USPS Gains Share of U.S. Air Market

DMNews.com ^ | 5-15-2006 | Melissa Campanelli

[Colonel Kangaroo]

The U.S. Postal Service gained share of the U.S. domestic air cargo market in the first six months of 2005, a phenomenon that hasn't occurred for years, The Colography Group Inc. said in the midyear 2005 edition of its Domestic Air Cargo Trends report. The report, issued May 9, is one of a series of semiannual reports on the U.S. domestic air express and air cargo markets.

U.S. air shipment growth in Q2 2005 exceeded growth in the nation's gross domestic product, which the Atlanta company called encouraging for U.S. domestic air trade. This was the first quarter dating to 2001 that air shipment growth exceeded GDP growth.

But domestic air growth still lagged that of the major air-competitive surface modes, such as ground parcel and less than truckload, underscoring the ongoing migration of domestic traffic from air to lower-cost regional trucking options.

The postal service's share of domestic air shipments rose to 37.6 percent in the first half of 2005 from 36.7 percent in the year-earlier period, The Colography Group found. UPS fell to 21.1 percent from 21.6 percent, and DHL Express declined to 10.5 percent from 11.2 percent. The USPS remains the market leader, followed by FedEx Express with 30.1 percent.

"Though this is backward-looking data, it should be noted that long-term trends, once established, tend to remain in place for a while," said Ted Scherck, president of The Colography Group. "Improvement in air volumes over the past several years has been striking, and fast forwarding into 2006 we continue to see upbeat results for domestic air activity. As for the postal resurgence, only time will tell if the market share gains in 2005 are a lasting trend."

Other findings in the midyear 2005 report:

* 1.2 billion shipments moved in U.S. domestic air service, up 2.2 percent from the year-ago period. Revenue reached $16.2 billion, up 3.9 percent.

* Domestic letter/envelope volume was flat, package volumes rose 2.8 percent while airfreight shipments climbed 2.2 percent. Revenue increased year over year for all three categories.

* Revenues continued to rise because of higher fuel surcharges. The effect of fuel surcharges intensified after Hurricane Katrina and then in the upward spike in oil prices during spring 2006.

* Deferred, or non-overnight, air traffic grew 4.1 percent and revenue rose 4.7 percent. But overnight air traffic decreased 0.3 percent with revenue climbing 3.3 percent. Shippers found value in more economical services that did not guarantee an overnight delivery.

[Colonel Kangaroo]

Maybe the talk of a demise of the USPS in the near future are premature.

I give an attaboy for all our people here who are hard-working employees of the best postal service in the world.

[gcruse]

Socialized medicine bad, but socialized air cargo good?

[Colonel Kangaroo]

Postal service is provided for in the Constitution. All things being equal, I agree that free markets are desirable. But given that the Founding Fathers thought a universal post office was a desirable thing to have, I'm glad that the USPS is one of the best in the world.

[Blzbba]

"Socialized medicine bad, but socialized air cargo good?"


Yeah, really. UPS & FedEx should get the massive gov't subsidies the USPS does.

[CertainInalienableRights]

I prefer Federal Express for air shipments.

1) They're not unionized, unlike USPS and UPS

2) When I have to visit their facility, I am always greeted by a smiling, competent representative and am in and out of the office in under five minutes. If a line forms, extra representatives quickly appear to assist customers.

Typically, a USPS visit involves a line of 10-20 customers waiting for a single dour, overweight, unfriendly "representative" who moves at a snails pace.

Its strange, every USPS office has multiple stations at their counter, but never are more than one used simultaneously at any given time, except perhaps Christmas.

Going to the post office is nearly always a 30 minute ordeal.


If I wasn't forced to use USPS for mail by their monopoly, I'd never see the inside of a post office again.

[discostu]

I've never been in a Post Office that was had less than half the stations manned except when coming in right when they first open, and they're always friendly and helpful. And of course if you know what you're doing you can use the automatic postage printer and never deal with a person, in most POs the machine is in the PO-box section and accessible 24/7.

You're not forced to use USPS they don't have a monopoly, and so far all your complaints are wrong. Typical of the USPS basher, just making crap up.

[CertainInalienableRights]

I've never been in a Post Office that was had less than half the stations manned except when coming in right when they first open, and they're always friendly and helpful.

Monday of last week. 10:30am. West Park post office on Lorain in Cleveland. Steady stream of customers for the entire 1/2 hour I was there. Never less than 10 people queued in line. One person behind the three or four station counter. Several employees wandered in while I was waiting, and fiddled around with things at the other counters, but either they didn't notice the line, or didn't care to do anything about it because none would accept customers.

Normally, I would go to the Garfield Heights post office on Rockside, which is close to my office and is a new shiny facility. Only its even worse there, because I have to go during lunch, and even after 100 years, it doesn't seem to occur to the post office to increase their staff levels behind the counter at lunch time - there's always a single person behind the counter and 20 people in line hoping to get their mail off and still have time to grab something to eat. As it gets closer to 1:00, the people at the end of the line start dropping off and leaving, having wasted large parts of their limited lunch time standing in line.

I was at Fedex last Thursday to drop off a package (at 9:30 at night, because they're still open) for delivery early am (something the post office does not offer - package arrived in Knoxville TN at 9am). Two people manning the counter, both extremely friendly and efficient despite being 15 minutes before closing. Steady stream of customers despite pouring rain, yet no one had to wait more than a minute in line. Same story every time I visit a Fedex office.

And of course if you know what you're doing you can use the automatic postage printer and never deal with a person, in most POs the machine is in the PO-box section and accessible 24/7.

I needed to send three letters certified mail with a return receipt, and from the USPS website: "A validated receipt confirming payment of the service is not available unless mailed from a Post Office facility." I didn't see any postage meter at my PO, but then, I wasn't looking for one since I was already there.

You're not forced to use USPS they don't have a monopoly, and so far all your complaints are wrong.

Typical of the USPS basher, just making crap up

Repeated personal observations is not "just making crap up". If USPS isn't a monopoly, please direct me to their first class mail competitors.

[discostu]

Sorry I'm simply not buying it. I've been to a dozen different post offices in three different states and NEVER seen such a thing, early in the morning I might see just one clerk but there's never a crowd then. The primary source of wait times at the PO is customers who don't know what they're doing, improperly addressed packages, improperly packaged packages, inability to decide what method of sending to use. PO employees you see behind the counter but not working a counter station are probably doing other work involved in sending and delivering mail. Obviously you never worked retail or you'd know you can't just have random people jumping onto registers and handling money, there needs to be total accountability for cash drawers.

FedEx is nice, except last week they put a cardboard box in a puddle on my porch, litle puddle barely big enough for the box. First problem I've had with FedEx though so I'm not going to hold it against them, and much better than ID certified delivery by UPS who just suck if you can't be at home during normal work hours.

You artificiall limited the pool. First-class mail is a USPS thing. But you can send packages and letter through many other companies, all with their own terms and nomenclatures. USPS does not have a monopoly on delivering the mail.

[CertainInalienableRights]

USPS does not have a monopoly on delivering the mail

USPS has a monopoly on non-express delivery services.

Here's what wikipedia says:

The United States Congress originally passed the PES in 1792, under powers granted it in the United States Constitution to "establish Post Offices and Post Roads". The PES created a governmental monopoly on the carriage and delivery of letter mail, and ensured that this monopoly can be enforced. Today the USPS is empowered to suspend the PES, if it believes such a private postal service would be in the interests of the general public.

...(code citations)...

These forbid all carriage and delivery of mail by private organizations, except as described in the next section.

Exemptions:

- "Extremely Urgent" letters

- Lawful private carriage

It is possible to set up a private mail delivery service known as "lawful private carriage" if the USPS postage is paid in addition to any private postage fee that is collected

- Occasional private mail delivery

- Special messenger services

- Free delivery

- Cargo delivery

This describes the specifications: http://www.nalc.org/depart/cau/pdf/manuals/pub542.pdf

According to that USPS document, it is illegal to set up a private mail service (for letters) of any useful scale, unless you either

1) Charge at least $3 and deliver express (UPS/Fedex exemption)

2) Do it for free, or

3) Pay the USPS for what they would have charged
(effectively making any private venture financially impractical).

That may not legally make USPS a monopoly, but it sure does practically.

[FreedomPoster]

I live close to two Post Offices. The one that's closer is very much the model of CertainInalienableRights's experience. The one that's a little further is closer to yours, discostu.

USPS does have a monopoly on 1st Class mail. Go try to start up a delivery service to people's mail boxes.

[ASA Vet]

What subsidies would that be?

[CertainInalienableRights]

Go try to start up a delivery service to people's mail boxes.

What's interesting is that the Internet could also have a practical affect on physical mail if the PES statutes weren't standing in the way.

Most people have e-mail (but many don't), but it is still important for much correspondence to be received physically.

Imagine if a delivery service was set up that allowed you to type in an e-mail or submit a Word document or PDF. The service would electronically transmit that information to a facility close to the recipient, where it could be validated against the senders intent ( a simple process technologically ), printed out, and delivered to the recipient.

You would have all the benefits of physical mail, but without having to cart pieces of paper cross-country. It would be easy enough to take printed originals, scan them, and transmit them as well.

However, a private company can't take that printout and deliver it to the recipient unless it charges $3 or pays the USPS its tribute.

[CertainInalienableRights]

What subsidies would that be?

"The USPS claims to have operated "in a businesslike manner without taxpayer support" since its spinoff from the cabinet on July 1, 1971 following the passage of the Postal Reorganization Act of 1970. It does, however, receive compensation from taxpayer funds for certain services that it is mandated to provide for free or at a discount, including free mail for the blind, military mail, nonprofit mail and overseas ballots. $36 million in such compensation was paid for fiscal 2004. In addition, Congress appropriated the USPS a total of $762 million for biohazard decontamination and detection equipment in response to the 2001 anthrax attacks."

[discostu]

You can send via UPS and FedEx and DHL and a few other small timeers therefore it is NOT a monopoly, not legally and not practically.

[discostu]

Mailboxes are functionally mostly the property of the USPS (within certain restrictions, you can buy your own box but it has to meet certain USPS guidelines or they won't deliver to it) but you can setup a delivery service that delivers to people's doors, or to boxes you provide them.

[discostu]

There already is such a service, actually there have been a few versions of such a service. The first form was a telegraph, which except for the Word and PDF thing did exactly what you describe. More recently we have faxing, many pieces of faxing software allow you to send Word and PDF documents, and if you have faxing software (which is prevelant enough these days that the vast majority of faxing is electronic to electronic) you can chose whether or not to print the document.

[Energy Alley]

I have no complaints about the post office, it just works. I can't remember the last time we lost a package shipped USPS and USPS also seems to be the only carrier who can ship internationally without screwing up the paperwork.

UPS Brokerage Services are also a f--king nightmare,

[CertainInalienableRights]

You can send via UPS and FedEx and DHL and a few other small timeers therefore it is NOT a monopoly, not legally and not practically.

Mail and express services aren't the same thing, in real life, or according to the USPS and PES regulations. You can't send mail through anyone else than the USPS.

Fedex, DHL and UPS have to comply with very specific conditions to get the PES exception.

From the USPS link above:

"Mickey’s Moving regularly transports equipment from the headquarters of a department store to its branch stores. The department store also requests Mickey’s Moving to transport its letters along with its equipment. Mickey’s Moving agrees to do so without additional compensation because it incurs no additional expense for doing so and also builds customer satisfaction in the process. Because a business relationship exists between Mickey’s Moving and the department store, the criterion for this exception is not met."

So a company that happens to be going somewhere, and just wants to take letters along for the ride as a courtesy (for free), is committing an illegal act. If a company can't even do this, how can it possibly start a mail service to compete with USPS?

Ironically, USPS only has a monopoly on delivering letters slowly, if you want something delivered quickly, you have alternatives.

[discostu]

FedEx isn't just express services, FedEx Ground has the same speed of delivery as USPS, and you CAN send mail through it, sure they call it a "1 pound package" but they don't give a damn what's IN the "1 pound package", you pays your money you sends your thing and it CAN and often IS MAIL.

That example has NOTHING to do with the discussion, that's under the heading "Private Hands Without Compensation", we aren't talking about transporting mail without compensation, FedEx get PAID to transport mail, they ARE compensated, so attempting to use that example is a RED HERRING.

You can start a competing mail service because you CHARGE for it, therefore it is NOT without compensation therefore it is LEGAL.

BUZZZZZ wrong AGAIN, FedEx Ground http://www.fedex.com/us/ground/main/?link=4
"Cost-effective, reliable delivery in 1-5 days". Which is the same speed as USPS and you can send their "1 pound package" which could be regular mail. Not a monopoly.