Package Coalition Thanks

Package Coalition Newsletter

January 21, 2022

The Package Coalition works to preserve an affordable, reliable and profitable postal package delivery system as an essential part of America’s infrastructure and economic growth.   “Rural communities depend so much on entrepreneurship. When there aren’t jobs, you create those jobs and you need the Postal Service to be there, to be consistent, to be reliable.” Marketplace profiled how rural communities and local jobs depend on the U.S. Postal Service’s package delivery. “The Postal Service Act of 1792 rapidly expanded what was then a chain of offices along the Atlantic seaboard into a network that would reach far into trans-Appalachian hinterland. It was an extraordinary commitment,” said historian Richard John.    The Postal Service’s universal obligation guarantees mail and package delivery for every address in the nation. Meanwhile, other private carriers levy surcharges on more than 50% of zip codes, and don’t deliver to many rural and remote addresses at all. Navajo jewelry maker and entrepreneur JJ Otero explained how the Postal Service keeps him in his business — and how threats to the postal package system could impact him. “I mean, it’s tough enough,” Otero said. “They’re overlooking the fact that poor people need to get mail and to get mail out. Among those poor people are the Indigenous folks that live in areas like here, that rely on [the Postal Service].”    Getting up to speed on postal reform legislation? For a one-stop resource on all things postal reform, we’ve compiled top resources for you. It’s time for Congress to pass the Postal Service Reform Act, which will boost the postal system’s capabilities to serve as an economic lifeline for small businesses and Americans nationwide. The legislation will codify the Postal Service’s integrated delivery network: mail and packages delivered together, six days a week. Below are resources on this important legislation.   Package Delivery Primer in the United States   The basis for package delivery: Affordable mail and package delivery service, in rural areas, suburbs and cities, is critical to businesses and consumers in the US The package delivery market, which consists of private carriers and the US Postal Service (USPS), is a network; the USPS is often the main (sometimes sole) package carrier for rural counties given its universal service obligation for mail Summary of the approach: Congress rightly established fair competition laws for the package delivery market because of the USPS’s participation in the market Implementation of fair competition has been led by the post’s regulator, the Postal Regulatory Commission (PRC), and the Federal Trade Commission (FTC) The current statutes and regulations on package pricing help protect fair competition Respecting competitive restrictions, the USPS should exercise pricing flexibility to serve changing consumer demands, ensure innovation, support mail and stabilize its finances Congress has ensured fair competition in the package delivery market: Each competitive product offered by the USPS must cover its costs Collectively, USPS’s competitive products must cover an “appropriate share” of institutional, or overhead, costs of the USPS These mandates preclude the USPS from subsidizing its package products with revenue from mail The USPS must also comply with standard antitrust laws, meaning it cannot price in a “predatory” way (no one has ever alleged that USPS has done so) The Postal Regulatory Commission (PRC) plays an important role in regulating the USPS:   1. The USPS does not subsidize package products with revenues from mail. The USPS’s revenues from packages outpace the cost of providing those products. In 2021, competitive package products revenues were $34.2 B compared to total competitive package product costs of $21 B. Package products provide an additional $13.2 B to USPS institutional costs, supporting mail delivery.    USPS data showing competitive product contribution (in billions) to USPS institutional costs.   2. The PRC reviews and validates the pricing of each USPS competitive product to ensure it covers its costs. This includes both public pricing and negotiated agreements. The PRC uses a methodology endorsed by the U.S. Supreme Court and followed in other regulated industries. The chart shows that how USPS package product revenues have covered their costs:   USPS data showing cumulative competitive price coverage (revenue as a percentage of cost). A rate higher than 100% means the products more than cover their costs.   3. The PRC also ensures that USPS’s competitive products cover an appropriate share of institutional costs (overhead) of the USPS through regular reviews created by the Postal Accountability and Enhancement Act (PAEA). In 2007 and 2012, the PRC established 5.5% as the minimum contribution requirement for competitive products. In Docket RM2017-3 reviewing the minimum contribution, the PRC approved a formula that adjusts annually and substantially increases the minimum contribution requirement from 5.5% to 9.1% in 2021. In recent years, USPS’s package products have been covering an increasing percentage of the USPS’s institutional costs:   USPS data showing competitive products’ share of institutional costs (from 5.7% in 2007 to 39.2% in 2021).   4. Finally, the PRC must make an annual finding that the USPS is complying with statutory requirements for fair competition in the package market.   Implementation of fair competition has been fostered in other ways:   The USPS is subject to general antitrust laws administered by the Federal Trade Commission and the Department of Justice: No violations have been alleged No evidence the USPS has a dominant market share, nor abused the market Congress asked and the Federal Trade Commission examined whether the USPS had an unfair competitive advantage in the package delivery market. The FTC found (2008) that the USPS has a net economic disadvantage of up to $1B annually The PRC recently reexamined the FTC’s findings (2017), updated the estimate and still finds a similar if not larger disadvantage to the USPS compared to private carriers Within limitations established by statute of by rule, the USPS should exercise pricing flexibility to serve consumers’ changing demands, ensure innovation, support mail and stabilize finances:   The USPS has been raising rates on packages and is incentivized to do so. Growing USPS package revenues, while 42% of USPS revenues, help to stabilize USPS finances and protects its ability to meet its universal service obligation (letter mail delivery six days per week).   USPS data showing that general competitive product prices are rising at a rate much faster than the Consumer Price Index (CPI-U), consistent with private carrier rates. The Package Coalition is an alliance of America’s top retail, e-commerce and logistics companies committed to preserving reliable and affordable postal package delivery services. The Postal Service delivers packages directly to the doorstep of more than 161 million delivery addresses across the country, contributing trillions of dollars to the US economy and supporting millions of jobs and small and medium sized businesses. Keep up with the Package Coalition by following us on Twitter (@PkgCoalition) or visiting our website.

The Courier-Journal: USPS Critical in the Supply Chain Crunch & Holiday Season

The Package Coalition in The Courier Journal:  USPS is Critical in the Supply Chain Crunch & Holiday Season   Louisville’s Courier-Journal published an op-ed from former Secretary John McHugh, Chairman of the Package Coalition, about the critical role the U.S. Postal Service plays during the holiday season and how the Post Reform Act can bolster its effectiveness going forward. Despite unprecedented demand for packages, supply shortages and rising inflationary pressures, the USPS is fully prepared to provide reliable and affordable delivery services to Americans in every zip code this Holiday season.   “The Postal Service, during this rocky time for consumers and business, will further cement its role as the only carrier with a mandate, and the ability, to deliver to homes and businesses in every US zip code. Private carriers, on the other hand, have made it a regular practice to raise rates, levy heavy surcharges for deliveries in many rural zip codes, and have even denied some retailers and manufacturers access to their delivery services altogether. The Postal Service does not engage in these practices because it is a public service and has a mandate to do so.   “The bipartisan Postal Reform Act is needed to ensure USPS can continue to follow through on its core mission to deliver mail and packages — in rain, sleet or snow — six days a week. A critical provision in this bill would allow the Postal Service to continue to provide certainty to American consumers and businesses by codifying that mail and packages will continue to be delivered together, in an integrated delivery network, six days a week to every address in America. Unsurprisingly, this provision is opposed by private carriers, as the private carriers, such as UPS and Fed-Ex, are more interested in profit and market share than reliability.   “Congress should support the Postal Service by passing the Postal Reform Act, with language to codify its six-day integrated network, so that USPS can continue to support us, as American consumers and businesses, through future crises.                Serving more than 3 million small businesses nationwide, the Package Coalition is an alliance of America’s top retail, e-commerce and logistics companies committed to preserving reliable and affordable postal package delivery services. The U.S. Postal Service delivers packages directly to the doorstep of more than 161 million delivery addresses across the country, contributing trillions of dollars to the US economy and supporting millions of jobs and small and medium sized businesses.   Keep up with the Package Coalition by following us on Twitter (@PkgCoalition) or visiting our website.

What new tech regulation means for your business

New INFORM Consumers Act Bill Introduced

Ebay

After months of negotiations and significant grassroots engagement by eBay small businesses, we are pleased to share that US House Representative Jan Schakowsky (D-IL-9) and Representative Gus Bilirakis (R-FL-12) have introduced a new version of the INFORM Consumers Act which increases transparency, protects sellers and will provide one federal compliance standard. With these crucial substantive changes, eBay now supports the INFORM Consumer Act, and urges Congress to advance this legislation immediately.

For the last 18 months, big box retailers launched a coordinated effort throughout the states and at the federal level to make it more difficult for small businesses and entrepreneurs to sell goods through online marketplaces. The original version of the INFORM Consumers Act would have imposed burdensome and discriminatory collection of information requirements that would have harmed legitimate small businesses and entrepreneurs who sell on online marketplaces.

The revised INFORM Consumers Act no longer places onerous and burdensome requirements on individual and small business sellers. These significant modifications will improve the consumer buying process while protecting millions of American individuals and small businesses selling online. The revised language importantly provides federal preemption that will establish a federal standard while avoiding patchwork legislation in the states. In the context of the numerous anti-marketplace bills that exist at the state and federal levels, the new INFORM Consumers Act represents an agreed upon path forward to allow for a safe and transparent buying process, while also protecting individual and small business sellers.

Highlights of the updated INFORM Act: 

• Removal of burdensome requirements: Marketplaces would no longer be required to collect sellers’ drivers license and other unnecessary information as a means of “verifying” who each seller is and how to contact them.
  
  • eBay already has advanced trust and safety measures in place to verify the legitimacy of sellers on its platform.  
  • Timelines and requirements for seller verification have been extended so as to not burden sellers.  
• Protects privacy of sellers: Sellers will no longer be required to disclose (next to each product listing) the full name, address, phone number, and email address of their business.
  
  • eBay already provides a transparent online shopping process where a buyer knows who is selling each product, the seller’s reviews and other items listed, where an item listed for sale is located, and a means to contact the seller directly.
• Federal Standard: The new INFORM Consumers Act contains a federal preemption standard which would prevent a patchwork of confusing state laws.

Federal Status: While eBay supports the new INFORM Consumers Act, there is still a lot of work that needs to be done to prevent big box retailers and proponents of the original version of the bill from trying to make changes which would burden individual and small business sellers.

State Status: Legislation mirroring the federal INFORM Consumers Act has been introduced in 18 state legislatures in 2021. Nearly every state legislature that has taken up this type of legislation has rejected such proposals. One state – Arkansas – passed legislation due to aggressive lobbying by big box retailers.

eBay Commitment

eBay is committed to ensuring its platform is a trusted and safe marketplace for buyers and sellers. The new INFORM Consumers Act represents a good faith effort by Chairwoman Schakowsky and Ranking Member Bilirakis to enable a safe and transparent online buying process. As this bill moves through the legislative process, we will be sure to keep you up to date on any changes. If the bill is ever signed into law, we will work to help explain any changes which might impact eBay’s seller community. For more information related to eBay’s efforts to maintain a safe and trusted platform, please consult eBay’s 2020 Global Transparency Report. 

Postal Reform

by email dated Aug 05, 2021

Inside Sources: Postal Reform Will Support America’s Small Businesses

This week Inside Sources published an op-ed from former Secretary John McHugh, Chairman of the Package Coalition, highlighting how bipartisan postal reform introduced in the House and Senate will support America’s small businesses. 

“The Postal Service also lent a hand to small businesses and retailers that pivoted to e-commerce as a way to survive the lack of foot traffic. As a result, many small businesses now have robust online shopping businesses that rely on the Postal Service for delivery. More than 99 percent of American companies are small businesses, many of which have had the opportunity to go online because of the reliable and affordable support that the USPS provides. The Postal Service has been a critical component for our economy since the start of our republic, but the pandemic reminded Americans every day about its vital role in binding our country together…

“In a rare instance of bipartisanship, Democrats and Republicans in the House and Senate recently introduced the Postal Reform Act, legislation that would help put the Postal Service on the right financial footing while also ensuring that its core mission to deliver mail and packages continues. One important provision designed to create certainty for the American people and businesses and efficiencies for the Postal Service’s network ensures that mail and packages will continue to be delivered together six days a week to every address in America.”

Serving more than 3 million small businesses nationwide, the Package Coalition is an alliance of America’s top retail, e-commerce and logistics companies committed to preserving reliable and affordable postal package delivery services. The U.S. Postal Service delivers packages directly to the doorstep of more than 161 million delivery addresses across the country, contributing trillions of dollars to the US economy and supporting millions of jobs and small and medium-sized businesses. Keep up with the Package Coalition by following us on Twitter (@PkgCoalition) or visiting our website.

EU VAT Information For US Sellers

July 22, 2021

by eBay USA

On July 1, 2021, new rules went into effect for goods imported into the EU. These new rules affect US sellers sending goods to EU residents. If you are US-based, already a VAT-registered seller for the EU, and plan to continue selling into EU countries, you will need to do the following:

1. Provide VAT rates: when listing any item for sale in the EU, always provide the gross price and the VAT rate you used to calculate the gross price. Where eBay has to collect VAT on your sales to EU buyers, eBay will remove VAT based on the rate you provided and add VAT based on the delivery country of the goods. This ensures that we always display the correct VAT-inclusive price to EU buyers and that eBay doesn’t collect VAT on an already VAT-inclusive price, which would make your listing uncompetitive. If you did not apply VAT or are not VAT registered, you can leave this field empty. Where eBay has to collect VAT, we will add this on top of your listing price. 
   1. Click here to learn more about the eBay VAT calculation methodology.
   2. Click here to update VAT rates on your listings. 
2. Share IOSS number for imports: where eBay has collected VAT on your shipment to the EU (up to a consignment value of €150 euro), always electronically share the eBay-provided Import One-Stop Shop (IOSS) number with your carrier. Otherwise, your buyers may have to pay VAT again on delivery.

If you are not registered for EU VAT but would like to begin selling into the EU, you should do the following:

1. Get familiar with EU import VAT: if you are not registered for VAT, you do not need to add a VAT rate to your listings. Where eBay has to collect VAT, we will add VAT on top of your listing price for shipments into the EU with a consignment value up to €150.
2. ShareIOSSnumber for EU imports: where eBay has collected VAT on your shipment into the EU (up to a consignment value of €150), always electronically share the eBay-provided Import One-Stop Shop (IOSS) number with your carrier. Otherwise, your buyers may have to pay VAT again on delivery.

Here are a few additional but important notes:

• If you are VAT registered, it’s mandatory that you display your VAT identification number on the eBay site in connection with your listings. This can be done by updating your business seller information page, which is further explained in the eBay Seller Centre.
• VAT rates differ by country and are based on the type of goods sold. The following links are great VAT rate resources:
  • VAT Rates At The EU level 
  • EU Searchable Database Of VAT Rates
• Where goods are imported into the EU, import VAT and, in certain cases, customs duty will apply. The VAT rate due at import will be the same rate as would be applied if the goods were supplied within the country of import.

For even more information on EU VAT rules, check out these handy resources.

• eBay Information on Your VAT Obligations (UK)
• eBay Information on VAT Obligations (US)
• General information on VAT
• VAT rates applied in the EU
• VAT changes for eCommerce from July 2021
• Member States of the EU

ICYMI: Thank You Congress…

Ocean Network Express expands its refrigerated container fleet

10th May 2021 – Singapore

Ocean Network Express (ONE) continues to expand its current refrigerated container (reefer) fleet by adding another 27,500 new units (including 850 units equipped with advanced Controlled Atmosphere (CA) technology) to meet the growing demand for refrigerated cargo around the world. This new investment comes on the heels of 5000 units (all 40’HC) invested by ONE in early 2020, which demonstrates its strong commitment to meet the demand for containerized reefer trade.

Despite the challenges triggered by COVID-19, the global refrigerated container trade showed strong resilience in 2020 compared to dry cargo and ONE expects this growth to be maintained in 2021. ONE is currently working towards the application of the latest IoT technology into its fleet of reefer containers which provides real time visibility of critical information such as the temperature and humidity inside the container, thereby enhancing cargo care during the entire voyage.

Hiroki Tsujii, Managing Director, Marketing & Commercial in Ocean Network Express (ONE) commented “ONE now has one of the largest and youngest reefer fleet in the world, equipped with the most advanced technologies designed to handle perishable cargo demand. Since inception, ONE has been consistently investing in new reefer containers, which in turn has helped to position ourselves in a strategically important & growing business segment.” ONE’s Global Reefer Business

Ocean Network Express Pte. Ltd. 7 Straits View #16-01 Marina One East Tower Singapore 018936 Co. Reg. No. 201708450C Planning team based at ONE’s HQ in Singapore, develops ONE’s global reefer marketing and business strategy through the close monitoring of market demand and the close collaboration with ONE’s regional reefer teams located around the world. ONE’s Reefer technical team is available both on board and on shore providing round the clock assistance and monitoring of its customers’ precious reefer cargo throughout the voyage.

For more information on ONE’s refrigerated cargo offerings, visit our website: https://www.one-line.com/en/advanced-page/refrigerated-cargo

Package Coalition Newsletter

The Package Coalition works to preserve an affordable, reliable and profitable postal package delivery system as an essential part of America’s infrastructure and economic growth.

April 22, 2021

About the USPS Board of Governors

This morning the Senate Committee on Homeland Security & Governmental Affairs will hold a hearing on President Biden’s nominees to become Governors for the U.S. Postal Service. Ahead of the hearing, here’s what you need to know about the Board of Governors:

“The Package Coalition commends the Postal Service for embracing the importance of investing in the future to maintain a 6 to 7-day-a-week integrated delivery network for mail and packages. We look forward to continuing our work with policymakers and the Postal Service to preserve an affordable, reliable and profitable postal package delivery system.”

The Basics

• Up to 9 governors on the Board
• Appointed by the U.S. President, confirmed by the Senate
• The Board was established by 1970’s Postal Reorganization Act
• Governors can serve up to 7-year terms; no person may serve more than 2 terms
• Up to 5 of the 9 governors may belong to the same political party
• Appointments are made when there are vacancies or for the remainder of an unexpired term
• The Board meets regularly; all meetings are open to the public
• 6 governors are needed to achieve an ordinary quorum

Board of Governors Responsibilities 

• Elect the postmaster general — only the Board has the power to remove the postmaster general
• Direct the powers of the Postal Service
• Direct and control its expenditures
• Review USPS practices
• Conduct long-term planning
• Set policies on all postal matters

Biden’s Board of Governors Nominees

Anton A. Hajjar – former general counsel to the American Postal Workers Union

Amber F. McReynolds – currently the CEO of the National Vote at Home Institute

Ronald Stroman – previously served as Deputy Postmaster General and Chief Governmental Relations Officer for USPS

Current Board of Governors Members

Ron A. Bloom, chairman (D) – appointed by President Trump and confirmed by the Senate in 2019, Bloom was unanimously elected by the Board to become Chairman in February 2021.

Roman Martinez IV, vice chairman (R) – appointed by President Trump and confirmed by the Senate in 2019, Martinez was unanimously elected to serve as Vice Chairman in February 2021.

John M. Barger (R) – appointed by President Trump and confirmed by the Senate in 2019, Barger will serve for the remainder of a term that expires in December 2021.

Robert M. Duncan (R) – appointed by President Trump and confirmed by the Senate in 2018, Duncan previously served as Chairman until February 2021. His term expires in December 2025.

Donald L. Moak (D) – appointed by President Trump and confirmed by the Senate in 2020, his term expires in December 2022.

William D. Zollars (R) – appointed by President Trump and confirmed by the Senate in 2020, his term expires in December 2022.

Strong 2021 Numbers for Ecommerce Demonstrate Need for Affordable, Reliable Package Services

NRF: Strong Retail Sales Expected With Increased Vaccinations & Government Stimulus
“The dramatic increase of nearly 18% in March retail sales over the same period last year confirms that a confident consumer is driving the economic rebound, and that should continue through the remainder of 2021,” said NRF President and CEO Matthew Shay. “American households are clearly feeling the full effect of additional fiscal stimulus, gains in the job market and the reopening of the economy. Although there have been some recent issues related to vaccines, consumer confidence remains high and an optimistic outlook for the future continues to grow. Retailers remain committed, transparent and emphatic about prioritizing customer and employee safety as they welcome shoppers back into their stores this spring.”

Mastercard Report Reveals “E-Commerce a Covid Lifeline for Retailers”
With consumers kept at home throughout the pandemic, a new report from Mastercard found that ecommerce comprised $1 out of every $5 spent on global retail in 2020 — compared to $1 out of every $7 in 2019.

• Approximately 20-30% of the pandemic-related shift to ecommerce is expected to be permanent
• Essential retail sectors like groceries saw some of the biggest growth in ecommerce; 70-80% of the shift to grocery ecommerce will likely be permanent even beyond the pandemic
• International ecommerce grew by as much as 30%
• Consumers are purchasing at a larger number of websites and online marketplaces than ever before

Delivering The News: What We’re Reading

• Reuters: U.S. Senate panel to consider Biden Postal Board nominees April 22
• Chain Store Age: Etsy extends carbon reduction effort to packaging
• Federal News Network: USPS earns 91% approval in IG survey despite pandemic challenges
• Pitney Bowes BoxPoll: Green acres is the place to be
• Washington Post: Congress should stop attacking DeJoy and consider his plan to fix the Postal Service
• VentureBeat: The B2B ecommerce boom will continue beyond the pandemic
• The National Interest: The U.S. Post Office Is A Public Service, Not A Business

The Package Coalition is an alliance of America’s top retail, e-commerce and logistics companies committed to preserving reliable and affordable postal package delivery services. The Postal Service delivers packages directly to the doorstep of more than 161 million delivery addresses across the country, contributing trillions of dollars to the US economy and supporting millions of jobs and small and medium sized businesses.
Keep up with the Package Coalition by following us on Twitter (@PkgCoalition) or visiting our website.