Distribution Directions Vol 9 No 7 Trucking Costs, Discover Cards Advertisement, Post Office Closures, Do Not Deliver Requests

The cost of U.S. traffic congestion has jumped to $115 billion in 2009 from $24 billion in 1982, and trucks are shouldering a disproportionate share of the cost. Congestion in the nation’s largest urban areas cost the trucking industry $33 billion in delay time and wasted fuel last year, said the annual Urban Mobility Report by the Texas Transportation Institute of Texas A&M University. While trucks account for just 7% of the total vehicle miles traveled, the $33 billion represents 29% of the total congestion costs. Unlike the cost of congestion for cars, the cost of truck congestion “was passed on to consumers in the form of higher prices” and the fallout from the congestion extends “far beyond the region where the congestion occurs,” the report said.

Source: Transport Topics

Let’s Make a Deal

Don’t be surprised if you start seeing more solicitations for Discover cards showing up in your mailbox. The U.S. Postal Service and Discover Financial Services (DFS) have reached a deal giving Discover incentives to increase its mail volume during the next three years. The arrangement could set a pattern for deals with other large mailers that, like Discover, are mailing fewer customer statements these days because of online billing. The Negotiated Service Agreement “is intended to promote new growth in Standard Mail that will help offset the expected decline in DFS’ First-Class Mail volume,” says USPS’ recent filing with the Postal Regulatory Commission. The agreement needs the PRC’s blessing to be implemented. To qualify for rebates and avoid a penalty, Discover’s mail volume in the first year must be 10% higher than in the February 2010-January 2011, then 15% the second year and 20% the third year. But there’s a kicker: “To qualify for rebates DFS must send an extra $1.65 worth of Standard Mail to offset each dollar decline in postage from First-Class Mail. This mechanism is intended to control the difference in contribution margin between First-Class Mail and Standard Mail, and to maintain or increase overall contribution from DFS mail.”

Source: Dead Tree Edition

USPS to Close Thousands of PO’s

Beginning in March, the agency will start the process of closing as many as 2,000 post offices, on top of the 491 it said it would close starting at the end of last year. In addition, it is reviewing another 16,000—half of the nation's existing post offices—that are operating at a deficit, and lobbying Congress to allow it to change the law so it can close the most unprofitable among them. The law currently allows the postal service to close post offices only for maintenance problems, lease expirations or other reasons that don't include profitability. A disproportionate number of the thousands of post offices under review are in rural or smaller suburban areas, though the postal service declined to provide any estimate on how many beyond those slated to begin closure in March might ultimately close or which ones are being targeted.

Source: Wall Street Journal

USPS Clarifies Do Not Deliver Requests

"The Postal Service wishes to clarify erroneous information in at least two recent news articles regarding requests for non delivery of mail with simplified addressing. Consumers who do not wish to receive mail with a simplified address must make the request through the mailer, not their carrier. The mailer will then notify the local delivery unit through the same processes currently established for rural routes. Simplified Addressing enables a mailer to use mail delivery route information to reach target customer groups in specific areas without applying names or exact addresses." Rural carriers use Form 1564-B to record customers’ special requests for handling their mail. Since this is not a requirement there is no specific reference to it in the DMM. The USPS will issue further information in the coming month.

Source: USPS Press Release

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