Quote:
Originally Posted by multiweb
Who sets the international postage rates? Is it up to the sending country or is it more complicated and depends on other destination countries as well?
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Hi Marc,
It is complex.
Countries are members of the Universal Postal Union.
There is a system known as "terminal dues".
In a nutshell, say for mail to and from Australia and the United States,
the mail is weighed and say if more mail was coming from the United
States to here than vice versa, then the United States Postal Service
would monetarily compensate Australia Post with "terminal dues".
China has developing nation status so it gets a more favorable rate
on terminal dues than Australia does.
What that means in reality is that Australian individuals and businesses
when they post anything overseas are essentially subsidising Chinese
businesses and Australian buyers who buy a lot of their "free delivery
from China by Australia Post" stuff online.
Approval for increases for basic postal rates here is made by Australia
Post making an application to the Productivity Commission.
Australian postal rates have been going steadily up and up over the
past 14 years. Public servants who call themselves CEO's and
government-stacked board members have been voting themselves
some of the highest salaries in the world for any postal service.
In addition to annual appeals by Australia Post to the Productivity
Commission to increase prices, they do so surreptitiously as well.
One trick is that for international shipping, the postal rates are
divided into zones.
Say the zones are numbered 1 through 6, where zone 1 is the cheapest
and zone 6 the more expensive.
If they want to increase the postal rates to say, Japan, what they will
do with no fanfare is bump Japan up from say zone 3 to zone 4.
They pull this trick regularly.
Whilst Australia post claim they make a loss on letter delivery
(all that cheap crap people buy from China), they make a profit overall
by charging a premium on international post. It helps pay for fat cat
bonuses and for Cartier watches along the way. And yes it stinks.