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MARKET FLASHA fortnightly newsletter covering the latest news from the global postal sector

Issue 528

17 March 2016

MARKET INTELLIGENCE

2016

IN THIS ISSUE

© 2016 - IPC.be THE NATURAL PARTNER FOR THE POSTAL INDUSTRY MARKET FLASH | ISSUE 528 | TOP STORY | PAGE 2

TOP STORY• ATSG confirms Amazon air transport network deal

AMERICAS • UPS Worldwide Express Package Service expands to 23 new countries• Air express fuel surcharges continue to drop in March• Recession-proof retail

ASIA PACIFIC• Australia secures Tmall e-Commerce deal for China• Building starts on state-of-the-art New Zealand Post Group Southern

Operations Centre at Christchurch Airport

EUROPE• Austrian Post sells German subsidiary trans-o-flex• Deutsche Post DHL meets 2015 earnings forecast • Deutsche Post DHL extends parcel network across the Nordics and Baltics• Online fashion retailer Zalando expands same-day deliveries and invests in

logistics• Correos to install parcel lockers in Vodafone offices• Swiss Post meets quality expectations• Swiss Post’s Good result in increasingly difficult environment• Nordic consumers spend over SEK160bn online in 2015• Morrisons to enter supply arrangement with Amazon

> TOP STORYTSG CONFIRMS AMAZON AIR TRANSPORT NETWORK DEALAircraft leasing and air cargo transportation provider, Air Transport Services Group (ATSG) Inc., has announced agreements with Amazon Fulfillment Services, Inc., an affiliate of Amazon.com, Inc. to operate an air cargo network to serve Amazon customers in the US.

News of Amazon’s collaboration with ATSG follows months of speculation that the online retail giant has been trialling its own air freight operation in the US and Europe with a view to operating it on a scheduled year-round basis with a dedicated fleet of aircraft. Analysts argue that Amazon has been moving in this direction in order to avoid delays from carriers such as UPS which have struggled to keep up with the rapid growth of e-Commerce.

The commercial agreements will include the leasing of 20 Boeing 767 freighter aircraft to Amazon Fulfillment Services, Inc. by ATSG’s Cargo Aircraft Management (CAM). The duration of the leases will be five to seven years, and the agreement covering operation of the aircraft will be for five years.

In conjunction with the commercial agreements, ATSG also has agreed to grant Amazon warrants to acquire over a five-year period up to 19.9% of ATSG’s common shares at US$9.73 per share, based on the closing price of ATSG common shares on February 9, 2016.

Source: CEP-Research

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> AMERICASUPS WORLDWIDE EXPRESS PACKAGE SERVICE EXPANDS TO 23 NEW COUNTRIESUS courier company, UPS has expanded its UPS Worldwide Express package service to 23 additional countries and territories, creating an earlier guaranteed-delivery option for customers in locations that previously had only end-of-day guarantees.

World Trade Organisation economists predict trade growth of nearly 4% in 2016, and UPS is anticipating the growth with their latest expansion. The expansion of UPS Worldwide Express service will give customers the guaranteed time-of-day deliveries they need to thrive as international trade continues to grow. The expansion will cover growing markets such as Colombia, Saudi Arabia and Vietnam, which are becoming increasingly important to the global trade.

Source: UPS

AIR EXPRESS FUEL SURCHARGES CONTINUE TO DROP IN MARCHFuel surcharges for international air express shipments have continued to fall in March while FedEx and DHL reduced their US surcharges to zero this month, CEP-Research analysis has shown.

In Europe, all the four integrators reduced their surcharges in March. FedEx’s surcharge went down from 7% in February to 5.5%. Similarly, UPS reduced its surcharge to 8.25% this month, down from 9% in February. Deutsche Post DHL’s surcharge dropped from 9% last month to 7.75%, TNT reduced its European surcharge to 11.5% this month, down from 12.25% in February.

In the US, FedEx and DHL both reduced their surcharge from 0.75% in February to 0% in March. UPS also put down its surcharge from 3% last month to 2.25% in March. TNT was the only integrator to keep its US surcharge in March at the level of the last four months of 6%.

In Asia Pacific, all the four integrators reduced their surcharges this month as well. FedEx reduced its surcharge from 4.5% in February to 2.5% in March. The UPS surcharge also fell to 5.75% this month, down from 7% in February. Similarly, DHL also put down its Asia surcharge from 9% last month to 7.75%, which was also the case with its European surcharge. TNT’s Asia surcharge also dropped from 11.75% in February to 11.25% this month.

The air express fuel surcharges in March reflect the respective oil price levels two months ago. The four integrators calculate their surcharges based on indices showing the previous month’s oil price level and announce them in advance for the following month. This results in a two-month time lag between the fuel price and surcharge change.

Source: CEP-Research

> AMERICAS

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> ASIA PACIFICAUSTRALIA POST SECURES TMALL E-COMMERCE DEAL FOR CHINAIn a first-of-a-kind partnership with Australia Post, the Andrews Labor Government is helping Australian businesses tap into China’s multi-billion dollar e-Commerce market by providing access to buyers through China’s leading online sales platform, Tmall.

Tmall, owned and operated by the Alibaba Group, is an online marketplace that allows businesses to sell their products directly to consumers in China without the expenses associated with international travel or having a regional retail presence. Last financial year, Tmall sales were up 68% on the previous year, exceeding AU$17bn. The Chinese e-Commerce market is the world’s largest, with an estimated 649m Internet users spending more than AU$250bn each year.

This deal will allow local business owners and operators to engage with China’s key buyers without worrying about supply chain logistics, translations and customer service.

Source: Australia Post

RECESSION-PROOF RETAILThe growth of the e-Commerce sector in Asia has had dire implications for conventional retailers in the Chinese market. With consumers migrating online, lured by lower prices, wider selections and convenient delivery options, the high-street trader has seen footfall drop and margins slashed, with many now struggling to break even.

However, a Tokyo-based fashion outlet, Miniso has been created to counter-act this effect. After making its high street debut in 2013, it was soon a fixture in nearly every major city in the Chinese mainland. The outlet is said to offer a range of products, with new items introduced weekly. Today, it has more than 1,000 mainland stores, with outlets in many leading malls and shopping streets.

In China, the group prides itself on only working with premier suppliers, and many such products are then offered throughout its global network. Currently, about 80% of its products are sourced from some 800 mainland manufacturers. In the midst of the challenging times currently facing the department store industry, Miniso’s success seems even more impressive.

Source: HKMB

NEW ZEALAND POST’S OPERATIONS CENTRE AT CHRISTCHURCH AIRPORTBuilding work has begun on a purpose-built overnight courier, parcels, processing and distribution hub for New Zealand Post, at Christchurch Airport’s Dakota Park. New Zealand Post and Christchurch International Airport Limited finalised an agreement two weeks ago for New Zealand Post to lease a new building adjacent to a new runway facility servicing our upgraded air fleet.

New Zealand Post Chief Operating Officer Service Delivery Ashley Smout said the facility is due to be completed in May 2017 and will be a significant strategic asset for the New Zealand Post Group.

Source: New Zealand Post

> ASIA PACIFIC

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> EUROPEAUSTRIAN POST SELLS GERMAN SUBSIDIARY TRANS-O-FLEXAustrian Post has reached an agreement with a strategic investor on the sale of its German subsidiary trans-o-flex, a logistics company with revenue of €500m, focusing on providing transport solutions for the pharmaceutical, healthcare and consumer electronics sectors in Germany. In recent years, trans-o-flex was strongly challenged by the difficult market environment in the highly competitive German parcel and logistics market

The business development of Austrian Post during 2015 was positive, in line with the trends prevailing in the first nine months of the year. Group revenue rose by 1.6% from €2.363,5m in the previous year to €2.401,9m in 2015.

In terms of volumes generated by the Mail & Branch Network division, the volumes in the Letter Mail business showed a 4% decline, whereas total volumes in the Direct Mail and Media Post segment rose by 1%. Branch Services revenue remained stable in 2015 compared to previous years.

Source: Austrian Post

DEUTSCHE POST DHL MEETS 2015 EARNINGS FORECAST Deutsche Post DHL Group has increased revenue in 2015 and met its forecasted operating profit. Following a very strong fourth quarter, operationally the best in the company’s history, consolidated EBIT for full-year 2015 amounted to €2.41bn. The Group had targeted a figure of at least €2.4bn. The EBIT contribution of the Post – e-Commerce - Parcel (PeP) division amounted to €1.1bn, as forecasted, and the DHL divisions generated an operating profit of €1.66bn.

The Group is also maintaining its targets beyond 2016: Deutsche Post DHL Group continues to forecast an increase in operating profit by an average of more than 8% annually during the period from 2013 to 2020 (CAGR). The DHL divisions are expected to contribute to the improvement with average EBIT growth of 10% per year. Operating profit for the PeP division is expected to increase by an average of around 3% per year. The Group additionally targets expenses for Corporate Center/Other at less than 0.5% of consolidated revenue by 2020.

Source: Deutsche Post

DEUTSCHE POST DHL EXTENDS PARCEL NETWORK ACROSS THE NORDICS AND BALTICSDeutsche Post DHL together with the Finnish postal operator Posti, and Bring, a subsidiary of Posten Norge, the Norwegian postal operator, have joined forces and will offer a dedicated B2C infrastructure for parcel deliveries across Scandinavia, Finland and the Baltic states. The expansion is in line with DHL’s strategy to develop the e-Commerce market in Europe and to offer its customers a well-developed infrastructure. In just two years, DHL Parcel has increased its network footprint to now 16 of the most important European e-Commerce markets and offers online retailers a harmonised network with standardised services.

According to a recent EU Commission report, today’s e-Commerce volume in the Nordics and Baltics, approximately €22.8bn, will grow by 6% per annum until 2020. In the Nordics and Baltics, people are particularly open to online retailing and are above-average users of this service as their expenditures per person significantly exceed the European average.

Source: Deutsche Post

> EUROPE

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> EUROPEONLINE FASHION RETAILER ZALANDO EXPANDS SAME-DAY DELIVERIES AND INVESTS IN LOGISTICSGerman online fashion retailer Zalando is investing in new delivery services and fulfilment centres in Europe after a strong 34% revenue increase in 2015 and is targeting revenue growth of up to 25% this year.

Last month, the fashion and shoe retailer launched a free pick-up service for products that don’t fit and need to be returned. The pick-up service for returns is now being tested in Cologne and Amsterdam in partnership with Liefery, following successful tests in London.

In terms of its fulfilment footprint, Zalando is now constructing its fourth logistics centre in Germany, located in Lahr, Baden-Württemberg, with an overall investment amounting to about €130m. The facility is due to start test operations in autumn 2016.

The new facility will allow Zalando to serve customers in southern Germany, Switzerland and France even faster and to keep up with growing demand. About 1,000 jobs are due to be created at the site located in the Upper Rhine region.

Source: CEP-Research

CORREOS TO INSTALL PARCEL LOCKERS IN VODAFONE OFFICESSpanish postal group Correos will install ‘CityPaq’ parcel lockers in various offices of mobile phone operator, Vodafone across the country as it aims to speed up the rollout of the self-service terminals.

The CityPaq lockers will be available to users throughout the opening hours of the building where they are located. The terminals each have up to 80 compartments of different sizes that can be adapted to the size of the parcel.

Source: CEP-Research

SWISS POST MEETS QUALITY EXPECTATIONSLast year, Swiss Post processed around 2.2bn addressed letters, with 97.8% of all A Mail letters being delivered on time, and 98.9% of all B Mail letters arriving on schedule.

In 2015, Swiss Post transported over 115m parcels, representing an increase in volume of 3% over the previous year. Despite this high number, the delivery quality remained high. In 2015, 97.5% of all PostPac PRIORITY parcels and 97.5% of all PostPac ECONOMY parcels were delivered on time. Swiss Post assumes that online trade will continue to grow by around 1-2% annually over the coming years. In order to guarantee high quality and punctuality going forward, Swiss Post is upgrading its parcel centres. Thanks to investments totalling around CHF60m, the centers’ sorting capacities are being increased by around 25%.

According to the directives, 97% of all letters and 95% of all parcels have to be delivered on time within Switzerland. These are the strictest requirements in Europe.

Source: Swiss Post

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> EUROPESWISS POST’S GOOD RESULTS IN AN INCREASINGLY DIFFICULT ENVIRONMENTSwiss Post recorded a Group profit of CHF645m in 2015, while operating profit (EBIT) stood at CHF823m. The slight increase is mainly due to changes in the carrying amounts in the financial services market. For the year 2015, Group profit stood at CHF645m, which represents an increase of CHF7m. At CHF823m, operating profit (EBIT) is CHF20m up on the previous year’s figure. Operating income was down by CHF147m to CHF8,224m. Total assets fell from CHF124.67bn to CHF120.33bn.

In three of the four markets, operating income was stagnant or declined. In the communication market, the three segments PostMail, Swiss Post Solutions and Post Offices & Sales generated an overall operating profit of CHF263m. At PostMail and Post Offices & Sales, the volume of addressed letters fell by 1.4% year-on-year, while the number of unaddressed items decreased by 1.7%. With operating income of CHF2,820m, PostMail was the main contributor to operating income in the communication market. PostMail’s operating profit stood at CHF358m. A decrease in income due to lower volumes was more than offset by the reduction in operating expenses.

Source: Swiss Post

NORDIC CONSUMERS SPEND OVER SEK160BN ONLINE IN 2015Nordic consumers purchased goods online worth a total of SEK161.6bn in 2015, an increase of around 15% over last year’s figure. Purchases made from international sites during the year totalled SEK40bn in value, as revealed by PostNord’s e-Commerce in the Nordics 2016 report.

In 2015, 40% of all Nordic residents bought goods online from international websites. The most popular countries to buy from were the UK (36%), Germany (25%), the US (23%), and China (23%), while Sweden (13%) was also popular. Norway recorded the highest percentage in this category (50%), followed closely by Finland (49%).

While there are many similarities between online shoppers in the Nordic region, there are also national differences. For example, Danes have high expectations concerning fast deliveries and value the option to have goods delivered to their workplace, to a parcel machine, or to their home during daytime hours. Swedes and Norwegians prefer to have parcels delivered to their home mailboxes, or to pick them up from partner outlets. Finnish consumers are the most patient among Nordic residents when it comes to delivery times, and prefer to pick their mail items up

from partner outlets.

In Denmark and Norway, one in four consumers uses tablets to make purchases. In Sweden, one in five consumers uses their cell phone to shop online, whereas in Finland, e-Commerce using mobile devices is significantly less common (tablet, 15%; cell phone, 12%).

Source: PostNord

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> EUROPEMORRISONS TO ENTER SUPPLY ARRANGEMENT WITH AMAZONUK supermarket chain, Morrisons and Amazon have announced a new supply agreement. In the coming months, hundreds of Morrisons products will be available to Amazon Prime Now and Amazon Pantry customers. Morrisons will provide a wholesale supply service to Amazon, allowing Amazon’s customers access to a wide range of Morrisons ambient, fresh and frozen products.

In addition, Morrisons has been in discussions with Ocado to grow Morrisons.com and an agreement in principle has been reached. This involves Morrisons taking space in Ocado’s new Customer Fulfilment Centre (“CFC”) in Erith, and Ocado delivering a store pick solution for Morrisons that leverages Ocado’s technology and Morrisons store assets. When implemented, this would enable Morrisons.com, working with Ocado, to sell to customers all over Great Britain.

This amended agreement is subject to detailed terms being agreed and will only proceed if it enables Morrisons to achieve profitable growth online. There can be no certainty that an agreement will be concluded.

Source: Morrisons

www.ipc.be

GREEN SPECIAL

17 March 2016

Quarterly newsletter on sustainability initiatives in the postal sector

2016SUSTAINABILITY

IN THIS ISSUE

© 2016 - IPC.be THE NATURAL PARTNER FOR THE POSTAL INDUSTRY MARKET FLASH – GREEN SPECIAL | ISSUE 528 | EUROPE | PAGE 10

> TOP STORYTOP STORY• IPC’s EMMS group efficiency target approved by SBT

AMERICAS • USPS rewarded for sustainable practices• UPS named one of world’s most ethical companies for tenth consecutive year• USPS CSO rewarded by the Environmental Protection Agency

ASIA PACIFIC • Australian community encouraged to apply for Our Neighbourhood Community

Grants• Making plastic fantastic: closing the gap on mailing satchels• Co-vehicles confirmed as way of the the future for New Zealand Post• New Zealand Post gains Enviro-Mark Platinum certification

EUROPE• An Post’s Sustainability team spread the word on energy savings• Spanish Operator, Correos adds more electric vehicles to its fleet • Customers reduce their carbon footprint with Deutsche Post DHL’s new green

service• Deutsche Post DHL publishes its 12th Corporate Responsibility Report• How PostNL is taking care of parcels and the environment• Nexive sets example in Italy • Royal Mail joins the UK’S logistics carbon reduction scheme• Recycling clothes at Swiss Post• CTT’s Ecoportfolio - Giving the market what it wants• Portuguese CTT expands EV fleet

IPC’S EMMS GROUP EFFICIENCY TARGET APPROVED BY SBTIPC’s Environmental Measurement and Monitoring System (EMMS) group carbon efficiency target (20% emissions reduction per letter mail and per parcel by 2025, from a 2013 baseline) has been approved as a sectoral benchmark by the Science Based Targets (SBT) Technical Review and Steering Committee following an official quality check.

The group’s 20% efficiency improvement target therefore ensures that its targeted emission reductions are in line with the reductions that are required to meet the IPCC’s recommended goal of limiting global warming to 2°C.

This great achievement has already been published on the Science Based Targets and CDP websites, placing the IPC EMMS within a group of some of the largest global companies: IPC is one of the 12 companies listed on the Science Based Targets website for having successfully developed science based targets.

The IPC EMMS has already proven its success by achieving the original EMMS programme goals in reaching its 20% absolute emissions reduction target last year, a full six years ahead of schedule. IPC is confident that by continuing their commendable emissions reduction efforts, the EMMS group will be able to achieve this new and challenging delivery efficiency target.

Find out more on the new EMMS Efficiency Target.

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> AMERICASUSPS REWARDED FOR SUSTAINABLE PRACTICESUSPS has been awarded by The Environmental Protection Agency recently for reducing waste at 22 facilities across the country, including its Washington, DC, headquarters. The award was given through WasteWise, an EPA programme to promote sustainable management practices.

In receiving the award, the Postal Service cited a lighting upgrade at the Providence, RI, P&DC. Once completed, the upgrade will net US$535,000 in total annual savings and reduce electricity use by 5.3kw an hour. USPS also received special recognition by the International Post Corp. for its role in reducing carbon dioxide emissions.

Source: USPS

USPS CSO REWARDED BY THE ENVIRONMENTAL PROTECTION AGENCY The Environmental Protection Agency (EPA) has honoured USPS employee, Tom Day, Chief Sustainability Officer, for leading the Postal Service’s response to climate change.

Day received a 2016 Climate Leadership Award for overseeing efforts to reduce greenhouse gas emissions by 20% by 2020. Day leads the Postal Service’s sustainability initiatives, including efforts to increase recycling, prohibit employees from using chemicals that can produce hazardous waste and plan for the effects of climate change.

Source: USPS

UPS NAMED ONE OF WORLD’S MOST ETHICAL COMPANIES FOR TENTH CONSECUTIVE YEARAmerican courier company, UPS has announced that they have been recognised as one of the “World’s Most Ethical Company” for the 10th consecutive year by the Ethisphere Institute.

The award recognises those companies that align principle with action and shape future industry standards by introducing tomorrow’s best practices today. The Ethisphere Institute will release best practices and insights from the 2016 honourees, including UPS, later in the year through a whitepaper and infographics.

The World’s Most Ethical Company assessment is based upon the Ethisphere Institute’s Ethics Quotient (EQ) framework. Scores are generated in five key categories: ethics and compliance programme (35%), corporate citizenship and responsibility (20%), culture of ethics (20%), governance (15%) and leadership, innovation and reputation (10%) and provided to all companies who participate in the process.

UPS has also recently been awarded with several other corporate citizenship and sustainability distinctions. The company received a perfect score of 100 from the CDP for the second straight year, was a recipient of the US Environmental Protection Agency’s (EPA) SmartWay Excellence Award, included on the Dow Jones Sustainability World Index (DJSI World) for the third consecutive year and was named as one of the “100 Best Corporate Citizens” by CR Magazine for the sixth consecutive year.

Source: UPS

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> ASIA PACIFICAUSTRALIAN COMMUNITY ENCOURAGED TO APPLY FOR OUR NEIGHBOURHOOD COMMUNITY GRANTSAustralia Post has opened their 2016 draw of the “Our Neighbourhood Community” grant programme, which allows a one-off cash payment of AU$10,000 to community organisations.

The programme was created to recognise the importance of small charities and community groups across Australia that benefit those who want to build an inclusive and connected society.

In 2016, Our Neighbourhood Community Grants will be awarded to community organisations and projects that focus on the following areas: Digital Capability (projects that build digital skills for individuals and the wider community), Employment Pathways (projects that increase employment opportunities for marginalised people), Community Inclusion (projects that build community spirit and foster inclusion) and Disaster Readiness (projects that help communities better prepare for natural disasters).

Source: Australia Post

MAKING PLASTIC FANTASTIC: CLOSING THE GAP ON MAILING SATCHELS

With more businesses using the convenience of online shopping for their daily needs, Australia Post is encouraging citizens to recycle their used plastic mailing satchels via a new free national recycling programme, the “Australia Post Mailing Satchel Brigade”.

As part of the ongoing partnership between recycling company, TerraCycle and Australia Post, customers across Australia can now post their used plastic mailing satchels for free to TerraCycle to have them turned into material used to not only help build recycled products such as park benches and industrial items but help fund charities too.

The programme enables all Australia Post customers the participate in a truly national recycling program as not all Australian councils have the capacity to recycle package waste through roadside collection.

Source: TerraCycle

CO-VEHICLES CONFIRMED AS WAY OF THE FUTURE FOR NEW ZEALAND POSTNew Zealand Post is making investments in its parcel and mail business with the addition of new Paxster electric delivery vehicles to its fleet.

A total of NZ$15m has been set aside for the purchase of the vehicles over the next two years from Norwegian manufacturers Paxster AS with the first shipment of 50 Paxsters due to arrive in mid-2016. The four-wheeled battery powered vehicles will be used for the combined delivery of parcels and mail in residential areas in larger centres nationwide starting in parts of Auckland later this year.

The four-wheeled vehicles carry loads of up to 200kg but are still small enough to be used on the footpath. They have been part of a successful pilot of combined parcel and mail delivery in Taranaki and have been tested in road trials in Auckland and Wellington.

The vehicles will be used in areas where the terrain is suitable and where permission has been granted by the local council. New Zealand Post is now working with staff and unions on detailed plans for the national rollout.

Source: New Zealand Post

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> ASIA PACIFICNEW ZEALAND POST GAINS ENVIRO-MARK PLATINUM CERTIFICATIONNew Zealand Post has achieved an Enviro-Mark Platinum certification for its Mailhouse Operations in Auckland and Christchurch, after working through the Enviro-Mark five-step Environmental Management System (EMS) programme.

Administered by Enviro-Mark Solutions - a wholly owned subsidiary of Landcare Research- and independently audited, Enviro-Mark. The EMS programme assesses New Zealand Post’s performance against agreed standards, legislative compliance, internal processes and continuous improvement practices.

Source: New Zealand Post

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> EUROPEAN POST’S SUSTAINABILITY TEAM SPREAD THE WORD ON ENERGY SAVINGSIrish postal operator, An Post held an Energy Awareness Day in Dublin for their head office staff in March. The Company has been reducing energy across its 180 buildings nationwide, achieving a 3% energy reduction across its building stock in 2015. The Sustainability team also want staff to be aware of the potential energy and cost savings in their own homes.

An Post partnered with Energy Management Company, Enprova to create a one-to-one consultation for staff who were interested in finding out about energy saving technology including insulation, solar heating and heating upgrades. Staff were also given information on and advice about the best way to access government funded energy saving grants, which homeowners can apply for when they are carrying out energy saving works on their homes.

An Post intends to trial home energy saving technology with selected staff to further highlight the potential energy and cost savings for staff in their own homes.

Source: An Post

SPANISH OPERATOR, CORREOS ADDS MORE ELECTRIC VEHICLES TO ITS FLEET Spanish postal operator, Correos has added more electric vehicles to its growing fleet in a bid to reduce emissions.

The electric vehicles are part of the Plan 100-300 initiative, hosted by the OPT (Transformation Project Office), which funds projects in the areas of economy, energy use and the environment. The new project will see Correos increasing the number of their electric cars and motorcycles from 25 to 100, according to the needs of the company in terms of cargo, technical performance and the requirements demanded by citizens.

Source: Correos

CUSTOMERS REDUCE THEIR CARBON FOOTPRINT WITH DEUTSCHE POST DHL’S NEW GREEN SERVICEDeutsche Post DHL Global Forwarding has become the first to launch a new green service that allows customers to opt for carbon efficient ocean freight. The new Green Danmar service is an initiative that allows customers to select a carrier for full container shipping, that is over 5% more carbon efficient than the industry average.

The newly launched green service can be optionally selected by customers using DHL Ocean Direct FCL (Full Container Load). Through a strict vendor management process, carriers whose carbon efficiency (g CO2/TEU (Twenty-foot Equivalent Unit) km) is at least 5% above the industry average are identified. Since 2007, DHL Global Forwarding has improved its carbon efficiency in ocean freight by over 40%. The result can be tracked back to the technological progress of the industry, such as the introduction of bigger and more efficient ocean vessels, and secondly, to DHL’s carrier management and selection approach.

Source: Deutsche Post DHL

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> EUROPEDEUTSCHE POST DHL PUBLISHES ITS 12TH CORPORATE RESPONSIBILITY REPORTOn March 9, Deutsche Post DHL Group published its 12th Corporate Responsibility (CR) Report. “Essential” - the title of the report - underscores the value placed on responsible business practice at Deutsche Post DHL Group. The Group was again listed in the Dow Jones Sustainability (DJSI) World and Europe Indices, and for the second time received a top AAA rating from MSCI. In the CDP Climate Change programme, DHL was awarded the highest possible score of 100A for its environmental protection programme.

Carbon efficiency remains the Group’s most important environmental KPI. In the reporting year, Deutsche Post DHL Group increased the carbon efficiency of its operations by one index point over the previous year. Now at 25%, the Group is another step closer to achieving its climate change target of improving carbon efficiency by 30% by 2020 compared to the base year 2007.

A wide range of measures have contributed to this success: These include the first 500 electric StreetScooter vehicles developed by the Group. In 2015, around 22,500 efficiency measures like aerodynamics, telematics or eco chip tuning were applied to 13,500 vehicles. In addition, the number

of alternative vehicles rose: from around 350 electric vehicles, the fleet increased to 937 electric drive vehicles in 2015.

The report, which can be accessed in full at www.dpdhl.com/cr-report2015 sets out Deutsche Post DHL Group’s key social, economic and environmental activities in the reporting year. It also reports on strategic decisions made, measures introduced and targets achieved in 2015.

Source: Deutsche Post

HOW POSTNL IS TAKING CARE OF PARCELS AND THE ENVIRONMENTAt the end of 2015, PostNL opened a new sorting and delivery centre for their parcels network. With 18 locations so far – and more to come – PostNL has realised a future-proof network for the growing parcel volumes and contributing to the company’s sustainability objectives.

In the design process for the new sorting and delivery centres, sustainability became an important aspect, which has resulted in multiple ways to lower the impact on the environment. For instance, the depots make optimum use of daylight and have a logistic process built to safe energy as much as possible. Also, the new sorting machines use 75% less energy than the old ones, the combination of a sorting and distribution centre also allows PostNL to lower the need to build new locations and creates less linehaul.

This year, PostNL is continuing their efforts into making the company more sustainable, and will use solar panels which will supply up to 40% of the new depots energy demands.

Source: PostNL

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> EUROPENEXIVE SETS EXAMPLE IN ITALY Since 2015, PostNL’s Italian business, Nexive has begun sourcing all of their energy from renewable sources in a bid to lower the overall emissions levels.

While the use of totally renewable energy sources is still relatively uncommon in Italy, Nexive decided to set an example and have lowered their CO2 emissions by 40% to 60%, since their switch to renewable energy in 2015.

As energy providers in Italy are required to offer a percentage of their energy as certified green, the amount of renewable energy produced in Italy is still not enough to fulfil Nexive’s requirements. To solve this, Italian energy providers buy white certificates, which certify that a certain reduction of energy consumption has been attained. Nexive continues to look for sustainable solutions both internally and externally, to boost their green credentials in the Italian market.

Source: PostNL

ROYAL MAIL JOINS THE UK’S LOGISTICS CARBON REDUCTION SCHEMERoyal Mail has joined the UK’s Logistics Carbon Reduction Scheme (LCRS) to further demonstrate its commitment to reducing carbon from road freight. The scheme demonstrates the efforts of industry to cut carbon emissions and contribute to national carbon reduction targets. Royal Mail has the biggest fleet in the UK with over 49,000 vehicles.

The Universal Postal Service Provider has taken steps to manage its carbon footprint, including making all new Royal Mail Heavy Goods Vehicles meet aerodynamic specifications that can reduce fuel consumption by up to 5%. The postal operator recently invested in 300 Cartwright Cheetah Fastback Trailers and has engaged with manufacturers to select a lighter weight trailer design.

The LCRS scheme is managed by the Freight Transport Association, a free voluntary initiative to record, report and reduce carbon emissions from freight transport. It has more than 100 members, accounting for 77,000 commercial vehicles.

Source: Royal Mail

RECYCLING CLOTHES AT SWISS POSTAfter the collection of 60,000 items of clothing, Swiss Post employees have turned their “A second lease of life for Swiss Post clothes” campaign into a great success in just a few months.

Swiss Post has collaborated with the Swiss Red Cross to recycle used work clothes. The clothes are sorted according to their condition with the Swiss Post label removed, to protect trademarks. Items in mint condition are sold by the Red Cross at its second-hand warehouses. Very good quality clothes with small defects go to organisations including Swiss Mountain Aid, and are donated to the families of mountain farmers. Badly worn or defective clothing is transformed into industrial materials such as cleaning cloths or insulation. All proceeds from the sales go towards social projects in Switzerland. The campaign will be repeated in 2016.

Source: Swiss Post

© 2016 - IPC.be THE NATURAL PARTNER FOR THE POSTAL INDUSTRY MARKET FLASH – GREEN SPECIAL | ISSUE 528 | EUROPE | PAGE 17

> EUROPECTT’S ECOPORTFOLIO - GIVING THE MARKET WHAT IT WANTSSince its launch, in 2010, Portuguese operator CTT’s Ecoportfolio has performed above expectations. With record high results in 2015, the Ecoportfolio’s total sales have now reached €57m. One of CTT’s programmes, Correio Verde has had a 235% increase of traffic, and another of CTT’s initatives, “Direct Marketing Eco”, now represents 25% of the company’s total Direct Marketing revenue.

CTT’s Correio Verde (green mail) programme uses recycled materials, eco-friendly inks, which then leads the whole product range to be carbon neutral at no additional cost for the customer.

Source: CTT

PORTUGUESE CTT EXPANDS EV FLEETOn March 8, Portuguese postal operator, Correos de Portugal (CTT), presented 41 new electric vehicles that will join its last mile fleet. CTT currently operates the largest national electric fleet, with 319 vehicles. The new vehicles will be allocated to urban postal deliveries in several Portuguese cities.

The acquisition will reduce CTT’s CO2 emissions by over 50 tonnes, reducing the company’s annual consumption by 22,700 litres of fossil fuels. In 2015, 45% of CTT’s light commercial fleet was renovated, with 604 new vehicles.

Source: CTT

© 2016 - IPC.be THE NATURAL PARTNER FOR THE POSTAL INDUSTRY MARKET FLASH | ISSUE 528 | ABOUT IPC | PAGE 18

ABOUT THIS PUBLICATION ABOUT IPCInternational Post Corporation (IPC) is the leading service provider of the global postal industry that provides leadership by driving service quality, interoperability and business-critical intelligence to support posts in defending existing business and expanding into new growth areas. It is a cooperative association of 24 member postal operators in Asia Pacific, Europe and North America. IPC’s solutions and services are used by over 180 posts worldwide. Since 1989 IPC has set standards for upgrading quality and service performance and developed technological solutions that help members enhance service for international letters, packets and parcels. IPC engages in industry research, creates business-critical intelligence, provides a range of platforms and programmes for member post CEOs and senior management to exchange best practices and discuss strategy. IPC also manages the system for incentive-based payments between postal operators.

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IPC MARKET FLASH is a fortnightly newsletter providing a comprehensive look at new developments emerging in the international postal marketplace. It is published by the Marketing department of International Post Corporation.

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