By Claire Hansen – Aug. 9, 2019
THE NUMBER OF PACKAGES delivered by the U.S. Postal Service dipped in the last three months, the first such decline in nearly a decade.
The Postal Service said it delivered 3.2% fewer packages during the third quarter of the fiscal year than it did during the same time period last year. It’s the first decline in packages in nine years, according to The Wall Street Journal.
Companies like Amazon, UPS Inc., and FedEx have eaten into the Postal Service’s business as they begin to deliver packages to homes themselves.
Despite the decline, the Postal Service increased its revenue from package shipments by 4.8% last quarter. Both the volume and revenue from first-class mail, international mail, marketing mail and magazines increased over the same period last year.
Still, the beleaguered Postal Service reported a total loss of $2.26 billion. The mail delivery service has not made a profit in over 12 years.
“We are actively adapting to changes throughout the mailing and shipping landscape, providing customers with new solutions that add value for their investment, improve the service we provide, and drive internal efficiencies,” Postmaster General and Chief Executive Officer Megan J. Brennan said in a statement Friday.
Brennan said the service’s costs continue to outpace revenue – a challenge that threatens the Postal Service’s long-term sustainability.
The Postal Service is expected to lose more package business in the future. FedEx will move the packages it gives to the Postal Service for the last leg of delivery to its own delivery network.
Source: US News