian employees in Singapore.
In addition, the pandemic caused a "massive disruption" to international air freight out of Changi Airport, which led to delays and increased conveyance costs.
Separately, the group is implementing its Future of Post initiative to re-engineer the postal business to capture opportunities in smart urban logistics. A key component of this ecosystem will be what SingPost calls the world's first "smart letterbox", which will commence public trials in the next few months.
Shares of the mainboard-listed counter fell S$0.01 or 1.4 per cent to finish Tuesday at S$0.70, before the business update was released.
Source : https://www.businesstimes.com.sg/companies-markets
3. Covid-19 driving demand for delivery sector workers
August 11, 2020
Covid-19 has generated a surge in demand for workers in the transportation and delivery sector, according to Australia-based courier Aramex. This requirement for delivery workers comes in light of the highest unemployment rates in decades in the country.
The courier firm reported a 48% increase in deliveries in comparison to this time last year, and has continued to remain operational during border closures while innovating and taking advantage of the gig economy to meet the growing demand.
“With more than 800 Courier Franchisees delivering across 28 regional franchise networks, we are proud to be delivering for Australian businesses and customers at this critical time,” said Aramex Australia CEO Peter Lipinski.
“In recent years, e-commerce has been booming in Australia. Covid-19 has accelerated this growth. Integral to our success in meeting this growing demand has been our Blu Couriers innovation.
“Our Blu Couriers platform enables our franchisees to scale up in busy periods through tapping into the gig economy. We have seen double the sign-ups to Blu Couriers in comparison to this time last year, with our Blu Courier drivers helping our network meet the avalanche of deliveries and returns.”
Aramex recently launched Courier Lite, which supports its Courier Franchisees in managing the growth in delivery without compromising customer service or delivery times. The Courier Lite Franchisee is said to have a focus on high demand areas and only collects parcels from the home depot once per day. Courier Lite drivers will share the same uniform and vans as traditional Courier Franchisees, with low startup costs, creating an attractive entry-level opportunity into the wider Aramex Australia network. It is intended to be a first step before becoming a fully fledged franchisee.
Source : https://www.parcelandpostaltechnologyinternational.com/news/delivery
4. Solidarity with the TForce Logistics Canada Ottawa Negotiations
August 07, 2020
On Monday, August 10, the members of the Ottawa bargaining unit of TForce Logistics Canada Inc. will vote on the employer’s final offer. A strike vote will also be held.
Negotiations with TForce have been contentious from the very beginning, and while we were able to secure new collective agreements for the other TForce bargaining units across the country, the employer has refused to engage in any meaningful negotiations with the Ottawa workers and CUPW.
Our demands are fair and reasonable. Drivers who have helped TForce and its Parent company amass $864 million in profit before taxes last year want their first pay increase in seven years. They want their employer to recognize their employee status so they can receive employment insurance and paid sick leave. They also want their WSIB grievance to be heard in arbitration. Drivers, who have delivered through the COVID-19 pandemic, helping to flatten the curve, have no safety net if they fall sick. That is unacceptable.
The Ottawa TForce negotiations was in conciliation when the employer decided to table a final offer to take to the membership for a vote. This offer is unfair to the workers and will not provide them with the same rights and compensation as the other TForce workers across the county.
This has been a long and grueling negotiation process, and more than ever, we need to remind TForce that all 57,000 CUPW members stand with the Ottawa bargaining unit and believe their demands.
Source: https://www.cupw.ca/en
5. Austrian Post h1 2020 - Stable revenue, earnings affected by covid-19
August 07, 2020
Business development impacted by COVID-19 in the first half of 2020
· Revenue decline in the mail business affects earnings:Reduction in Letter Mail revenue (-6.7 % or EUR 27.5m) and absence of Direct Mail (-18.0 % or EUR 33.5m)
· Negative COVID-19 effect in the EBIT in H1 of about EUR 45m due to extraordinary health measures, higher logistics costs and revenue loss
Revenue remains stable despite COVID-19
· Revenue H1 up by 0.1 % to EUR 981.9m (-2.0 % in Q2 to EUR 479.1m)
· Good Parcel growth (+30.0 %) offsets Letter and Direct Mail decline (-10.5 %)
Earnings with COVID-19 effect and bank99 start-up costs
· EBIT of the logistics business (excl. Retail & Bank Division) of EUR 76.9m in H1 (-27.4 %)
o Mail with earnings decline by EUR 30.3m (-29.3 %)
o Parcel & Logistics with earnings growth of EUR 3.3m (+22.1 %)
· Group EBIT of EUR 48.2m (-55.2 %)
o Retail & Bank with earnings of EUR -28.7m due to bank99 start-up costs
Cash flow and balance sheet
· Operating free cash flow of EUR 45.3m below prior-year level
· Higher balance sheet total of EUR 2,157.2m (+5.6 %) as result of the start-up of bank99
Outlook 2020 with initial cautious forecast
· Largely stable revenue in 2020; Revenue increase expected after the full consolidation of the Turkish company Aras Kargo
· EBIT of the logistics business (excl. Retail & Bank Division) forecast of at least EUR 160m
· Group EBIT in 2020 with positive effect from full consolidation of Aras Kargo and negative impact from start-up of bank99
· Earnings improvement targeted in all divisions in 2021
The first half of 2020 presented major challenges for many companies across the globe, including Austrian Post. The company's priorities were determined, on the one hand, by the COVID-19 pandemic and related safety and health protection measures, and on the other hand, by the negative economic impacts. In particular, the second quarter of 2020 brought about the most significant disruption of the last ten years due to lockdown and economic standstill in some industries.
In spite of the considerably more difficult conditions, Austrian Post succeeded in maintaining the nationwide supply of mail, parcel and branch network services thanks to the tireless commitment of all employees, although the fulfilment of delivery obligations wasn't necessarily profitable and government regulations and crisis measures produced extra costs. “Upon initial review, our conclusion is that we managed to preserve the safety and health of employees and safeguard the performance capabilities of the company. This entailed considerable costs to ensure staff safety and resulted in extremely high capacity utilisation of the logistics infrastructure to handle the additional parcel volumes of up to 50 % per week”, says CEO Georg Pölzl.
“Against this backdrop, first half-year 2020 revenue exceeded our expectations and earnings were in line with current expectations”, CEO Georg Pölzl adds. Austrian Post’s Group revenue amounted to EUR 981.9m, slightly higher than the prior-year level (+0.1 %).
The dynamically growing parcel business showed a significant increase of 30.0 %, compensating for the decline in the Mail and Retail & Bank divisions.
The Mail Division accounted for 59.8 % of the Group revenue. In the Mail Division, the expected shortfalls resulted in a revenue decrease of 10.5 %. This is, on the one hand, due to a significant decline in conventional Letter Mail volumes triggered by the closure of many governmental offices and businesses. On the other hand, Direct Mail revenue was also significantly impaired by the government-imposed store closings in response to COVID-19.
The revenue of the Parcel & Logistics Division was driven by organic growth from online orders as well as additional parcel volumes generated through the cooperation with Deutsche Post DHL Group since August 2019. The 34.6 % revenue decrease in the newly created Retail & Bank Division in the first half of 2020 is due to the inaugural launch of bank99 on 1 April 2020, whereas the first half of the previous year still included service fees from the previous banking partner of EUR 18.8m.
The earnings development of the first half-year reflects the dynamics of the different business areas and the impacts of COVID-19. On balance, the negative COVID-19 effects amounted to about EUR 45m in total as a result of extraordinary health measures and logistics costs (about EUR 20m) as well as the impact on earnings related to the revenue loss (about EUR 25m). The revenue decrease in the Letter Mail and Direct Mail business areas have a strong impact on earnings due to the high level of fixed costs. In contrast, the Parcel business benefited from the massive impetus ine-commerce but is generally subject to higher variable costs.
Furthermore, additional expenses arose over the past months to ensure Austrian Post’s ability to handle the unexpected rise in parcel volumes of up to 50 % during some weeks.
EBIT of the logistics business (excl. Retail & Bank Division) was down by 27.4 % in the first half-year to EUR 76.9m.
The start-up of bank99 presents a significant special effect in 2020. bank99 has been operating on the market since the beginning of April and will feature a focused offering of financial services. The bank has already succeeded in attracting more than 42,000 customers in the first four months and recorded initial financial services revenue. The objective is to add new products to the financial services offering in the upcoming quarterly periods and generate positive earnings contributions by 2023.
Accordingly, the Retail & Bank Division produced a negative earnings contribution of EUR 28.7m due to the start-up costs for bank99 and the impact related to COVID-19. Group EBIT in the first half of 2020 totalled EUR 48.2m, down from EUR 107.7m in the first half of 2019. Earnings per share equalled EUR 0.66, compared to EUR 1.17 in the previous year.
A forecast for revenue and earnings in the 2020 financial year is not possible at present due to the currently hard-to-assess economic situation in many customer segments facing uncertainty. The further development of the COVID-19 pandemic, the resulting government measures as well as the manner and extent to which the economy rebounds will all have a direct impact on the company’s further business development in 2020. Against the backdrop of current trends, and assuming an ongoing recovery of the economic situation, it is expected that revenue will remain largely stable in 2020. The full consolidation of the Turkish company Aras Kargo will contribute to revenue growth over the year 2020.
In terms of earnings, the forecast for 2020 assumes that the EBIT of the logistics business (excl. Retail & Bank Division) will equal to at least EUR 160m for the full year 2020. Group EBIT (basis EBIT 2019: EUR 201m) will be impacted by two additional effects, on the one side the positive effect from the full consolidation of the Turkish company Aras Kargo and, on the other side, the negative effect related to the start-up costs of bank99. The necessary long-term investments and start-up costs should steadily decline in the coming quarterly periods.
Austrian Post will continue to pursue investments and measurements that lead to an extension of capacities and to sustainable efficiency enhancement. Targeted investments and measures should contribute to an earnings improvement in all divisions and will therefore increase the Group earnings in 2021.
Source : https://news.post.at/presse/en/post
POSTAL NEWS
No 66-2020
Formulated by UNI AproPost and Logistics Sector
1. Poste's digital education guides citizens between technology and innovation.August 13, 2020.2. NZ Post continuing to provide delivery services in Auckland.August 12, 2020.
3. Online shopping spend increases as lockdown eases. August 12, 2020.
4. La Poste accounts: the public postal service deserves better!August 12, 2020. |
1. Poste's digital education guides citizens between technology and innovation
August 13, 2020
The company has always focused on digital customer education, first with meetings in Post Offices and now with a series of video learning pills
The need to extricate oneself from the virtual world exploded clearly during the lockdown, between online purchases, smart working, meetings and video chats. Poste Italiane has always insisted on the need for a good digital education and, as always, had already thought about the country by promoting a series of meetings to increase citizens' digital culture. Meetings that in the months preceding the lockdown involved many of the Company's offices with digital and financial education events and which now, we recall, continue with the video pills at the link https://www.posteitaliane.it/it/edificazione-digitale.html #/video on the Poste Italiane website, with insights such as: The opportunities of digital, The many dimensions of digital, Safe online shopping, Digital identity, Cryptography, Smishing, Navigate safely and many others.
Success "in presence"
The events in the presence, on the other hand, had met with great success among users, also testified by the words of the post office managers who had had the opportunity to organize them. This is the case of Franco Macario, DUP of Cuneo Centro, who speaks in a truly enthusiastic way about the digital education meeting that was held in his Post Office: "The customers were very satisfied, they asked us to repeat the event with other issues. It was also interesting for ourselves and for our colleagues: the customer contact phase involved the entire branch and we hope to be able to do it again in the future because customers have insisted on this ". The customers seemed very attentive: “Yes, there has been a lot of interest in IT details, and also on online scams and digital defense mechanisms.
Source :https://www.postenews.it/2020/08/13
2. NZ Post continuing to provide delivery services in Auckland
August 12, 2020
As New Zealand’s largest city is put back on lockdown after recording four new COVID-19 cases, NZ Post has announced that it will again “step into the role of essential service provider for Aucklanders and businesses selling their items online”.
In a statement issued today (12 August), NZ Post said it is “continuing to provide delivery services in Alert Level 3 in Auckland and Alert Level 2 nationwide”.
NZ Post Chief Customer Officer Bryan Dobson commented: “We are committed to keeping our people, and New Zealanders, safe. From today, our delivery people will be reintroducing ‘contactless’ delivery and keeping a two metre distance from all members of the public. This applies to all of New Zealand.
“While you may be excited to receive your item from us, we ask everyone to please strictly respect the two metre rule for our people, and to not approach Couriers and Posties as they deliver your items.
“In Auckland, our teams will be wearing masks when in public places, in keeping with Government guidelines. Note that our people are not required by the Government to wear a mask when alone in their vehicles. Across the country, we are ramping up hygiene practices, including washing of hands, physical distancing in our processing sites, and other safety measures.
“If you need to visit your local PostShop, it is best to check our store locator for the most up to date information on whether your local PostShop is open, as this will vary within Auckland.
“Outside of Auckland, PostShops will remain open, but are following safety guidelines including high hygiene standards and physical distancing of two metres. If customers have an item they wish to send they can also do so by booking a contactless pick-up using Print Postage Online.”
Dobson continued: “Our call centre is in the process of setting up Alert Level 3 arrangements – with some of our customer care teams working from home and some working in a physically distanced way in one of our sites. We expect there may be some disruption today as they make this change, so please check the website in the first instance for information on your query.
“At this stage it is too early to tell what the impact of these Alert Levels might be on the quantity of online shopping we receive to deliver, but we are currently working with businesses who send large volumes of items to forecast what we might see in the coming days and weeks.
“It is possible that a sustained increase in the number of parcels coming in over a short period may lead to some delays, however we promise customers we will provide regular updates if this is the case.
“We want to reassure customers that we are applying what we learnt last time to help keep deliveries flowing smoothly, while prioritising the safety of our people and all New Zealanders.”
Source : https://postandparcel.info/125247/news
3. Online shopping spend increases as lockdown eases
August 12, 2020
A study released today by Royal Mail shows that consumers shopped more frequently in June 2020 and spending increased, compared to the previous month. Royal Mail’s Delivery Matters COVID-19 survey reported that on average, online shoppers spent £226 on purchasing goods in June 2020, compared to £213 in May. This compares to an average of £226 spent over a three-month period in 2019*.
Women were more likely to have shopped online more frequently than men. Those aged over 35 years old had a significantly higher monthly spend in June than those aged 18-34 years old - £247 vs. £163.
Priorities have shifted as lockdown measures ease. Shoppers are still purchasing DIY equipment and gardening products but demand here is starting to return to normal levels, whilst spend on clothing and footwear, makeup and food and drink continues to grow. For food and drink, 44 per cent bought online in June 2020 compared to 28 per cent over a three-month period in 2019*.
With 33 per cent of those surveyed seeing a decrease in their income, free delivery is seen as a top priority. Being kept informed on delivery progress is also important.
Royal Mail continues to lead the market in terms of awareness and preference. Postmen and postwomen are considered the most trustworthy delivery carriers. 76 per cent of online shoppers trust Royal Mail to deliver more than anyone else. In uncertain times a familiar, reliable service matters.
To help cope with the significant increase in demand, Royal Mail has recently signed a deal with Beumer Group, a leading global supplier of automated parcel and post distribution systems, to design and build the automated parcel sorting system for its new fully automated North West parcel hub in Warrington. Analysts predict that even as lockdown lifts online sales will continue to account for a significant proportion of sales. The Warrington parcel hub is ideally-situated for the warehousing and fulfilment centres of major online retailers to support the growing demand for next day delivery and the delivery of larger items.
Nick Landon, Chief Commercial Officer at Royal Mail, said “COVID-19 and lockdown have driven major changes in consumer habits, including the way we shop. As lockdown begins to ease our research shows that online spend is still increasing but the mix of items bought continues to change as we all adjust to the new normal. Online ordering and home delivery of clothing, makeup, food and drink look set to stay as the one off or more occasional DIY and gardening purchases move back towards normal levels. As people continue to shop more online, at Royal Mail we continue to deliver the trusted and quality service they expect. Royal Mail has played a key role in keeping the UK economy going during the COVID-19 crisis. The research highlights that our postmen and postwomen are trusted to deliver more than anyone else, especially in these challenging times.”
Source : https://www.royalmailgroup.com/en/press-centre/press-releases
4. La Poste accounts: the public postal service deserves better!
August 12, 2020
While the health crisis does not spare the accounts of La Poste, the integration of the NOC in the group (operation "Mandarin"), however, displays a positive result at 1 st half of 2020, net profit of 2.315 Billions of Euro's. Without this transaction, the Group would post net income of -1.225 billion, or operating income of -241 million. In addition, Banque Postale's NBI is stable with a positive trend towards companies and territories, on BPE (European Private Bank) and Ma French Bank.
But for La Poste, this accounting display does not reflect the economic reality of the company or its difficulties, in this case within the Mail branch, whose volumes have fallen by 26% over 1 year, i.e. a drop in turnover. case of more than a billion. The weeks of health crisis therefore saw an acceleration of this structural decline, reaching the target set for…. 2024. And unfortunately, the explosion in parcel volumes, + 20% growth on GeoPost and Colissimo, only partially compensates for this drop.
The leaders were very clear: La Poste will no longer be able to provide the universal service on its own (mail delivery). Thus, a reflection on the question has just started through the public service committee of the Board of Directors which will then forward its file, among others, to the State and the ARCEP (Regulatory Authority for Electronic Communications and Posts ).
For FO Com, it should above all be remembered that if the Courier business is in such a situation, the health crisis is not solely responsible; the fall in activity is combined with a chronic disengagement of the State for years, in particular as regards the financing of public service missions in general and mail specifically.
There is no need for a public committee when the State takes its responsibilities by financing and supporting what we consider to be an essential service to the Nation! The crisis has shown us that.
For
years, postal workers have borne the brunt of this policy through incessant
reorganizations degrading their working conditions and weakening their
jobs. In addition, it should not be them who, once again, foot the
bill ! In parallel with the debate on the future of the
public service, its financing and its jobs, the question of the remuneration of
postal workers must be raised. Indeed, the announcement by the President
of an economy plan (without revealing its content) to compensate for the billion
lost, is already accompanied by a first knife stroke in their purchasing power.
with a possible zero incentive for 2021.
This is why FO Com calls on all postal workers to make their voices heard by demanding recognition of their commitments. The crisis should not be paid for by drawing from their pockets! The urgency is to fight for the maintenance of jobs, the increase of wages and for the guarantee of decent working conditions.
Source :http://www.focom-laposte.fr/