International Business achieved modest revenue growth during 2001 while at the same time reducing administrative overhead and related expenses. Postage revenue increased by 1.8%. Corresponding outbound international mail volume, however, declined by 1.5%. Major focus was directed at both product and market development for package services, infrastructure improvements through electronic data interchange with customers, suppliers, and foreign postal administrations; and progress in forming among like-minded countries to emphasize service performance as a major initiative.

    1. Volume and Revenue
During a period of economic slowdown in the national economy, total international revenue grew by 4.5% or more than double the rate of growth of domestic mail. Revenue for 2001 was $1.731 billion, up $74.1 million over the prior year. Mail volume was 1.08 billion pieces, down 16.9 million pieces from 2000. Revenue and volume performance was mixed across all international product offerings. International Priority Airmail and Air Parcel Post showed the most dramatic strength with revenue gains of 35.5% and 20.1%, respectively, on corresponding volume increases of 38.2% and 20.6%. Surface Parcel Post also posted revenue increases of 16.9% on a 4.4% increase in volume. Surface and Air Letter-post traffic both declined with respect to revenue, pieces and weight. Of the $74.1 million net increase in revenue, $2.3 million was derived from international mail fees, $25.5 million from outbound postage revenue, and $46.3 from foreign postal administrations to cover the cost of handling and delivery of foreign origin mail in the United States.