Disruption, FedEx, The Postal Industry, U S Postal Service, United Parcel Service - UPS, USPS

Waiting for the Third Shoe?

Many of my fellow 3PL and CEP cohort are anxiously aware of the current UPS / Teamsters negotiations on the UPS national contract (shoe #1.) and the FedEx / ALPA Pilots labor negotiations (shoe #2). But many of you may not know about ‘The Third Shoe’ in this year’s logistics sector cliff hanger – the US Postal Service’s current labor negotiations with its largest workforce segment, OVER 335,000 Letter Carriers delivering mail and packages to 12.7 million business addresses and 152.2 million residential addresses.

So, if even one of the trio shuts down for a few weeks, meaning the ‘brown boxes’ stopped getting delivered, and the ‘purple tails’ stopped flying, and the merry mailman stops ringing you bell this summer, who are you going to call?

NALC and the Postal Service open negotiations for sixteenth collective bargaining agreement | National Association of Letter Carriers AFL-CIO

Customs, Exporting

ACE Forms Now Available in the Modernized ACE Portal

Beginning on April 18, 2023, trade users with Importer accounts can access the ACE Forms tool via a launch button in the modernized ACE Portal. The Forms button is available on the Importer Account page.

Details on accessing ACE Forms via the modernized ACE Portal are available in the Modernized ACE Forms Quick Reference Guide.

For technical issues, contact the CBP ACE Account Service Desk (ASD) at (866) 530-4172 or ace.support@cbp.dhs.gov. 

APAC, Geopolitical Events, JAPAN, So KOREA

“Japan and South Korea Turn the Page” – March 6, 2023

For all of our Asia followers, South Korea and Japan have taken a major historic step in their relationship, culturally, politically, and strategically, which will reset the geopolitical environment in APAC for decades – The de facto resolution of their dispute over wartime conscripted labor.

Most notably, Seoul and Tokyo own this deal. It is reported that the agreement “… was driven by the parties themselves and not by Washington—indeed, at various times in recent months, U.S. officials were asked to stay out.”

Further reading and insight is found at CSIS – Center for Strategic and International Studies.

Japan and South Korea Turn the Page (csis.org)

Ofcom, Royal Mail, Univeral Service Obligation, USO

Changes to Royal Mail’s regulatory reporting requirements

March 5, 2023

Ofcom is the UK regulator of the British Postal Service. Its role is like that of the US Postal Regulatory Commission, PRC. But with one notable difference – Ofcom’s regulatory range encompasses ALL communications channels and organizations in the UK, giving it a singular, comprehensive point of view, research, analysis and regulatory outlook on communication in the UK. Regarding Royal Mail, Ofcom’s role is to ‘ensure universal postal service.’

In July 2022, Ofcom published a statement on its review of postal regulation. This included a decision to strengthen its monitoring to support the financial sustainability and efficiency of the universal postal service. In effect “Royal Mail will now be required to submit to us (Ofcom) annually a view of the financial sustainability of the universal service over a five-year period. It will also be required, every five years, to provide a detailed forecast on efficiency; and to publish two measures of its efficiency expectations from that forecast.

It will be required to report annually on its progress against those expectations.

Ofcom consulted on its proposals for these forecasts and reporting, and said this statement confirms them. The changes to the reporting requirements will come into effect at the start of the 2023-24 financial year.

The changes in reporting requirements are encompassed in the following documents.

Main documents

Statement: Changes to Royal Mail’s regulatory reporting requirements

(PDF File, 863.8 KB)

Annex 2: Statutory notification – modifications to the USP Accounting Condition (USPAC)

(PDF File, 297.4 KB)

Annex 3: Direction – modifications to the Regulatory Accounting Guidelines (RAG)

(PDF File, 917.5 KB)

Annex 4: USP Accounting Condition (USPAC) (changes marked up)

(PDF File, 285.5 KB)

Annex 5: Regulatory Accounting Guidelines (RAG) (changes marked up)

(PDF File, 929.9 KB)

Annex 6: direction under designated USP condition 1.3.2 and 1.3.2A regarding deliveries

(PDF File, 207.7 KB)

Supporting documents

Consultation: Changes to Royal Mail’s regulatory reporting requirements

(PDF File, 724.8 KB)

Annex 6: Proposed modifications to the USP Accounting Condition (USPAC)

(PDF File, 329.1 KB)

Annex 7: Proposed modifications to the Regulatory Accounting Guidelines (RAG)

(PDF File, 1.0 MB)

Annex 8: Proposed modification of the direction under Designated USP Condition 1.3.2 and 1.3.2A regarding deliveries

(PDF File, 221.8 KB)

FedEx, Last Mile

“FedEx versus UPS, Who Is Winning the Ground War?”

“FedEx versus UPS, Who Is Winning the Ground War?” Aside from the usual industry pundits, all of whom are experts, some of whom have never worked there, anecdotal evidence on the ground continues to tilt to UPS. As several news items (echoed by the above cohort) talk about FedEx Ground’s problems with its business operating model, we continue to have issues with FedEx Ground incoming delivery. Today’s event, another non-delivery, even though FedEx tracking claimed to the commercial shipper that they attempt to deliver. Our experience with UPS virtually real time delivery status updates are extremely helpful. So, with the upcoming logistics labor negotiations trifecta of UPS-Teamsters, FedEx-ALPA, and USPS NALC, it will be an interesting shipping season. Good luck merchants!