The U.S. Postal Service plans to eliminate Saturday mail. This is part of a cost cutting program being spawned by the Service.

USPS lost $3.8 billion in 2009. One reason for the sharp increase was a drop off in mail volume of 12.7%. Factors such as online mail payments and message delivery have cut deeply into the Service's volume. And the trend is likely to continue.

Continue reading Goodbye Saturday Mail?

Goodbye Saturday Mail? originally appeared on BloggingStocks on Tue, 02 Mar 2010 16:40:00 EST. Please see our terms for use of feeds.

Continue reading Higher U.S. postal rates would curb 'catalogue mania'

Higher U.S. postal rates would curb 'catalogue mania' originally appeared on BloggingStocks on Mon, 12 Oct 2009 16:15:00 EST. Please see our terms for use of feeds.

Continue reading FedEx & UPS challenged by USPS flat rates

FedEx & UPS challenged by USPS flat rates originally appeared on BloggingStocks on Mon, 31 Aug 2009 18:00:00 EST. Please see our terms for use of feeds.

FedEx (NYSE: FDX) is going to raise the rates on many of its services in January of next year. UPS (NYSE: UPS) is planning the same thing. The price increase from FedEx will be close to 7% .

According to The Wall Street Journal, "The increases come as shipping companies benefit from slumping fuel costs but are hampered by falling demand."

The move is a very big risk. During a recession, businesses and consumers will find almost any way they can to cut corners. FedEx still has formidable competition from the United State Post Office, which offers its own ground and overnight products.

FedEx is faced with the "damned if you do, damned if you don't" puzzle that most companies in an economic downturn are scrambling to solve. It needs to keep its revenue as high a level as possible. At the same time, it risks losing customers by making clients pay more than they ca afford.

The U.S. Postal System has lost much of its relevance as people move away from sending letters and documents through the mail in favor of electronic transfers and communications. FedEx might just help the USPS pick up some customers, if the old government-supported agency keeps its rates down.

Douglas A. McIntyre is an editor at 24/7 Wall St.

Can companies raise prices in a recession? UPS and FedEx will originally appeared on BloggingStocks on Mon, 17 Nov 2008 10:40:00 EST. Please see our terms for use of feeds.

This post is part of our Battle of the Brands feature. Let us know which brand you prefer, and check out other Battle of the Brands posts.

When you need to ship a package, which company first comes to mind? According to last year's Battle of the Brands non-scientific poll, an overwhelming majority said they favored United Parcel Service Inc. (NYSE: UPS) over FedEx Corp. (NYSE: FDX). Higher fuel surcharges, a weak economy, reduced domestic package volume, and a recent push from the U.S. Postal Service have impacted both of these international shipping companies in the past year, but Americans still want the same quality service at a discount price.

Let's take a look at a few changes since last year:

The US Postal Service Tries To Gain Ground

The largest player in the U.S. overnight package delivery business is attempting to increase its market share in the fast-delivery business next month. USPS is barely holding on to its 32% market share in the business, as FedEx and UPS continue to push the envelope at 31% and 25% market share, respectively. For the first time, shippers using Express Mail, Priority Mail, and several other parcel services will be able to get lower rates for large- and medium-volume contracts, according to the agency. Will UPS and FedEx need to cut their prices further to compete with the USPS?

Continue reading Battle of the Brands: UPS vs. FedEx

Battle of the Brands: UPS vs. FedEx originally appeared on BloggingStocks on Mon, 05 May 2008 17:00:00 EST. Please see our terms for use of feeds.

In a record-setting one-day stamp auction that raised sales of $9.1 million, billionaire bond fund manager Bill Gross unloaded a series of early British stamps featuring a young Queen Victoria. The proceeds raised were donated as one sum to Doctors Without Borders; it was the medical organization's largest donation ever received in its 36-year history.

The top lot auctioned Monday morning included two items. The first was described as "the largest surviving mint Penny Black multiple still in private hands," consisting of 18 stamps, coupled with a strip of six stamps that were separated from the larger bunch. The two pieces together were ultimately sold for $1 million to an unnamed bidder. Attending the auction were bidders from the U.S., Canada, the U.K., France, Switzerland, Belgium, China, and Italy.

Gross said he began collecting the stamps in question around 2000, spending an estimated $2.5 million on them. While today's auction benefited a charitable cause, it also helped Gross gauge the market for collectible stamps. Mr. Gross is one of the largest U.S. collectors and estimates having spent between $50 million and $100 million on his collection (that's kind of a wide range, but who am I to quibble?).

Continue reading What have you done for me philately?: Stamp auction raises $9.1 million

What have you done for me philately?: Stamp auction raises $9.1 million originally appeared on BloggingStocks on Tue, 12 Jun 2007 16:05:00 EST. Please see our terms for use of feeds.

Forever Stamp: Is it worth buying now? originally appeared on BloggingStocks on Tue, 15 May 2007 20:22:00 EST. Please see our terms for use of feeds.

Continue reading USPS introduces 'Forever' stamp

USPS introduces 'Forever' stamp originally appeared on BloggingStocks on Mon, 26 Mar 2007 14:27:00 EST. Please see our terms for use of feeds.

The U.S. Postal Service is looking to increase the cost of a first-class stamp by two pennies, to 41 cents. According to BusinessWeek, it would also like sell a Forever stamp, one that will be good for first-class postage in perpetuity, regardless of price increases.

Being a cheapskate, I wondered how investing in Forever stamps would stack up against the stock market. The USPS proposes selling it at the same price as the new first class stamp.

First, I went to the Inflation Calculator to see how the postage stamp has tracked against the value of our money. I did some digging, and found that the first stamp, issued on March 3, 1863, sold for 03 cents. It reached a dime in 1974, 20 cents in 1981, and 30 cents (actually, 32 cents) in 1995. Happily, I found that the original 03 cent stamp should cost 58 cents today, so we're getting a bargain. Even 1985's 22 cent stamp should cost 41 cents today.

Next, I looked at how the value of a Forever stamp would have fared if I had been able to buy one in 1997. At that time, the stamp would have cost 32 cents. If I held it until the 41cent rate takes effect, I could realize a measly 28% profit (before taxes) over the ten-year span.

My conclusion? Stamps may be a better place for my money than penny stocks or the lottery, but they can't lick the good old stock market.

Hold forever? Stocks vs Forever stamps as an investment originally appeared on BloggingStocks on Wed, 07 Mar 2007 15:45:00 EST. Please see our terms for use of feeds.