Category: USPS

USPS

Postal Regulatory Commission financial analysis of the US postal Service.

In FY 2016, the Postal Service generated its third consecutive year of Operating Income despite an increase in operating expenses and the expiration of the exigent surcharge in April 2016. Revenue from the Market Dominant and the Competitive products rate increases, the exigent price surcharge during the earlier half of the fiscal year, and the continuing growth in Competitive products volume contributed to a net operating income of $0.6 billion.1 This is $0.6 billion less than the net operating income of $1.2 billion recorded in FY 2015. When all adjustments are included, the net operating income of $0.6 billion becomes a total net loss of $5.6 billion, a deterioration of $0.5 billion compared to FY 2015.  The increase in the total net loss is largely driven by a $1.5 billion increase in overall compensation and benefits costs and an increase in non-cash workers’ compensation expense of $0.9 billion caused by a decrease in the discount rate. 

Read the full report. FY 2016 Financial Analysis Report

USPS

International Mail: Temporary Suspension of Mail Service to Guatemala

US Postal Services issues an International Service Disruption.

On April 11, 2017, the Postal Service™ announced the suspension of most mail services to Guatemala. Until further notice, all Post Offices™ and other acceptance locations must not accept any mail destined to the country of Guatemala, other than Global Express Guaranteed® (GXG®) service, which is still available. The suspension affects Priority Mail Express International®(PMEI), Priority Mail International® (PMI), First-Class Mail International®(FCMI), First-Class Package International Service® (FCPIS®), International Priority Airmail® (IPA®), International Surface Air Lift® (ISAL®), and M-Bag®items.

For already deposited items other than GXG addressed to Guatemala, Postal Service employees must endorse them “Mail Service Suspended — Return to Sender” and then place them in the mail stream for return.

For any returned item bearing a customs form, as well as any item shipped with Priority Mail Express International service, the Postal Service will, upon request, refund postage and fees on mail returned due to the suspension of service.

For all other returned items not bearing a customs declarations form, the Postal Service will, upon request, refund postage and fees on mail returned due to the suspension of service, or the sender may remail them with the existing postage once service to Guatemala has been restored. When remailing under this option, customers must cross out the markings “Mail Service Suspended — Return to Sender.”

On April 11, 2017, the Postal Service™ announced the suspension of most mail services to Guatemala. Until further notice, all Post Offices™ and other acceptance locations must not accept any mail destined to the country of Guatemala, other than Global Express Guaranteed® (GXG®) service, which is still available. The suspension affects Priority Mail Express International®(PMEI), Priority Mail International® (PMI), First-Class Mail International®(FCMI), First-Class Package International Service® (FCPIS®), International Priority Airmail® (IPA®), International Surface Air Lift® (ISAL®), and M-Bag®items.

For already deposited items other than GXG addressed to Guatemala, Postal Service employees must endorse them “Mail Service Suspended — Return to Sender” and then place them in the mail stream for return.

For any returned item bearing a customs form, as well as any item shipped with Priority Mail Express International service, the Postal Service will, upon request, refund postage and fees on mail returned due to the suspension of service.

For all other returned items not bearing a customs declarations form, the Postal Service will, upon request, refund postage and fees on mail returned due to the suspension of service, or the sender may remail them with the existing postage once service to Guatemala has been restored. When remailing under this option, customers must cross out the markings “Mail Service Suspended — Return to Sender.”

https://about.usps.com/news/service-alerts/welcome.htm#toggle_guatemala

FedEx, USPS

FedEx Signs New Express Air Transportation Agreement with United States Postal Service

FedEx Signs New Express Air Transportation Agreement with United States Postal Service

The FedEx agreement with the US Postal Service extends their alliance for the next seven years, and provides significant benefits to both parties.

The Postal Service locks in its main air transportation network including the unique operating efficiencies and level of service it needs to support its business objectives for Priority Mail. The growth of Priority Mail is a key element in the USPS’s strategic refocus to develop its parcel business along with the deployment of state of the art scanning technology and acquisition of a new delivery fleet designed for parcel and mail delivery. Priority Mail is a major USPS success story in today’s burgeoning eCommerce marketplace.

FedEx maintains a key customer and revenue stream, and the postal volume supports its operating efficiencies for the air and hub operations.

A “Win Win” for both partners.

USPS

Too Little, too late?

USPS’s “Arriving soon via USPS Mail” email notification system needs to be redesigned from the customer point of view if it is to succeed as a primary underpinning of USPS operating infrastructure in today’s highly competitive online marketplace.  Right now there is little value for either the commercial sender or recipient.  Here’s what I recommend:

  • All classes of non-package mail should be included, not just first class mail.
  • Packages should be included.
  • The wording should say, “Arriving TODAY…”, not “Arriving soon…”
  • Provide links to images of the pieces that will be delivered.

Downstream, all business mail should carry an “Intelligent Mail Barcode(R)” generated by the mailer’s ERP system.  This would enable business sender tracking of all their sent mail and when it is actually delivered when scanned by the recipient’s mobile device.  The sender could then send a promotional or thank you message to recipient electronically.

Pricing for such functionality can be approached as a value added feature or a new sub-class of commercial mail to distinguish it from other classes such as First Class mail or 2nd class  mail.

Can the USPS redevelop and market “Informed Delivery (TM)” within the next year?  If it can’t the precipitous decline of all types of lettermail will continue. It will be too little, too late for the USPS.

USPS

Informed but not delivered

On a recent day,  I received my US Postal Service InformedDelivery (TM) email notification that I had mail arriving soon  via my normal daily USPS mail delivery. However, when I went to my apartment mailbox at the end of the day, there was nothing there, no letters, no magazines, no circulars, nothing.  Now, granted that the USPS does hedge its delivery promise with the words “Arriving soon..” But, I saw our USPS letter carrier arrive at our building lugging his tubs and trays of items for delivery.  What happened? It seems our USPS carrier did not have my mail so I was missed completely.  Is the USPS in slow decline?

United Parcel Service (UPS), FedEx and DHL made package deliveries that day, some of which were mine and I received with prior notification.  Not only that, those services deliver on Sunday as a regular part of their business.  The USPS does not deliver mail on Sunday, unless it’s  “Express Mail” or mail under an contract with a merchant such as Amazon.