Chapter 2: Postal Operations
C. International Mail
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International mail experienced a decline in revenue compared to 2001. The events of September 11, 2001, and the continued worldwide economic downturn negatively affected International Business revenues, in a field of increasingly competitive international mail and package delivery services. This competition came from both private carriers and foreign postal administrations.


International mail revenues declined 8.8 percent to $1.580 billion during 2002. Associated volume and weight also declined by 16.5 percent and 13.8 percent, respectively. The relatively smaller decline in revenue is attributed to the international rate adjustments implemented in January 2001. With greater emphasis on developing the global package sector, air parcel post posted a 4.0 percent increase in revenue for the year, with a corresponding increase of 3.3 percent in total air parcel post weight for the period. Letterpost traffic was down for both economy and airmail service offerings as a consequence of a softening in the global economy and the intensity of foreign competition now operating in the U.S. market. Bulk letter and printed matter services, specifically International Priority Airmail (IPA), and International Surface Airlift (ISAL), were also down, reflecting the economic weakness that is impacting business mailers.

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Chapter 2 Table of Contents

A.  Public Perceptions, Customer
     Outreach and Mailer Liaison

B.  Product Development

C.  International Mail

D.  Mail Volume and Service

E.  Mail Distribution

F.  Delivery Unit Operations

G.  Stamp Services

H.  Licensing Program

I.  Commercial Sales

J.  Retail Programs:
     Building the Core

K.  Pricing and Classification

L.  Marketing Technology and
     Channel Management

M. The Internet:
     Transforming the Way We Connect
      with Our Customers

N.  Technology

O.  Operations Planning

P.  Financial Management