Japan Post to end Saturday standard mail delivery
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Japan’s Internal Affairs and Communications Ministry has accepted a proposal from a government panel to end Saturday delivery for standard mail in the country due to a labor shortage at Japan Post Co. and a drop in demand because of increased use of the internet.
Japan Post, a unit of Japan Post Holdings Co., has been calling for a review to trim standard mail service hours to five days a week from the current six, to address the workforce shortage. The company estimates the changes will lift its profit from the postal service business by ¥62.5bn (US$594m) through reduced labor costs, which are on the rise due to the staffing shortfall.
Saturday delivery for parcels is to remain, along with express and registered mail. The postal service unit is considering a 10% cut in charges for express mail in return for discontinuing Saturday mail service. The panel also proposed extending the standard delivery time limit of three days to four days to maintain stable services.
Questions & Answers
Q.Why is Japan Post planning to end Saturday standard mail delivery?
Why is Japan Post planning to end Saturday standard mail delivery?
The decision is driven by a labour shortage at Japan Post Co. And a decline in demand for standard mail due to increased internet use. A government panel accepted Japan Post's proposal to address these issues.
Q.What is the expected financial benefit for Japan Post from these changes?
What is the expected financial benefit for Japan Post from these changes?
Japan Post estimates that ending Saturday standard mail delivery will increase its profit from the postal service business by ¥62.5bn (US$594m). This will come from reduced labour costs, which are currently rising due to staffing shortages.
Q.Which types of mail services will still be delivered on Saturdays?
Which types of mail services will still be delivered on Saturdays?
Saturday delivery will continue for parcels, express mail, and registered mail. The changes specifically apply to standard mail services, which Japan Post aims to trim to five days a week.
Q.Will next-day delivery for standard mail also be affected by these changes?
Will next-day delivery for standard mail also be affected by these changes?
Yes, the government panel also proposed that next-day delivery for standard mail should be ended. Also, the standard delivery time limit is proposed to extend from three days to four days.
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