Distribution Directions Vol 9 No 6 Cut Jobs, Diesel Fuel, Pallet History, Postage Increase Update

The U.S. Postal Service will cut 7,500 jobs through early retirements and a reduction in force, according to Postmaster General Patrick Donahoe. About 2,000 of those could be postmaster positions, with the remainder coming from line supervisors and administrators. Some of the targeted positions are currently vacant; the planned reductions are part of a restructuring that is supposed to save $700 million annually. While the affected jobs make up a small fraction of the Postal Service's total work force of some 676,000, they represent 10 to 20 percent of postmaster, line supervisor and administrative slots, The downsizing is supposed to begin by the end of March; Donahoe has already pruned the ranks of USPS top management mostly vice presidents, from 41 to 34, and announced the closing of an area office in Memphis. "We are taking a very deliberate and thoughtful process to try to match up how we structure ourselves with what we want to do," Donahoe said. As part of the same reorganization, the agency is also looking at closing 10 of its 74 district offices.

Source: Federal Times

Diesel Fuel to Average $3.40 This Year, DOE Says

The Department of Energy continued to boost its projected price of diesel fuel, saying it will average $3.40 this year — a jump of 17 cents from its forecast last month. That’s up from a $2.99 average last year, DOE said in its monthly short-term energy outlook. The price will climb to an average $3.52 in 2012. Gasoline also will increase, to an average $3.17 this year, also up 17 cents from last month’s forecast. That’s up from a $2.78 average last year, DOE said, and the motor fuel will rise to average $3.29 next year. “Rising crude oil prices are the primary reason for higher retail prices, but higher gasoline and distillate refining margins are also expected to contribute to higher retail prices,” the report said.

Source: Transport Topics

On The Skids / Brief History of USPS Pallets

Pallets, those plastic or wooden platforms on which mail is stacked, have been one of the most indispensable tools in the Postal Service’s mail transport equipment (MTE) inventory for decades. Though often unappreciated, pallets have been instrumental in moving mail. Until about two decades ago, the Postal Service used wood pallets. Then it developed and introduced plastic pallets. These twin-sheet thermoformed pallets — bright orange and black in color — are popular because they’re lighter, more durable, longer-lasting, and easier to stack and store than wooden ones. In recent years, many of the pallets USPS provides to the industry do not make it back to the postal network — adding millions of dollars in costs to USPS each year. USPS has launched initiatives to locate missing pallets [link].

Here are some pallet facts:

In fiscal year 2010, USPS spent about $30 million for pallets.
The Postal Service is one of the largest purchasers of plastic pallets in the U.S.
USPS pallets measure approximately 40-by-48 inches.
USPS pallets are designed to hold a maximum weight of 2,200 pounds.

Source: U.S. Postal Service

Postage Increase Update

The Postal Regulatory Commissionhas established Docket R2011-2, to receive comments on postal rate changes for market dominant products filed January 13 by the Postal Service. The rate changes, which include maintaining the current First-Class, first ounce rate at $.44, are scheduled to take effect on April 17, 2011. The PRC requires action be taken within 45 days of receipt of the Postal Service’s filing and permit a 20-day public comment period. The comment period allows the public to address the consistency of the new rates with statutory requirements, including a CPI-based price cap.

Source: PRC

< Prev Article		Next Article >