USPS makes play for regional parcel traffic
The U.S. Postal Service (USPS) has rolled out a shipping
service it hopes will help it make inroads in markets where
its presence has been virtually non-existent.
The service, called “Priority Mail Regional Rate Box,” is
patterned after the USPS’s Priority Mail flat rate, which lets
mailers pay the same rate regardless of how much material
they stuff into the box. The new service is geared toward
businesses shipping packages that weigh between five and
15 pounds for short distances (up to 700 miles) and that
need to arrive in two to three days.
The service, which hit the market at the start of 2011,
takes USPS out of its shipping comfort zone. Traditionally,
the postal service has been competitive for shipments
weighing one to five pounds that move relatively long distances. To date, it has been nearly absent from the shorter-distance lanes where nearly half of all parcels move.
Parcel shipping distances in the United States are divided
into eight “zones,” which are based on the distance between
origin and destination points. For example, a zone 1 shipment would be one destined for a neighboring city, such as
a shipment originating in Los Angeles and bound for San
Diego. A coast-to-coast shipment would be classified as
zone 8.
Within the zone 1–4 matrix that the new USPS service
will attempt to penetrate, the average length of haul is 200
miles.
The service will be available to USPS’s “Commercial
Base” customers that book shipments online and to its
“Commercial Plus” customers that ship at least 75,000
pieces a year with USPS. The offering is targeted to the busi-
ness-to-consumer market and will not be available at retail
post offices. It comes with
a delivery confirmation
feature at no charge, USPS
said.
Pitt Ohio rebrands
Pitt Ohio, the Pittsburgh-based company best known for its
regional less-than-truckload (LTL) service, has launched a
rebranding initiative aimed at highlighting its truckload,
supply chain, and small package businesses.
The company dropped “Express” from its formal name,
unveiled a revamped logo, and launched a new website as
part of the effort.
In a telephone interview, President
Charles Hammel III said that the com-
pany began to expand its services sev-
eral years ago. “We decided that strict
LTL service had become more commoditized. It was less
about a specific mode and more about the supply chain—
how to speed it up and make it affordable.” The carrier
launched its truckload service in 2005 and later added sup-
ply chain services—essentially dedicated contract carriage
for customers looking to get out of the private fleet busi-
ness. In late 2009, it added small package ground service.
