Quarterly Market Updates

Post by **TrueBlueTerrier** » 05 Dec 2008, 12:53

http://www.psc.gov.uk/competition/quart ... dates.html

Quarterly Market Updates

In response to requests from stakeholders for more regular information about the market and developments, Postcomm has created quarterly market update factsheets which cover key areas such as:

* Royal Mail volumes;
* Access Mail volumes;
* Alternative operator licensed and non licensed area volumes;
* News about different mail applications;
* Updates from licensed operators;
* UK Market developments; and an
* International update

To download the quarterly market update, please click on the link below:
Financial year 2008/09

* Quarter 1 2008/09 (pdf, 90KB) http://www.psc.gov.uk/postcomm/live/com ... e_v0_3.pdf
* Quarter 2 2008/09 (pdf, 92KB) http://www.psc.gov.uk/postcomm/live/com ... e_v0_2.pdf

The next update will be available in February 2009.

If you have any comments, feedback or news items for the quarterly market update please email market.intelligence@psc.gov.uk

Big Daz · Post by **Big Daz** » 06 Dec 2008, 19:40

Overall mail volumes are down 3% year to date and its just the 2nd quarter that was down 4 % the next two quarters may well see mail volumes overall not decreasing or even increasing.

RML need to be carefull not to mislead us unless of course thats the plan

F0zziebear · Post by **F0zziebear** » 08 Dec 2008, 11:04

RM would need to see volumes increase by 1-2% during Q3/Q4 for volumes not to be changing.

Main thing is that Access volumes have risen 9% year on year, which means a far chunk fo revenue has gone. I know that RM only wanted 20% to go via Access so this is going to be a big blow to the RM business model.

2009 will be critical. What will be interesting is the impact of the recession on Access volumes as these are large direct mail (M1/M2/M3) type postings. Possibly 1 or more may merge or restrict their international operations. Watch this space. interesting that DHL is not mentioned in the Q2 publication. Maybe they have already retreated?

Night Tonic · Post by **Night Tonic** » 08 Dec 2008, 16:04

Volume going down. Gosh. Still there will be those that think their pouch has the true answer and that RM's business should be based on that.

Yahoorsur · Post by **Yahoorsur** » 08 Dec 2008, 16:42

'In Q2 2008/09 Royal Mail handled
4.3bn items. This is a 4% decrease
compared to Q2 2007/08.'

'So far this financial year alternative operators have handled 11.7m items end to
end. This is a 13% decrease compared to this period during 2007/08.'

So its not just Royal mail volumes that's going down then,looks like the other operators are suffering even more than us

Night Tonic · Post by **Night Tonic** » 08 Dec 2008, 23:51

Probably not if its 13% across all of them but for sure the trend is down not up

BELIAL · Post by **BELIAL** » 09 Dec 2008, 00:06

Manufacturing down 26% :retailing down 24% ;invisible earnings down 79%: Might as well shut up shop,the trend is clear for all to see. Let's cease trading tomorrow ,jump the gun and save a packet.You know it makes sense

F0zziebear · Post by **F0zziebear** » 09 Dec 2008, 13:07

I do not mean to patronise you but the 13% reduction refers to alternative operators who offer an E2E service. 11.7M items in a quarter when RM delivers 80M a day is a tiny amount, less than 1% of total volume.

What you need to pay attention to is the Access volumes, which went up 9%. This means that TNT/UK Mail/DHL etc. are collecting and sorting another 9% of mail compared to the same time the previous year. That means that a serious chunk of revenue that used to come to RM is not coming anymore. This means there is more pressure to cut costs in bulk collection, distribution and processing in RoyalMail.

The good news in theory is that volumes in deliveries has not been taken away and according to posties their volumes/weight is increasing.

The problem is that RM is expected to deliver the same volume of mail but with less overall money.

hope that makes some sense?

tomangoe · Post by **tomangoe** » 09 Dec 2008, 19:41

Don't you think its time Royal Mail tightened up on the Downstream Access Cowboys? They may be collecting more DSA mail but they certainly aren't sorting it ! The majority of mail we have to sort in the mornings is DSA,letters and flats,much of it not even pre-sorted let alone for individual walks.I thought the mail was supposed to come to us with some degree of pre-sorting done? Even when we get supposed "walk sorted " bundles,they are sorted to the walks pre-Pegasus so we have to split them and sort by hand.No wonder costs are through the roof!

BELIAL · Post by **BELIAL** » 14 Dec 2008, 00:28

What fun if the if the public service refused to operate dsa mail. "You chose your supplier,they can't deliver

We might reconsider in future ,but sorry as for now our

slots are chocca

Night Tonic · Post by **Night Tonic** » 14 Dec 2008, 00:53

lol. Yup thats the weakness in the entire postal liberalisation idea.

andy2007 · Post by **andy2007** » 14 Dec 2008, 05:34

F0zziebear wrote:I do not mean to patronise you but the 13% reduction refers to alternative operators who offer an E2E service. 11.7M items in a quarter when RM delivers 80M a day is a tiny amount, less than 1% of total volume.

What you need to pay attention to is the Access volumes, which went up 9%. This means that TNT/UK Mail/DHL etc. are collecting and sorting another 9% of mail compared to the same time the previous year. That means that a serious chunk of revenue that used to come to RM is not coming anymore. This means there is more pressure to cut costs in bulk collection, distribution and processing in RoyalMail.

The good news in theory is that volumes in deliveries has not been taken away and according to posties their volumes/weight is increasing.

The problem is that RM is expected to deliver the same volume of mail but with less overall money.

hope that makes some sense?

I thought we were still the only ones to provide an E2E Service. I know there was talk recently, of a pilot scheme from one of the larger Competitors (can't remember which one). But I've not heard anything about a National E2E service from the Competition. Or even about the Pilot scheme, for that matter. Does anyone know if it has failed yet, or not?