While the USPS gets tossed around like a political football and threatens insolvency without more federal aid, the agency continues to report poor results as already lower mail rates have fallen through the floor due to coronavirus. Meantime, Trump ally, donor and fundraiser Louis DeJoy will be the new Postmaster General.
Once again, the U.S. Postal Service reported a massive net loss ($2.1B), a mail volume decline (-3.9%) and an increase in shipping volume (+0.3%) for the second quarter of 2019. See what else the USPS reported in quarter, and what solutions are on the table.
Postmaster General Megan Brennan told the House Oversight and Reform Committee that the USPS will run out of cash by 2024 if reforms are not enacted. Brennan also proposed saving billions by cutting back mail delivery to five days a week and increasing package delivery to seven days, which it already does for Amazon.
The upcoming lame duck session of Congress after the elections is the perfect time for lawmakers to consider legislation that would address the choking debt faced by the U.S. Postal Service caused by prefunding of retiree health benefits, said the head of a USPS advocacy group.
The House Oversight and Government Reform Committee wants the USPS to eliminate to-the-door mail delivery and replace it with curbside and cluster box delivery. That may have an effect on how merchants mail catalogs to prospects and customers alike.