Changing market conditions have created a challenging environment for the Postal Service and other postal and logistics operators, specifically in handling the increasing share of packages in the mail mix. Established operators are also facing increased competition from local and regional players. Operators are at various stages of responding to declining mail revenue by investing…
April 26, 2023 By law, the Postal Service’s retiree assets are invested exclusively in U.S. Treasury securities, which pose little risk and generate low investment returns. If the Postal Service wanted to invest in other assets, congressional action would be required. An OIG analysis found the Postal Service could have had $1.2 trillion in retirement…
The Postal Service weathered enormous challenges since the turn of the new millennium, including the 9/11 and anthrax attacks, the Great Recession, and the COVID-19 pandemic. Declining mail volume accelerated by electronic diversion strained USPS finances, and the agency made substantial investments in its package business. Efforts to restore the Postal Service to financial health…
The Postal Service Reform Act of 2022 (PSRA) is the culmination of more than a decade’s worth of congressional efforts to pass meaningful reform legislation. The PSRA contains financial reforms intended to improve the Postal Service’s financial sustainability, and operational reforms intended to increase efficiency, accountability, and transparency. The PSRA will have both short- and…
The small business segment in the U.S. is growing and has a strong potential to generate more revenue for the Postal Service. Consumer expectations are changing, including demands for faster shipping. For small businesses to compete with larger competitors, they need help with speedy and efficient logistics and fulfillment. Additional services and further outreach to…
The U.S. Postal Service’s package volume and weight have increased as First-Class Mail has declined, representing a change in mail mix. The OIG found a correlation between total package weight and letter carrier injuries. The OIG found that the Postal Service has no specific protocols in place outlining how a carrier should deliver a heavy…
The magnitude and immediacy of the impact of high inflation on the Postal Service vary widely according to the category of costs and revenue. For example, inflation has a direct impact on cost-of-living adjustments (COLAs), which are pegged to the inflation rate. Price increases for market dominant products, such as First-Class Mail, are also directly…
By supporting the Postal Service in monitoring and managing its vast network of collection points, the Collection Point Management System (CPMS) plays a key role in ensuring customers have appropriate access to the postal network and high-quality delivery service. Opportunities exist to enhance the system in ways that would improve the Postal Service’s ability to…
