Tag: USPS

Though mailers still expect postal reform bills to be introduced shortly, many are growing less confident that legislation will be passed before the end of the year because of the fall elections.
House Government Reform Committee chairman Tom Davis, R-VA, will introduce a postal reform bill by the end of the month with Rep. John McHugh, R-NY, who chairs the House committee’s postal panel, a McHugh spokeswoman said.

The U.S. Postal Service’s Parcel Return Service has generated USD5 million in revenue since it began as a two-year pilot program in October, the postal service said.

Parcel Return Service lets mailers provide customers with a prepaid return label that can be included in shipments, mailed to customers or made available to customers for download via the Internet.

The U.S. Postal Service has published in the Federal Register a final rule that will raise Standard mail five-digit bundle minimums from 10 to 15 pieces for mail pieces that weigh less than 5 ounces and are thinner than three-quarters of an inch. The USPS said the change will increase processing efficiencies, reduce the overall production of bundles of certain Standard mail flat-size pieces and decrease overall USPS piece and bundle-handling costs. Most mailers agree that it will reduce bundle-handling costs for the USPS and mailers.

Both the Presidential Commission on the U.S. Postal Service and GAO’s past work have reported that universal postal service is at risk and that reform is needed to minimize the risk of a significant taxpayer bailout or dramatic postal rate increases. The Postal Service’s financial viability is at risk because its business model–which relies on mail volume growth to cover the costs of its expanding delivery network–is not aligned with 21st century realities. Financial, operational, governance, and human capital challenges threaten the Service’s ability to remain self-supporting while providing affordable, high-quality, and universal postal service. Key trends that demonstrate the need for reform include declining mail volume, particularly for First-Class Mail; changes in the mail mix from high-margin to lower-margin products; increased competition from private delivery companies; and subpar revenue growth.