Friday 31 July 2020

The " Snail Mail " Question !

We seem to have a quixotic situation evolving within Australia Post.   They are about  to expand parcel delivery to a seven day basis while mail delivery contracts to home delivery taking place every second day.  The reason given for this conundrum is the ever depleting flow of letters through the system, counter balanced by the amazing growth of internet shopping.

This is obviously exacerbated by the coronavirus lockdown.  The closure of traditional shopping centres has forced customers to change shopping habits but this was a new mood pattern that was quite evident before the virus came on the scene.  In fact there is doubt that when the virus finally departs we may not see the same plethora of shops reopen.   Internet shopping seems to have gained a permanent hold and that parcel delivery flow looks to be permanent.

Initially, the mail system was an integral part of commercial life in Australia.  Most services were billed on a monthly basis and for the cost of a stamp Australia Post would deliver to a home letterbox anywhere in Australia.  This was a high security operation and the public had confidence that money sent as a birthday gift through the post would reach its destination safely.

Because of the volume handled daily, the cost of a postage stamp was low and as the numbers of letters dwindled the stamp cost has risen.  We are fast reaching the stage when changing monthly payment cycles are only made by email billing or payment is demanded by direct debit.  The era of electronic computer contact and cheap phone calls has reduced the personal letter flow to the ever decreasing aged in our communities.

We are fast reaching the stage when delivery speed for letters has dropped by the wayside.  The sheer volume of parcels now handled by the Post Office has reduced the delivery cost to the point where elevating a letter to the priority status of a parcel and ensuring overnight delivery becomes a reality.  It seems obvious that we are heading into an era of first and second class mail.  Eventually, we may see second class mail delivered on a weekly rather than a daily basis.

It all depends on the importance of what is to be delivered.   The Post Office parcel delivery system has the function in place to deliver a " courier " style letter on an overnight basis.  It is obvious that the old overnight postal service is becoming uneconomic because of ever dropping volume and the importance of what is to be posted must be at the discretion of the sender.  It is now evident that there is not a vast difference between the rate for parcels compared with the rising letter rate.

That seems to be the inevitable outcome of this " supply and demand " situation as it evolves further  !

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