The day of the Compromise ending a yearlong sprint
How to forget the UPU Geneva Congress 2019 which changed the worldwide Postal Remuneration System ! Jack Hamande from Belgium remembers how with Matano Ndaro from Kenya with support of Jean-Paul Forceville from France, they led up to an historical compromise reminding that dialog is key !
The Universal Postal Union (UPU) is the governing body that helps postal services around the globe facilitate the delivery of mail and packages amongst each other.
Just a year ago, applause rumbled throughout the main hall of Geneva’s International Conference Centre (CICG) on the second day of the Congress as topic leader Jack Hamande announced that the Union had found consensus on a new methodology for postal remuneration. The proposal – “Option V” – was the compromise solution adopted by acclamation.
"The announcement of the compromise was a moment of great intensity" said Jack Hamande
When the third-ever extraordinary congress of the UPU voted to adopt a compromise plan — deemed Option V, for victory — the 192 member countries ushered in an era of international mail wherein eventually, all members will have the chance to self-declare their terminal dues*, or effectively, the rates that foreign postal services will charge for service when mail or a parcel crosses their borders.
As a reminder, the United States had threatened to leave the UPU if they could not self-declare terminal dues (i.e. shipping rates).
The 2019 Extraordinary Congress when reviewing the remuneration rates for bulky letters and small packets (known as E format rates), and approved the self-declaration of these rates to be introduced in two stages:
1 July 2020 : Self-declaration of E format rates for flows between designated operators and the United States of America
1 January 2021 : All member countries have the option of introducing self-declared E format rates
*Terminal dues are the fees that a national postal service is charged to have postal items including parcels delivered in another country. Experts believe will result in significantly increased postage rates from other countries, especially countries where manufacturers were able to deliver a package from a country to the U.S. cheaper than a domestic U.S. delivery.
"what happens a year later ?"
Today, for large international shippers, they probably saw a significant rate increase for some destinations starting July 1, 2020 due to the International postal price change related to the agreement reached “Option V” within the Universal Postal Union (UPU) that was signed in September 2019.
A number of countries will be reciprocating the U.S.’s self-declared rates for outbound shipments on parcels and the U.S. will negotiate further new agreements with many additional countries, so other country shipping rates may change later in 2020.
Following some experts, market players are looking for alternative solutions where offers would provide the same shipping experience at rates that are protected from international rate increase starting on July 1, 2020.
Let's foster a sustainable postal sector growth for the benefit of All !