USPS Resumption Notice

International Service Resumption Notice – effective June 2, 2023

Effective Friday, June 2, 2023, the Postal Service™ will resume acceptance of mail destined to the following:

Libya

This service resumption affects the following mail classes: Priority Mail International® (PMI), First-Class Mail International® (FCMI), First-Class Package International Service® (FCPIS®), International Priority Airmail® (IPA®), and M-Bag® items.

The Postal Service is closely monitoring service impacts related to the COVID-19 pandemic and will continue to update customers until the situation returns to normal.

Please visit our International Service Alerts page for the most up to date information: https://about.usps.com/newsroom/service-alerts/international/?utm_source=residential&utm_medium=link&utm_campaign=res_to_intl

International Service Suspension Notice – effective June 2, 2023

Effective June 2, 2023, the Postal Service™ will temporarily suspend international mail acceptance to destinations where transportation is unavailable due to widespread cancellations and restrictions into the area.

Customers are asked to refrain from mailing items addressed to the following country, until further notice:

Myanmar

This service disruption affects Priority Mail Express International® (PMEI), Priority Mail International® (PMI), First-Class Mail International® (FCMI), First-Class Package International Service® (FCPIS®), International Priority Airmail® (IPA®), and M-Bag® items.

Unless otherwise noted, service suspensions to a particular country do not affect delivery of military and diplomatic mail.

For already deposited items, other than Global Express Guarantee® (GXG®), Postal Service International Service Center (ISC) employees will endorse the items as “Mail Service Suspended — Return to Sender” and then place them in the mail stream for return.

According to DMM 604.9.2.3, customers are entitled to a full refund of their postage costs when service to the country of destination is suspended. The detailed procedures to obtain refunds for Retail Postage, eVS, PC Postage, and BMEU entered mail can be found through the following link: https://postalpro.usps.com/international-refunds

Breaking: UPS-Teamsters Update

This week ICC Logistics Services was encouraged by developments related to the ongoing UPS-Teamster contract negotiations. There appears to have been some decent progress made this week, and a less aggressive tone from the Teamsters organization. 

The most positive news is that the National negotiations finally kicked off on Monday May 8th. It is interesting to note that these negotiations started, even though there were two supplemental agreements that have not been settled. 

Teamster leadership had been steadfast in their position that they would not start National negotiations until all supplemental agreement negotiations had been completed. It was encouraging to see that Teamster leadership demonstrated a little flexibility in the process. 

Internal Teamster communications took on a more positive tone as well. On May 9th, Teamster leadership communicated to their members that they made “Early Gains as UPS National Negotiations Move Forward”. 

They went on to describe that they had reached tentative agreement on five issues; greater time flexibility for shop stewards, improved processes for new equipment related grievances, more opportunities for existing Teamsters members, improvements impacting trailer shop employees, and expanded protections under the National Master Agreement’s non-discrimination clause. 

Teamster General Secretary-Treasurer Fred Zuckerman commented on the progress made with the National negotiations. He stated that “What’s most critical about these early hours of national negotiations is that big gains are already being made and the Teamsters have made zero concessions to get them.” 

Up until this point, most of the communications that Teamster that we had seen were quite negative, and accused UPS of dragging their feet and not being serious about the negotiations. This change in tone creates some hope that these negotiations will conclude early, without continued threats or the possibility of a work stoppage. 

We are not sure what has sparked the change in tone and approach that the Teamsters seem to be taking.  Maybe they are starting to realize that contentious negotiations are not good for them or the company? Maybe they read the last article that we put out on May 2nd that described the differences in the competitive landscape of the small parcel market compared to 1997, when the last UPS strike occurred. 

ICC Logistics is not the only company pointing out the damage that contentious negotiations, and strikes can have on the Teamster negotiations as well as UPS. In a Freightwaves article published on May 03, 2023, Satish Jindel president ShipMatrix provided some interesting facts to help demonstrate the impact of work stoppages.

Jindel pointed out that unionized LTL carriers had 60% of the LTL market in 1993. Then following an LTL Teamster strike in 1994, and continued diversion to non-union carriers, t

he share of volume moving through union carriers dropped to 35% by 2010. In 2023, unionized LTL carriers only handle 22% of the market. 

The bottom line is that shippers will take measures to avoid the risk of packages being held up in labor disputes. They also will continue to seek less costly alternatives. So, as unionized carrier rates continue to rise, there will be more pressure on shippers to seek out less costly options. This typically results in a volume shift to non-union carriers. The danger for the Teamsters in today’s world is that there are far more solid options for shippers today. 

So, with progress being made, the National negotiations will continue to heat up. It appears that most of the terms that have been agreed to so far are minor issues. Now, the negotiations will shift to the more difficult and contentious issues. 

On Thursday May 11th, Teamster leadership formally submitted their proposal to UPS to end the two tier wage system that is currently in place for UPS Drivers. “This will certainly be one of the biggest and most important proposals passed across the table to UPS by our committee,” said Teamsters General President Sean O’Brien. “Any two-tier wage system isn’t going to fly with the Teamsters. We are demanding equal pay for equal work. “

This proposal could be costly for UPS, so it will be interesting to see how they respond to this. Additionally, the Teamsters are pushing for higher pay for all of their UPS workers. So, the financial impact of a new UPS Teamster contract could wind up being costly for shippers. 

ICC Logistics will continue to monitor and report on these ongoing negotiations, as the outcome could have a big impact on the Small Parcel market. So, stay tuned for further developments. Also, feel free to reach out for us now to find out how you can get ahead of the potential impact of rising shipping costs. Don’t wait for shipping costs to get out of control! 

 

Why Data Accuracy is Critical

Why You Need to be Outsourcing Your Logistics and Supply Chain Data Analytics

Many companies struggle with not only how to obtain, but just as importantly, interpret Logistics and Supply Chain Data Analytics.  Without accurate data analytics it is impossible to create meaningful reports of comprehensive shipping data, and therefore inhibits a company’s ability to make sound business decisions.  

Companies should always consider outsourcing this function to firms that (1) will collect only the proper data, (2) will properly interpret that data, (3) will audit that data to ensure its accuracy and quality and (4) provide meaningful ongoing reporting so the company will be in a position to always make sound business decisions.

Outsourcing logistics and supply chain data analytics will bring several benefits to a company. 

Expertise: Outsourcing gives you access to a team of experts who have the necessary skills and experience to analyze data effectively. These experts will provide valuable insights and recommendations to optimize your supply chain operations and continually improve efficiency.

Cost-effective: Outsourcing is a cost-effective option compared to hiring a full-time team of data analysts. It will reduce overhead costs such as salaries, benefits, and infrastructure expenses.

Improved efficiency: Outsourcing lets you focus on your core business functions while leaving the data analysis to the experts. This results in improved efficiency and productivity, as you will spend more time on other critical business areas.

Access to advanced tools and technologies: Outsourcing provides access to advanced data analytics tools and technologies that may be expensive to acquire and maintain in-house. You will stay ahead of the competition and make better-informed decisions.

Scalability: Outsourcing provides a scalable solution to your data analytics needs. As your business grows, your data analytics requirements may change, and outsourcing will allow you to adapt to these changes more quickly.

Data Analytics is not a one and done process

Data analytics analysis must be an on-going process to obtain real value and businesses need to be able to trust the data that is being analyzed and reported.

The goal of any business analytics program is as follows:

The business environment is constantly evolving, and new challenges and opportunities arise regularly. Data analytics is a continuous cycle of data gathering, analysis, and action that requires monitoring.

Changing business environment: Ongoing data analytics analysis keeps businesses up-to-date with the latest trends and provides the ability to adjust their strategies accordingly.

Continuous data gathering: Businesses must continue to collect relevant data and update their analysis as new data becomes available.

Continuous improvement: By identifying areas for improvement and making necessary changes, businesses will optimize their performance and achieve better results.

Proactive decision-making: By analyzing data on a regular basis, businesses will identify potential issues before they become problems and can take corrective action to mitigate them.

Why use a qualified Third Party and Impartial resource?

Customers shipping data that is managed by a qualified third party and impartial resource is essential to obtaining clean and truly accurate logistics data for the best supply chain analytics and planning. 

Expertise: Third-party data analytics consultants have the necessary expertise and experience to manage shipping data effectively. They have access to advanced tools and technologies to identify errors and inconsistencies in data, and they provide valuable insights and recommendations based on their analysis.

Impartiality: These firms are impartial parties who provide an unbiased view of all of the data they analyze. They review the data objectively and provide feedback that is not influenced by internal biases or agendas.

Consistency: They provide consistent management of shipping data across multiple locations and carriers. They ensure that the data is accurate, complete, and up-to-date, regardless of the carrier or location.

Cost-effective: Outsourcing the management of shipping data to a qualified data analytics expert is a cost-effective option compared to hiring an internal team of data analysts or dedicating internal resources to attempt to manage the data.

Scalability: These data experts will provide a scalable solution to managing shipping data. As a business grows or changes, they will adjust their services and provide additional support as needed.

Limited resources: Companies have limited resources dedicated to managing shipping data, which will lead to errors going unnoticed. 

Internal biases: Companies inherently have internal biases that influence how they manage shipping data. They may overlook errors or inconsistencies that are not aligned with their internal priorities or goals.

The Bottom Line!

A major benefit of outsourcing your logistics data analysis is the ability to benchmark your information against a vast data pool of like shipping characteristics. This is nearly impossible to replicate in-house.

Access to a vast data pool: Data resources that is continuously updated and contains shipping data from a range of industries and companies. This data is used to benchmark a company’s shipping data against similar shipping characteristics and identify areas for improvement.

Industry expertise: Industry-specific expertise that helps companies understand how their shipping data compares to industry benchmarks. This knowledge is used to develop more effective strategies to improve supply chain operations.

Objective analysis: Provides an objective analysis of a company’s shipping data, which will identify areas for improvement that may not be immediately apparent to in-house staff. This helps companies make more informed decisions about their supply chain operations.

Cost-effective: Provides the necessary expertise, tools, and resources to conduct the analysis at a lower cost than an in-house team.

In Summary

Outsourcing your Logistics and Supply Chain Data Analytics:

  • provides a cost-effective and scalable solution that will improve efficiency, provide valuable insights, and allow you to focus on your core business functions.
  • ensures a qualified third party and impartial resource obtains clean and truly accurate logistics data for the best supply chain analytics and planning. 
  • Has the necessary expertise, impartiality, and scalability to manage shipping data effectively and efficiently.
  • enables businesses to stay current, continuously improve their operations, and make proactive decisions based on accurate and up-to-date information.
  • enables companies to identify and address weak points in their supply chain models and improve overall supply chain performance.
  • guarantees 100% accurate logistics data while also providing valuable benchmarking against a vast data pool of like shipping characteristics. 
  • Ensure companies are using best-in-class marketplace standards. 

Reach out to us today to learn how we can help you achieve your goals.

USPS Pricing Updates and Improvements

USPS Ground Advantage Reduces Prices, Simplifies Shipping Solutions and Improves Service Reliability

The United States Postal Service has filed with the Postal Regulatory Commission, (PRC) to adjust prices for some shipping services and enhancing ground shipping solutions.

The U.S. Postal Service today established proposed published pricing for its new product offering, “USPS Ground Advantage.”  Pending favorable review and comments from the Postal Regulatory Commission, USPS Ground Advantage would launch on July 9.  At launch, USPS Ground Advantage would provide a simple, reliable and more affordable way to ship packages up to 70 lbs. in two-to five business days.

USPS Ground Advantage Will Feature

  • $100 insurance included for both retail and commercial customers, USPS Ground Advantage outbound and return parcels.
  • Package forwarding and return to sender endorsements will be included for the USPS Ground Advantage product offering.
  • Free package pickup on the carrier’s route.

Published prices for USPS Ground Advantage will decrease 1.4 percent relative to current Parcel Select Ground and First-Class Package Service pricing. USPS Ground Advantage Retail prices will decrease 3.2 percent and USPS Ground Advantage Commercial published prices will decrease 0.7 percent.

Over the past year the Postal Service has focused on strengthening its shipping solutions as part of its 10-year strategic plan for service excellence, on-time delivery, and revenue generation from enhanced package delivery services. With more than 31,000 Post Offices, various pickup options, including free package pickup, and no surcharges for fuel or residential delivery, the Postal Service provides exceptional value and convenience to customers.

Shipping Service prices are primarily adjusted according to market conditions. The Postal Service governors evaluate shipping rates and fees and adjust them when needed as part of the Postal Service’s 10-year ‘Delivering For America” plan to return the organization to financial sustainability and achieve service excellence while maintaining universal six-day mail delivery and expanding seven-day package delivery.

The complete Postal Service price filings with prices for all products can be found on the PRC website under the Daily Listings section at prc.gov/dockets/daily. The Postal Service provides additional resources to assist customers regarding price changes. These tools include price lists, downloadable price files and Federal Register Notices. This information will be available on the Postal Service’s Postal Explorer website at pe.usps.com/PriceChange/Index.

Could this new USPS service and price reduction be viewed as an option for parcel shippers just in case the Teamsters decide to stage a work stoppage at UPS?  We’ll just have to wait and see.  Reach out to us if you have questions about how this new pricing and improved service offerings will affect your operations.

How to Find the Right Logistics Partner

From Chaos to Control: Selecting The Perfect Logistics Partner and Carriers

When selecting a logistics services supplier, there are several key factors to consider:

By considering these factors, you will choose a logistics services supplier that meets your needs and helps you streamline your supply chain for maximum efficiency and cost-effectiveness.

How do I find, select, and manage logistics suppliers to meet my company’s needs and goals? 

You can find logistics suppliers through various channels, including online searches, industry publications, trade shows, and referrals from other businesses. However, the best source for finding the “best of the best” logistics service providers is to rely on industry experts who have first-hand experience on which suppliers would be best for your business.  Remember this is a not “one size fits all” business decision.  All potential suppliers should be evaluated based upon the factors listed above, and we can help you with that process by also considering their physical locations and the types of goods they may specialize in servicing.

Once you have selected a logistics supplier, it is important to establish clear communication channels and expectations. You should conduct regular reviews of their performance to ensure that they are meeting, and hopefully, exceeding your needs and goals. 

You should also consider implementing a formal supplier management program, to help track performance metrics, identify areas for improvement, while building a stronger relationship with your logistics suppliers and carriers. This can help ensure that your logistics operations are efficient, reliable, and cost-effective.

How can I build long-term partnerships with my suppliers and carriers?

Building long-term partnerships with your suppliers will be mutually beneficial for both parties.   

  • Communicate regularly: Establish open lines of communication with your suppliers and regularly provide feedback on their performance. This will help identify issues early on, and work together to resolve them.
  • Build trust: Trust is a critical component of any successful partnership. Be transparent about your expectations, treat your suppliers fairly, and follow through on your commitments.
  • Foster collaboration: Encourage your suppliers to collaborate with you on finding ways to improve your business operations. This will help build a sense of partnership and shared goals.
  • Provide incentives: Offer incentives to your suppliers for meeting or exceeding performance goals. This will motivate them to go above and beyond in delivering value to your company.
  • Share information: Share all relevant information with your suppliers to help them better understand your business needs and goals, this way they can tailor their services to better meet your needs.
  • Invest in supplier development: Invest in developing the capabilities of your suppliers. This can help them become more valuable partners over time.
  • Conduct periodic reviews: Regularly evaluate your suppliers’ performance and provide feedback. This will help you identify areas for improvement and work together to address any issues.

Read more

USPS New Requirements

US Postal Service Implements New Requirements for Using Electronic Indicator for Hazardous Materials

On April 21, 2023, the US Postal Service issued its final rule requiring Electronic Indicators when shipping Hazardous Materials (HAZMAT) and Dangerous Goods (DG). The final rule will require use of Service Type Codes (STCs) specific to HAZMAT/DG shipments effective July 9, 2023. The final rule also states that effective January 21, 2024, mailers of HAZMAT/DG must implement the new two-dimensional barcode or Intelligent Mail Matrix Barcode (IMmb) when shipping, in addition to the existing Intelligent Mail Package barcode (IMpb). On November 30, 2022, the Postal Service issued a proposed rule outlining several proposals to improve identification and processing of HAZMAT/DG goods.

In this final rule, the Postal Service revises Publication 52, Hazardous, Restricted, and Perishable Mail (Pub 52) to incorporate new requirements for mailers to use unique STCs and extra service codes (ESCs) within the tracking barcodes and electronic data submission for package shipments containing HAZMAT or DG. This rule standardizes the acceptance and handling of shipments containing HAZMAT/DG by collecting electronic data and will allow the Postal Service to create electronic manifests for the Postal Service’s air carrier suppliers. The following items are clarified in this rule:

  • When shipping HAZMAT internationally, dangerous goods (DG) terminology is used rather than HAZMAT.
  • HAZMAT and DG are not eligible to be mailed in letter or flat-sized mail pieces.
  • These new requirements are in addition to current Pub 52 regulations and do not exempt mailers from complying with existing standards.
  • When shipping to Army Post Office (APO), Fleet Post Office (FPO) or Diplomatic Post Office (DPO) destinations, mailers must follow international DG regulations. This mail is only treated as domestic for pricing purposes.
  • Packages being sent domestically containing new electronic devices, in original unopened packaging or manufacturer certified new or refurbished devices, that bear no lithium battery marking, are exempt from applying STCs and ESCs. This exemption does not apply to packages being sent internationally or to APO/FPO/DPO destinations.

These packages must meet the following:

  1. Only button cell batteries installed in equipment; or
  2. no more than 4 lithium cells; or
  3.  two lithium batteries installed in the equipment they operate, (e.g., cell phones, tablets, digital readers, or glucose monitors etc.) are not required to bear the lithium battery mark. and
  4. when there are no more than two mail pieces in a single consignment, per Pub 52, Section 349.
  • The Federal Register Notice, 87 FR 73459 published on 11/30/2022, required mailers to provide physical separation of HAZMAT/DG from non-HAZMAT/DG packages. Upon full implementation of the electronic indicators on July 9, 2023, mailers may submit a request for a release from the requirement to separate HAZMAT/DG from non-HAZMAT/DG when tendering to the Postal Service. Internal Postal Service data will be utilized to validate compliance with this rule prior to approving customer release of the separation requirement. The requests can be submitted to the Director, Product Classification, 475 L ‘Enfant Plaza, SW Rm 4446, Washington DC 20260-5015.

The final rule recommends mailers to adopt usage of the appropriate ESCs for the type of HAZMAT being shipped, the inclusion of “H” in the Service Box on shipping labels and adding the word “HAZMAT’ within the banner text with the standard Intelligent Mail package barcode (IMpb) for domestic shipments. The final rule also includes the STC and ESC tables for all HAZMAT/DG. Mailers and Customers can find the final rule on the Federal Register website link:

https://www.federalregister.gov/documents/2023/04/21/2023-08479/electronic-indicators-for-the-mailing-of-hazardous-materials

The Postal Service is revising Publication 52, Hazardous, Restricted, and Perishable Mail (Pub 52), to incorporate the new requirements. Although, effective July 9, 2023 and January 21, 2024, the Postal Service will incorporate these revisions into the next edition of Pub 52, which will be available via Postal Explorer at pe.usps.com.

For more details or if you have any questions, please reach out to ICC; we’re here to help!