US Postal Service ties up with local firm

The US government-owned United States Postal Service (USPS) has established a presence in the Philippines following its tie-up with a local partner for a cost-efficient courier service to the US mainland.

James Wade, USPS vice president for international business, told reporters during the signing of their International Customized Mail Agreement last week with Skynet International Express, that their entry into the Philippine market is part of the strategy to build up their business volume from private companies and institutions.

While he acknowledged they are not in a position to match the speed of other private courier firms like Fedex, DHL and UPS, their advantage is the greatly reduced cost of their services at the same degree of reliability and efficiency.

Compared with the quick delivery guarantee within two days offered by the private couriers, the USPS service takes up twice as much time of between four to five days. However, Wade said their clients can avail themselves of the track-and-trace system similarly used by the other companies.

The USPS is the world’s largest postal organization, accounting for 43 percent of the total mail volume globally or around 200 billion mail pieces annually.

Unlike its competitors, its network spans to more than 137 million addresses, including millions of post office boxes in the US with its vast fleet of planes, trains, trucks and delivery vehicles.

If it is considered a Fortune 500 company, USPS would rank eighth in revenues in the US and 25th worldwide.

Wade said with their partnership, Skynet will be responsible for picking up the shipments from customers, arrange for the shipments to be transported to the US, guide them through customs inspection, and then enter them into the US delivery network where the USPS employees will make the final delivery.

Although the process will be focused solely on inbound shipments to the US, Wade said the Philippines is a major market for the company, ranking as the 12th largest inbound source out of the 200 markets the USPS network covers. Most of the clients in this area are in the export business, who will find USPS’s rates affordable and its service safe and reliable.

Skynet president and CEO Henry Tsai added the partnership with USPS will break new grounds for the company and "establish a whole new level and criteria in package delivery services."

"Aside from the lowest rates in this service category, USPS provides reputable and the most efficient delivery service to the whole of the United States," Tsai said.

He said with the package market in Asia-Pacific expected to grow by a steady 10 percent annually, Skynet intends to increase and solidify its current client base and portfolio not only in the Philippines but in other markets in the region.

Tsai said they have signed up partners in 10 Asian countries – Singapore, Thailand, Malaysia, Indonesia, Sri Lanka, Myanmar, Cambodia, Bangladesh, Vietnam and Hong Kong – to expand the USPS network in the region, making Skynet the anchor company of the USPS chain in Asia.