Five months after it was initially scheduled to go into effect, the U.S. Postal Service will change how it calculates dimensional weight pricing while expanding DIM pricing to all zones across its Priority Mail Express, Priority Mail and Parcel Select products. The USPS is also lowering its DIM divisor from 194 to 166, increasing the cost.
The U.S. Supreme Court declined to hear an appeal of a lower court ruling, which denied UPS’s legal claim that the U.S. Postal Service’s pricing model gave it an unfair advantage over parcel shipping competitors. In 2018, a U.S. Appellate Court in Washington, DC upheld the pricing methodology. Amazon backed the USPS in the case.
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.
Eastern Connection, a regional carrier with a 35-plus-year history, shut down its operations earlier this month, the company announced, leaving shippers in the Northeast from Maine to Virginia looking for alternate capacity. Other regional carriers, including Lasership and CDL, stand to benefit along with UPS, FedEx and the USPS.
In a bold and unexpected move, Stamps.com, which built its business through an exclusive shipping partnership with the U.S. Postal Service, is now severing that relationship as it seeks to offer its ecommerce customers more options, while keeping a sharp eye on Amazon logistics. See what the CEO had to say and how analysts reacted.