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2018 | Buch

The Contribution of the Postal and Delivery Sector

Between E-Commerce and E-Substitution

herausgegeben von: Prof. Pier Luigi Parcu, Dr. Timothy Brennan, Prof. Victor Glass

Verlag: Springer International Publishing

Buchreihe : Topics in Regulatory Economics and Policy

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Über dieses Buch

This book addresses major issues facing postal and delivery services throughout the world. Worldwide, there is currently a considerable amount of interest in postal and delivery economics. The industry is in a state of near crisis and drastic change is needed. The European Commission and member States are still wrestling with the problem of how to implement entry liberalization into postal markets, how to address digital competition, and how to maintain the universal service obligation (USO). The Postal Accountability and Enhancement Act of 2006 in the U.S. has perhaps created and exacerbated the problems faced by USPS. Post Offices (POs) have been slow to address the threat of electronic competition. On the other hand, e-commerce presents opportunities for POs to expand their presence in parcel delivery and perhaps help finance or redefine the USO. A major aim of this book is to address strategies POs can use to reinvent themselves for the digital age.This book compiles original essays by prominent researchers in the field, which will be selected and edited from papers presented at the 25th Conference on Postal and Delivery Economics held in Barcelona, Spain, May 24-27, 2017. That conference, and this volume, commemorates the memory of Michael Crew who organized twenty-four prior conferences and co-edited previous conference volumes. This book is a useful tool not only for graduate students and professors, but also for postal administrations, consulting firms, and Federal Government departments.

Inhaltsverzeichnis

Frontmatter
Academic Hubs and the Intellectual Infrastructure of Economic Regulation
Abstract
Michael Crew was one of the most important academics in the past half-century of economic regulation. He wrote books and articles that shaped the way we think about the substance, process, and institutions of regulation. In the classroom, he provided powerful analytical tools and valuable practical guidance to thousands upon thousands of students. He was a much-demanded lecturer to audiences of around the globe. He gave astute advice to public bodies and private firms as a consultant. He generously provided invaluable support and guidance to junior academics. In all of these endeavors, he displayed true mastery of the technical details and broad policy considerations of regulation, and he revealed an unsurpassed capacity to identify important connections across the individual domains of regulatory policy.
William E. Kovacic
On Some Historical Contributions of the Postal and Delivery Conference
Abstract
This paper explores market and regulatory themes developed and debated at CRRI (now EUI-CRRI) Conferences on Postal and Delivery Economics. These include efficiency of postal operators, universal service and financing, third-party access to postal networks, and full market opening (FMO). Thematic development has relied on the cross-fertilizing mixture of participants that includes academics, national postal providers, mail competitors, express courier services, regulators, law scholars, consultants, technology experts and unions.
Pier Luigi Parcu, Vincenzo Visco Comandini
Michael Crew’s (and Paul Kleindorfer’s) Scholarly Contributions to the CRRI Postal Conferences, 1990–2012
Abstract
Michael Crew held the first Rutgers University Center for Research in Regulated Industries (CRRI) Conference on Postal and Delivery Economics on July 22, 1990 in Rugby, England. Since that first conference, he organized 23 more, the last of them with Pier Luigi Parcu and the Florence School of Regulation (FSR). This 25th was the first organized in his absence.
Timothy J. Brennan
DHL Express (Austria): Towards Legal Certainty on Article 9 and Applicable Obligations for Postal Service Providers
Abstract
This paper looks at the complex and disputed provision of the Postal Services Directive dealing with authorizations in the postal sector (Article 9) and obligations that may be imposed on postal service providers against the recent and pending judgments of the Court of Justice, which are progressively clarifying its wording, context and objectives. In particular, it will assess the implications of the most recent DHL Express (Austria) judgment for the other two cases that are pending in this field.
Alessandra Fratini
Quantity Rebate Scheme: Applicability of “per sender” Reasoning for Corporate Groups
Abstract
Article 12 of the Postal Services Directive (hereinafter “PSD”) stipulates that (special) tariffs for each of the services forming part of the universal service (hereinafter “US”) shall be, inter alia, non-discriminatory, while Article 102 of the Treaty on the Functioning of the European Union (hereinafter “TFEU”) prohibits the abuse of a dominant position. Building on this legal context, the aim of this chapter is to answer the following hypothetical question: Is a universal service provider (hereinafter “USP”) with a dominant position entitled to introduce, for services forming part of the US, a quantity rebate scheme that considers a group of companies as a single sender, where the quantity rebate is based on the total quantity of the group, and not as a group of separate senders?
Til Rozman
Regulation. Quo Vadis?
Abstract
2017 marks the 20th anniversary of the adoption of the first European Postal Directive. What has been achieved? Is Regulation still needed? The Postal Directive had two objectives. The first objective was to ensure the gradual and controlled liberalization of the European postal services market. The second objective was to address concerns that in a fully liberalized market the services offered on an economic basis would not meet the needs of users or guarantee them fair and non-discriminatory treatment.
John Hearn
PAEA’s Take on Regulatory Economics
Abstract
The primary purpose of the Postal Accountability and Enhancement Act (PAEA 2006) was to stabilize the finances of the United States Postal Service (USPS) by creating a “modern” regulatory system to replace the system established by the Postal Reform Act of 1970 (the 1970 Act). Secondary purposes were to deregulate postal markets wherever USPS confronted direct competition, level the playing field by reducing USPS’s governmental advantages, and limit USPS’s participation in markets for non-postal products. Congress also expected PAEA to “maximize incentives to reduce costs and improve efficiency”.
Edward S. Pearsall
Are European Cross-Border Parcel Delivery Services Affordable?
Abstract
The European Commission (EC) believes tariffs for parcel delivery services paid by low-volume senders (small and medium enterprises (SMEs) and individuals) are “too high” and are impeding e-commerce market development between EU Member States. In May, 2016, the EC released a proposal aimed at solving this problem. They notably proposed that national regulatory authorities assess the affordability of parcel delivery tariffs offered by national postal operators (NPOs) within their jurisdictions (article 5).The objective of this paper is to analyze the extent to which parcel delivery price affordability stimulates online exchanges between EU Member States. The novelty of this analysis is to view parcel delivery within a broader supply chain. After reviewing the economic literature on the meaning of affordability, this concept will be applied to parcel delivery services. Afterwards, the European Commission’s approach to affordability will be examined.
Claire Borsenberger
The 2016 European Commission Proposal for a Regulation on Cross-Border Parcels: An Assessment of the Objectives, Background, Issues and Potential Impacts
Abstract
On 25 May 2016, the European Commission published its proposals for a regulation on intra-EU cross-border parcels which would, if approved, be directly applicable in all EU Member States. The proposals were based on an analysis of the issues facing consumers and e-retailers buying and distributing goods across EU Member State borders. They took account of the Commission’s 2013 Green Paper, a subsequent roadmap and public consultation and various Commission studies.
Philip Groves
E-commerce of Goods: Testing the European Single Market
Abstract
E-commerce has become a major marketplace that provides businesses and consumers new trade opportunities beyond their traditional geographic markets. In light of the European Digital Single Market (DSM), a relevant concern is the existence of several forms of geographic discrimination. Consumers as well as businesses are often faced with undue impediments to free and efficient cross-border transactions within the European Union (EU).
Paula Gori, Virginia Silvestri
How E-commerce Is Shaping a New Consumer-Focused Regulatory Framework for the European Parcel Delivery Market
Abstract
Changing communication behavior has led postal operators to take advantage of new parcel delivery opportunities stemming from the growing e-commerce market. Until fairly recently, the parcel delivery sector was essentially a Business to Business (B2B) market, unregulated and left largely to pure parcel operators like UPS or Fedex. By contrast, the new e-commerce delivery market is mainly Business to Consumers (B2C) and as a result attracts regulatory attention, in particular the consumer protection rules applying throughout the European Union (EU).
Virginie Alloo
Life After Volume Declines: Is There a Viable Future for the Postal Sector?
Abstract
The current postal sector landscape is an excellent laboratory for examining the effects of a profound market disruption. A critical question is whether the postal services market has reached a tipping point, is it nearing an equilibrium, or is the ride just starting to get bumpy? Evidence clearly suggests the latter.
Adam C. Houck
Analysis of the Effect of Management Quality Variables in Delivery Cost Functions
Abstract
Letter volumes in countries with advanced broadband networks have been in decline since the early to mid-2000s while, more recently, parcel volumes have started to grow quite rapidly. The main drivers of these trends, namely the substitution of physical letters with electronic modes of communication and increasing levels of on-line shopping, are expected to continue for some time. This raises two important challenges for postal universal service providers (USPs). The first is to manage operational changes to meet the evolving needs of consumers, such as changes in the quantity, shape, size and weight of mail sent and received. Second, USPs need to reduce costs and increase efficiency as quickly as is practically possible in order to help slow the decline in letters and to compete more effectively with other parcel providers.
Catherine Cazals, Thierry Magnac, Soterios Soteri
Postal Users’ Needs Regarding Accessibility to the Postal Network
Abstract
Under the Postal Services Directive (henceforth, Directive), and in the framework of the universal service obligation (USO), European Union’s (EU) Member States (MS) shall ensure that users enjoy the right to a postal service of a specified quality at all points in their territory at affordable prices for all users. To this end, EU MS shall take steps to ensure that the density of the points of contact and of the access points takes into account users’ needs. In our view, the Directive gives substantial discretion to EU MS and to National Regulatory Authorities on identifying users’ needs and defining the allocation of costs involved. In this paper we discuss an approach under discussion at ANACOM, the Portuguese NRA.
João Confraria, Filipa Silva, Frederico Pereira, Agostinho Franco
Kill Your Darlings: When Does Sacrificing Next-Day Delivery Help USO Sustainability?
Abstract
The financial pressure on universal service providers (USPs) arising from declining letter mail volumes and changing user needs increasingly burdens national universal service obligations (USOs). These dynamics have been recently reviewed by Cape and Groves (2017), who provided an overview of different changes to national USOs, their implications and possible future trends.
Henrik Ballebye Okholm, Mindaugas Cerpickis, Anna Möller Boivie, Bruno Basalisco
The Pricing of Cross-Border Parcel Delivery Services
Abstract
The role of parcel delivery services in cross-border e-commerce is a hotly debated topic within the EU and beyond. While volumes of domestic e-commerce have increased dramatically over the last years in all member States, cross-border purchases remain lower, even though the latest figures released by E-commerce Europe (2016) showed an acceleration of cross-border transactions. This can be explained by a variety of factors including language and cultural barriers and bureaucratic obstacles (in particular the complexity of VAT regimes—see E-commerce Europe last cross-border barometer) but also simply by the fact that goods are available on the domestic market without any significant price differential. The EU Commission has recently launched a proposal that focuses on parcel delivery services and particularly their pricing as an alleged major impediment for the development of cross-border e-commerce (European Commission 2016).
Claire Borsenberger, Lisa Chever, Helmuth Cremer, Denis Joram, Jean-Marie Lozachmeur
Pricing and Efficiency Decisions for Letter and Parcel Markets When Industrial Relations Matter
Abstract
A key feature of postal markets today is the changing mix of physical mail. While the demand for letters is in decline, predominantly because of e-substitution, parcel volumes are increasing due to the rapid growth of e-commerce. Universal service providers (USPs) in the postal sector serve both markets. In the former, universal service obligations (USOs) are in place and regulators and private shareholders, where the USP is privatized, press for improvements in efficiency. In the latter, markets are highly competitive with parcel companies offering differentiated services. In both markets, USPs are under pressure to lower costs and prices to maintain financial viability. But postal operations are labor intensive and the pressure to lower costs poses a threat of industrial action.
Philippe De Donder, Frank Rodriguez, Soterios Soteri
The Impact of Competition on Consumer Prices for Cross-Border Parcels
Abstract
In the past, prices for cross-border parcels have been perceived of being too high by some observers. Economists would generally expect that growing volumes, increasing economies of scale, and increased competition lead to lower prices. This paper analyses whether the expected impact can already be observed: It analyses prices for consumer parcels and, where available, average revenues per unit. The paper covers Austria, Belgium, Czech Republic, Germany, Ireland, the Netherlands, Portugal, Spain, Sweden, and the United Kingdom. We ultimately conclude that there are weak indications that competition and economies of scale are putting downward pressure on prices for cross-border parcels, and are thus driving prices to the politically desired direction.
Sonja Thiele, Alex Kalevi Dieke
Adjusting Rates for Quality of Service: Have Market-Dominant Mail Rates Risen Faster than the CPI-U?
Abstract
The Postal Accountability and Enhancement Act of 2006 (PAEA) established a cap on the annual rate of increase in price of each class of domestic mail for which the U.S. Postal Service (USPS) is the market-dominant supplier. The allowable annual increase is the rate of increase in the Urban Consumer Price Index (CPI-U). The U.S. Postal Regulatory Commission (PRC) is charged by PAEA with verifying that USPS’s rates for market-dominant mail comply with this cap.
Edward S. Pearsall
Simulating Cost Effective Parcel Delivery Methods for Postal Services
Abstract
Over the last decade, postal services have experienced simultaneous declines in their letter and flat volumes and increases in their parcel volumes. For example, from 2006 to 2015, the United States Postal Service’s (USPS’s), combined letter and flat volumes fell by nearly 30%, while package service volumes increased by nearly 80%. This change in mail mix has caused postal services to reconsider the configurations of their delivery networks. This paper examines the variables a portal service must consider in deciding whether to concentrate parcel delivery on dedicated routes on to deliver parcels jointly with letters.
Michael D. Bradley, Jeff Colvin, Mary K. Perkins
Price Elasticities and Factors Driving International Contract Export Mail Sent from the UK to Western European Countries
Abstract
In the economics literature traditional export demand functions in gravity models are a function of the exchange rate, economic activity and distance between countries. Models of this type provide a useful framework to examine international mail traffic. For example, Anson and Helble (2013) and Anson et al. (2014) have estimated international gravity models using econometric techniques and the latter have concluded that favorable exchange rate movements stimulated parcel dispatches within the Asia and Pacific region.
Frederique Feve, Thierry Magnac, Soterios Soteri, Leticia Veruete-McKay
An Exploration of the Impact of Parcel Volume Growth on the Service Performance of Letter Mail
Abstract
Online shopping has increased globally, leading to an explosion in parcel volumes for both postal operators and commercial delivery companies. This increase in package volume is a positive development for postal operators who have been facing long-term volume and revenue declines in letter mail. USPS’ competitive products revenue, which is composed mostly of package volume, increased more than $2 billion in FY 2016, a 12.6% increase over 2015. The present paper offers some theoretical perspectives and some quantitative evidence on the effect of parcel trends on service performance for letters.
Margaret Cigno, Soiliou D. Namoro
Metadaten
Titel
The Contribution of the Postal and Delivery Sector
herausgegeben von
Prof. Pier Luigi Parcu
Dr. Timothy Brennan
Prof. Victor Glass
Copyright-Jahr
2018
Electronic ISBN
978-3-319-70672-6
Print ISBN
978-3-319-70671-9
DOI
https://doi.org/10.1007/978-3-319-70672-6