Third Quarter Results
The third quarter fiscal year results are in for the United States Postal Service, indicating a net loss of 2.1 billion dollars. This amount, when compared to the same quarter last year, is an increase in net loss by 573 million dollars. The USPS cites a rise in governable loss due to the increase in transportation costs. This total equals 587 million dollars.
Postmaster General and CEO Megan J. Brennan states, “The growth in our lower-margin package business is not sufficient to make up for the accelerating mail volume declines. Our financial situation is serious, but solvable. The continuation of aggressive management actions, and legislative and regulatory reform, will return us to financial stability and enable the Postal Service to maintain the long-term affordability of mail, invest in America’s mailing and shipping industry, and best serve the American public.”
News on Capitol Hill
The board of the American Catalog Mailers Association will be attending an event on Capitol Hill on November 2nd to show their support, meeting with members of congress to lobby for The Postal Service Reform Act of 2017 (H.R. 756).
H.R. 756 was introduced to the House in January of 2017. From here the bill will need to move through the House, the Senate, and lastly be approved by the President to pass. According to congress.gov, if this bill is passed, it will “restore the financial solvency and improve the governance of the United States Postal Service in order to ensure the efficient and affordable nationwide delivery of mail, and for other purposes.”
David Partenheimer, media writer for the USPS states, “The Postal Service continues to engage with stakeholders to advance H.R. 756, the Postal Service Reform Act of 2017, through the legislative process in the 115th Congress. The Postal Service’s long-term financial stability also depends on the Postal Regulatory Commission establishing a new pricing system that enables the organization to generate sufficient revenues to cover its costs.”
The stability of the 2018 postal promotions remains vulnerable due the absence of the USPS Board of Governors. For more information read our latest blog here.
Improving the Value of Mail
Letter mail volumes decreased by roughly 4% in the third quarter for the USPS, while package volume showed a successful growth of 11 percent.
Chief Financial Officer and Executive Vice President, Joseph Corbett, stated, “The volume declines in mail are expected to continue due to the ongoing migration from mail toward electronic communication and transaction alternatives. To address this trend, we have focused on innovations, including mobile and digital strategies, to improve the value of mail. We must also continue to focus on reducing expenses and improving efficiencies, including adjusting employee staffing and scheduling to match the changing workload.”