Latest news with #DouglasTulino
Epoch Times
13-05-2025
- Business
- Epoch Times
US Postal Service to Raise Shipping Charges by Over 6 Percent
The U.S. Postal Service (USPS) intends to increase shipping prices effective July 13 and has filed a notice with the Postal Regulatory Commission on the matter, the agency said in a 'The changes would raise domestic shipping services prices approximately 6.3 percent for Priority Mail service, 7.1 percent for USPS Ground Advantage, and 7.6 percent for Parcel Select. Prices are not changing for Priority Mail Express service,' the company said on May 9. Priority Mail is one of the fastest delivery services offered by USPS, with packages arriving at destinations in two to three business days. Ground Advantage delivers in around two to five days, while Parcel Select is a solution for high-volume shippers, with packages taking two to eight days for delivery. The rate increases were approved by the Board of Governors last week. 'The USPS governors believe these new rates will keep the Postal Service competitive while providing the agency with needed revenue.' The rate changes will support USPS's $40 billion investments and continue the improvement and modernization of its operations, the postal service said. Pricing changes have been implemented as part of the Delivering for America initiative, a 10-year plan introduced in 2021 that aims to Related Stories 4/10/2025 5/9/2025 USPS revealed its Q2 financial 'As we mark 250 years of service to the nation, our organization continues to face economic headwinds. We are working diligently to control costs, increase revenues, and transform and modernize our infrastructure,' said acting Postmaster General Douglas Tulino. 'At the same time, we are seeing strong market acceptance of shipping products like USPS Ground Advantage and adopting an increasingly competitive posture across our product portfolio.' In fiscal year 2024, USPS reported a net loss of $9.5 billion, up by $3 billion compared to the previous fiscal year. USPS has initiated several cost-cutting measures to improve its financial position. On March 13, former Postmaster General Louis DeJoy said USPS had Leadership Change USPS is currently changing leadership. Following DeJoy's resignation in March, the USPS Board of Governors elected David Steiner as Postmaster General and CEO, the agency said in a May 9 Steiner serves on the board of USPS competitor FedEx and other companies. He is expected to leave the FedEx board before joining USPS, the service said. 'We anticipate Steiner will formally join the organization in July, assuming his successful completion of the ethics and security clearance vetting processes.' The National Association of Letter Carriers, a union representing 295,000 active and retired letter carriers, had Appointing Steiner to lead USPS is a 'clear conflict of interest,' it said. 'His selection isn't just a conflict of interest—it's an aggressive step toward handing America's mail system over to corporate interests.' 'Private shippers have been waiting to get USPS out of parcel delivery for years. Steiner's selection is an open invitation to do just that.' Nonprofit advocacy Keep US Posted, dedicated to the long-term health of USPS, supported the appointment of Steiner in a May 7 Kevin Yoder, Keep US Posted executive director, said the group aims to work with Steiner to make sure the postal service prioritizes its long-term sustainability and ensures affordable access to mail for Americans. 'This is a pivotal moment for the Postal Service, as self-inflicted service failures, ever escalating costs, and volume-killing rate increases by Louis DeJoy under the Delivering for America plan have pushed USPS to the brink of failure,' he said. 'We are optimistic that Steiner's leadership will strengthen the institution's mission of delivering reliable, affordable mail services to every American, every day.'
Yahoo
12-05-2025
- Business
- Yahoo
Accounting change, higher labor costs drive $3.3B Postal Service loss
U.S. Postal Service results took a turn for the worse in the second quarter, with net loss more than doubling to $3.3 billion from $1.5 billion year over year, primarily due to accounting adjustments for mandated workforce benefits. The negative growth comes on the heels of a rare profit in the first quarter. The adjusted loss, which excludes nonoperating expenses the agency can't control, also more than doubled to $848 million from $317 million for the same quarter last year. In the first quarter, the Postal Service had controllable income of $968 million. The bottom line was hurt by noncash worker's compensation adjustments of $1.2 billion due to an actuarial revaluation and changes to the discount rate – the percentage used to calculate the present value of future payments – as well as increased compensation and benefits of $449 million, and higher operating expenses of $124 million. The cost increases were partially offset by lower transportation expenses of $116 million, a byproduct of a 10-year strategic efficiency plan begun in 2021. The Postal Service also saved 10 million work hours in the quarter. The national mail operator previously projected a $6.9 billion net loss for fiscal year 2025, down from $9.5 billion last Service leadership has previously complained that the Office of Personnel Management makes actuarial mistakes that drive up the cost of pension liabilities. Total operating revenue was $19.7 billion for the quarter, essentially flat year over year. First-class mail revenue increased 1% to $6.65 billion, on a volume decline of 680 million pieces, or 5.8%, with strategic price increases offsetting the declining volume impact. Shipping and packages revenue increased 0.7% to $7.77 billion on a volume decline of 118 million pieces, or 6.9%. Marketing mail revenue slipped 1.4% as volume declined by 787 million pieces, or 5.7%. The 2025 financial plan also projects total mail and package volume of 106.7 billion pieces, a decline of 5.7 billion pieces (5.1%) from 2024, primarily due to projected declines in first-class mail and marketing mail volume. Revenue is projected to be $82.9 billion, up $2.4 billion from 2024.'As we mark 250 years of service to the nation, our organization continues to face economic headwinds. We are working diligently to control costs, increase revenues, and transform and modernize our infrastructure,' said acting Postmaster General Douglas Tulino. 'At the same time, we are seeing strong market acceptance of shipping products like USPS Ground Advantage and adopting an increasingly competitive posture across our product portfolio. We are also encouraged that the increasing efficiencies of our processing, logistics and delivery network are showing steady progress in reducing our relative cost as we serve the nation and American commerce.' The marquee product, UPS Ground Advantage, introduced two years ago, is an economical service for shipping packages up to 70 pounds in two to five business days. It replaced several other parcel delivery products. Ground Advantage volumes grew 16% last year, led by heavyweight shipments, and 22.6% in the first quarter versus the same period in 2024. On Friday, the U.S. Postal Service board of governors named former Waste Management CEO and current FedEx board member David Steiner as the next postmaster general, effective sometime in July. Click here for more FreightWaves/American Shipper stories by Eric Kulisch. Write to Eric Kulisch at ekulisch@ RELATED STORIES: Postal Service board names FedEx official as CEO before vetting complete US Postal Service invites DOGE to fix structural problemsThe post Accounting change, higher labor costs drive $3.3B Postal Service loss appeared first on FreightWaves. Sign in to access your portfolio
