Distribution Directions Vol 9 No 10 5-Day Delivery Update, 1st Quarter Loss, Diesel Cost, Digital Postal, ZIP-Code Info

Wondering what happened to the idea of five-day mail delivery? You're not alone. The Association for Postal Commerce, commonly called Postcom, posted this little item on its Web site this week - Key sectors on Capitol Hill are very unhappy with the fact the Commission's long-awaited report on 5-Day Delivery has yet to be delivered. The PRC originally indicated it wanted to issue an opinion by the end of November, but it got swamped by other issues, including the USPS appeal of the PRC's rejection of exigent rate increases and a need to interpret how to calculate the price cap for most postage rates in light of deflation. There's also a question of relevance, given PRC Chairman Goldway's recent comment that the budget proposal President Obama will unveil next week addresses "major financial concerns in the Postal Service." The USPS would not need to end Saturday delivery if the budget lifts the two anchors weighing down their finances -- what are euphemistically referred to as prepaid retiree benefits and overpayments for pensions. If those two Postal Service subsidies of the federal government were corrected, the Postal Service would be profitable.

Source: Dead Tree Edition

USPS Begins 2011 with Loss in 1st Quarter

The U.S. Postal Service (USPS) ended the first quarter of this fiscal year (Oct. 1 - Dec. 31, 2010) with a net loss of $329 million, compared to a net loss of $297 million for the same period in fiscal year 2010. Excluding the cost of prefunding future retiree healthcare benefits and noncash adjustments to the workers’ compensation liability, the Postal Service would have had a net income of $226 million for the first quarter. Mailing Services revenue of $15.3 billion decreased $520 million, or 3.3 percent, in the first quarter of 2011, compared to the same period a year ago. Mailing Services volume of 45.9 billion represents a 1.5 percent increase from the same period a year earlier. Revenues from Mailing Services declined despite an increase in overall volume. The increase in revenue from Standard Mail was not sufficient to offset the loss of revenue from the reduced volume of First Class Mail.

Source: USPS Press Release

Diesel to Average $3.43 This Year

The Department of Energy continued to boost its projected price of diesel fuel, saying it will average $3.43 this year, up 3 cents from its forecast last month. Trucking’s main fuel averaged $2.99 last year, DOE said in its monthly short-term energy outlook, adding that the price will climb to an average $3.51 in 2012. Gas averaged $2.78 average last year, and DOE projected the motor fuel will rise average $3.30 in 2012.

Source: Transport Topics

Digital Postal Mail Market Heating Up

The development of a paperless postal system in the United States has taken a step forward with technology developer Zumbox signing up a major mailing partner. KUBRA operates electronic billing systems for major telecommunications, utility, healthcare and finance companies, bringing 400 mailers to the Zumbox system. Collectively, KUBRA’s customers send out around one billion pieces of transactional mail each year.

Source: Post & Parcel

ZIP-Code is Personally Identifiable Information

California's highest court ruled that a ZIP-Code constitutes "personal identification information,” reversing a lower court's decision in favor of Williams Sonoma. The Supreme Court of California ruled that state law (the California Credit Card Act) prohibits businesses from requesting and recording ZIP codes from consumers prior to credit card transactions, including requests for use in marketing.

Source: DMA

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