Regulation

Senator warns of “heavy trade-off” in cutting USPS deliveries

Wednesday, October 6th, 2010

The chairman of the US Senate’s Federal Workforce subcommittee has spoken of his concern for the 40,000 jobs that could be lost if the US Postal Service is allowed to cut Saturday deliveries.

Senator Daniel Akaka said on Monday that cutting 17% of the USPS delivery service for a projected 5% cost savings was a “heavy trade-off”.

He also cast doubt on USPS estimates that moving to a five-day delivery service would save $3bn a year.

“I am concerned about the impact on federal workers in these challenging economic times,” said the Senator from Hawaii.

“If such a dramatic shift in delivery service is to take place, policy-makers need to see a thorough analysis of the true savings and costs of reducing mail delivery to five days.”

The Senator’s comments came as the Postal Regulatory Commission continues to review the USPS request to drop Saturday deliveries in order to help stem its $7bn-a-year losses.

The Commission has been reviewing the request since April, describing it as “one of the most significant changes the Postal Service has ever presented to the Commission”.

Much of Senator Akaka’s fears about the changes in USPS deliveries were specific to his home state of Hawaii, where he pointed out that a population spread across six islands was particularly reliant on the Postal Service.

Neither Fed Ex nor UPS offer Saturday delivery services in Hawaii, he said, with the only alternative being USPS Express Mail, which could be three times more expensive than Priority Mail and hampered by a shortage of staff resources.

The Senator said dropping Saturday deliveries could “severely impact” businesses in Hawaii during a difficult economic period.

He explained: “Hawaii is unique in that we rely on our local businesses for services and goods to a higher degree than our mainland counterparts. In turn, those businesses often rely on the Postal Service to deliver those goods.”

Sen. Akaka also warned that Hawaii’s postal elections could be disrupted by the loss of Saturday deliveries, and that health could be at risk if mail-order pharmaceuticals were affected.

He said: “Prescriptions often come from the mainland, and a delivery delay at processing facilities could prove dangerous to consumers.”

Source: Post&Parcel

Tags: , , , ,



One Response to “Senator warns of “heavy trade-off” in cutting USPS deliveries”

  • When are the politicians going to wake up to the fact that postage is not urgent anymore.

    They should think “out of the box” and encourage local solutions to local problems. If Hawaii wants saturday delivery let them pay extrafor it. Then they would decide they don’t need it.

Leave a Comment

You must be logged in to post a comment.

P&P News Sign-up (Help)

 Daily newsletter  Weekly newsletter

Jobs RSS Job of the week

Marketing Manager

South East, United-Kingdom
Salary: 45,000 - 60,000 GBP per annum

Advertise with us

Advertise with us
We provide brands with an exciting range of advertising opportunities to reach the influential Post & Parcel audience. With campaigns suitable for every budget you can achieve your marketing objectives with Post & Parcel.

Find out more

New Directory Members

JCtrans.net

JCtrans is the most famous domestic logistics integrated portal in China. Relying on electronic commerce and web-based platforms, JCtrans takes advantage of e-market, accounts settlements on line, logistics and finance on line, and credit systems, which are a series of diversified online services to integrate resources for logistics and trade areas domestically and overseas.

About Post & Parcel

Post & Parcel is your key to the global mail and express industry. Every week Post & Parcel features the latest news, analysis of trends, insightful viewpoints, top jobs and exclusive interviews with leading industry experts.


Find out more