The postal prosperity zone (PPZ) – Part 1

𝗣𝗮𝗿𝘁 𝟭: 𝗔 𝗡𝗲𝘄 𝗘𝗿𝗮 𝗳𝗼𝗿 𝗣𝗼𝘀𝘁𝗮𝗹 𝗖𝗿𝗼𝘀𝘀-𝗕𝗼𝗿𝗱𝗲𝗿 𝗘𝗰𝗼𝗺𝗺𝗲𝗿𝗰𝗲 𝗮𝗻𝗱 𝗟𝗼𝗴𝗶𝘀𝘁𝗶𝗰𝘀

Global Hashtag#ecommerce has reshaped the landscape of cross-border trade. For decades, national postal operators – Designated Operators (Hashtag#DOs) – managed the bulk of international parcel deliveries based on preferential regulation and tariffs. The rise of new international commercial players, Hashtag#globalmarketplaces, their Hashtag#logistics service providers, consolidators, and Hashtag#expresscarriers has changed the industry fundamentally. They now control the majority of cross-border volumes, while many DOs struggle to remain relevant.

𝗪𝗵𝘆 𝘁𝗵𝗶𝘀 𝘀𝗵𝗶𝗳𝘁?

Global marketplaces have met Hashtag#consumerdemands for fast, reliable cross-border Hashtag#delivery by establishing direct, digitally-managed Hashtag#shippingchannels, often bypassing traditional Hashtag#postalnetworks.

The Hashtag#pandemic led to unprecedented growth in ecommerce, but also disrupted the postal transport network which traditionally relied on passenger flights. When passenger air traffic collapsed, Hashtag#commercialoperators rapidly turned away from the postal channel to dedicated cargo solutions and commercial Hashtag#customsclearance. At the same time, Universal Postal Union (Hashtag#UPU) tariffs and customs duties rose massively. Many DOs at destination became interchangeable last-mile carriers.

Finally, the lack of postal Hashtag#digitalintegration (the UPU was designed as a closed intra-DO environment) and advanced, automated Hashtag#infrastructure has become a major barrier to postal growth.

In the Hashtag#EU, two additional factors have changed the game: firstly, BREXIT eliminated the UK’s strategic position as a primary gateway for ecommerce into the EU. Secondly, the EU Hashtag#VAT Ecommerce Package overhauled logistics and customs models, pushing DOs and other players towards fully digitalized customs solutions, favoring major marketplaces with integrated data infrastructures using a new, consolidated, IOSS-enabled model operating through few EU hubs (gateway model).

𝗧𝗵𝗲 𝗣𝗼𝘀𝘁𝗮𝗹 𝗣𝗿𝗼𝘀𝗽𝗲𝗿𝗶𝘁𝘆 𝗭𝗼𝗻𝗲 (𝗣𝗣𝗭): 𝗥𝗲𝗱𝗲𝗳𝗶𝗻𝗶𝗻𝗴 𝗣𝗼𝘀𝘁𝗮𝗹 𝗢𝗽𝗲𝗿𝗮𝘁𝗶𝗼𝗻𝘀 𝗳𝗼𝗿 𝘁𝗵𝗲 𝗡𝗲𝘄 𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗔𝗴𝗲

Postal Prosperity Zones (Hashtag#PPZ) are an initiative started and supported by the UPU Consultative Committee (Hashtag#CC), driven by the UPU member countries and their DOs in close collaboration and partnership with commercial players. They are designed to bridge the gap between DOs and commercial players by creating seamless postal gateways for cross-border ecommerce. PPZs will equip DOs with Hashtag#digital and operational tools and capabilities to compete in this new landscape.

𝗖𝗼𝗺𝗶𝗻𝗴 𝘂𝗽 𝗶𝗻 𝗣𝗮𝗿𝘁 𝟮: 𝗪𝗵𝗮𝘁 𝗮 𝗣𝗣𝗭 𝗿𝗲𝗮𝗹𝗹𝘆 𝗱𝗼𝗲𝘀 𝗮𝗻𝗱 𝗵𝗼𝘄 𝗶𝘁 𝗯𝗲𝗻𝗲𝗳𝗶𝘁𝘀 𝗗𝗢𝘀 𝗮𝗻𝗱 𝘁𝗵𝗲 𝘄𝗶𝗱𝗲𝗿 𝗰𝗼𝗺𝗺𝗲𝗿𝗰𝗶𝗮𝗹 𝘀𝗲𝗰𝘁𝗼𝗿.