Postal TrendWatch Q4 07
As of September 30, 2007, the Postal Service completed its first full quarter operating under its new rate structure, which was implemented on May 14, 2007. In a continuation of previous trends, First Class Mail volume declined, while Standard Mail volume increased.
Meanwhile, USPS’s year-end reports revealed significant financial setbacks, which the Service attributed to benefit-funding requirements of the Postal Accountability and Enhancement Act. Given the 10-year duration of those funding requirements, this problem is likely to continue. As a result, the Postal Service will need to continue increasing productivity and cutting costs to meet this requirement under the law’s new rate-cap provisions.