Latest news with #USPSGroundAdvantage
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
Yahoo
09-05-2025
- Business
- Yahoo
USPS board names FedEx director David Steiner as 76th postmaster general
May 9 (UPI) -- The U.S. Postal Service Board of Governors announced Friday that former Waste Management CEO David Steiner and a board member of FedEx as the 76th postmaster general. Steiner, 67, will succeed former Postmaster General Louis DeJoy, who resigned in March, and acting Postmaster General Doug Tulino. DeJoy was appointed by Donald Trump during his first term in 2021. The independent federal agency has been in operation for 250 years since its creation July 26, 1775, at the beginning of the American Revolution. "It is an incredible honor to be asked to lead the world's greatest postal organization, with a history that stretches back before the founding of the United States," Steiner said in a news release. "I deeply admire the public service and business mission of this amazing institution, and I believe strongly in maintaining its role as an independent establishment of the executive branch. He was Waste Management's CEO from 2004 through late 2016. "Dave is the right person to lead the Postal Service at this time to ensure this magnificent and historic organization thrives into the future," USPS Board of Governors Chair Amber McReynolds said in a statement. "Dave is a highly regarded leader and executive with tremendous vision, experience and skill that can be." Steiner earned a Bachelor of Science degree in accounting from Louisiana State University and a Juris Doctor degree from the University of California, Los Angeles. FexEx has been shipping competitor with USPS but provides "last-mile" service for some addresses for the private company. Steiner plans to resign his board position. Frederick Smith, who is FedEx's founder and executive chairman, said Steiner can help USPS become more efficient. Smith said his "sharp business acumen will be key to addressing the significant challenges facing the United States Postal Service which has lost more than $108 billion since 2007 despite receiving billions in taxpayer relief" in a statement to CNBC. USPS lost $3.3 billion in the second quarter of the 2025 fiscal year compared with $1.5 million last year, the agency announced Friday. Total revenue was $19.7 billion, about the same as last year. "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," Tulino, the acting postmaster, said. "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." President Donald Trump has proposed merging the Commerce Department and the Postal Service. USPS employee unions protested this proposal. "Well, we want to have a post office that works well and doesn't lose massive amounts of money, and we're thinking about doing that, and it will be a form of a merger," Trump said at Commerce Secretary Howard Lutnick's swearing-in ceremony in February. "It'll remain the Postal Service, and I think it'll operate a lot better than it has been over the years." Earlier this month, Elon Musk and the Department of Government Efficiency called USPS a prime candidate for privatization. DeJoy confirmed 10,000 USPS jobs would be cut through the agency's voluntary early retirement program. "I look forward to engaging with its employees, who provide such an important service to all our communities," Steiner said. "As the entity with the largest union membership in the United States, I look forward to engaging with the unions and management associations to ensure that together we create a world-class employment experience. I also look forward to working with industry associations, customers, and policymakers, as we chart a positive path forward." The National Association of Letter Carriers' president criticized Steiner's selection. "His selection isn't just a conflict of interest -- it's an aggressive step toward handing America's mail system over to corporate interests," Brian L. Renfroe said in a statement obtained by Politico. "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." Since 1982, the agency has received little tax dollars and has raised prices. The cost of a 1-ounce letter will increase 2 cents to 78 cents in July 2025. Ten years ago it was 49 cents and 20 years ago 39 cents. In 1971, it was 8 cents. "I am excited by the challenges ahead and by the many opportunities to shape a vibrant, durable and increasingly competitive future for the Postal Service," Steiner said. USPS delivers an average of 318 million pieces of mail each day to 169 million addresses. There have been proposals to cut home delivery from six to fix days a week.
Yahoo
07-04-2025
- Business
- Yahoo
USPS updates service standards, impacting mail delivery times
Changes to United State Postal Service just took effect and it could impact how you get your mail. USPS says it's refining its service standards for First-Class Mail, Periodicals, Marketing Mail, Package Services, USPS Ground Advantage, Priority Mail, and Priority Mail Express. Under the new approach, some mail will have a faster standard, and some will have a slightly slower standard. The changes took effect on April 1st as part of the ongoing Delivering for America 10-year plan. It's in an effort to save at least $36 billion dollars over the next decade. USPS says upwards of 75% of customers will not notice a change in First-Class Mail service, but that number is up for debate. The agency also estimates 14% will see faster delivery times and 11% will face longer delivery times. Overall for First-Class Mail, USPS says the current service standard day range of 1-5 days is staying the same. 'The new service standards are easy to understand and provide more precise expectations for mailers, as they are based on 5-Digit ZIP code pairs, rather than current standards that are based on 3-Digit ZIP code pairs,' the USPS stated in a recent FAQ fact sheet. Click this link to read the full document. USPS has also released a new Service Standards Map on its website that allows customers to see how many estimated days it would take mail to arrive based on their zip code. Implementation will be in two phases. The first began on April 1 and the second on July 1, 2025. To find more on the changes, check out coverage from News Nation here. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
05-04-2025
- Business
- Yahoo
Is USPS mail delivery changing? How postal service changes affect South Bend post offices
The United States Postal Services is has been purging billions of dollars each year since 2007. According to USPS, the organization relies on the sales of stamps and postage, its products and services to fund operations and usually does not get tax dollars for operating expenses. It's independent, meant to be self-financing. President Donald Trump has been critical of the service and in March, then-U.S. Postmaster General Louis DeJoy said he signed a deal with the Department of Government Efficiency, headed by Elon Musk. Here's what we know: Yes, USPS is changing mail delivery. Some parts of the plan have already started with an official start coming soon. The second phase of the plan is set to roll out later this year. According to information released by USPS, the shifts will help save the organization $36 billion over a decade. The agency has seen a sharp decline in first-class mail since electronic communication became more popular. It's dropped 80% since 1997, and volumes are the lowest since 1968, according to Reuters reporting. It lost $9.5 billion in 2024. USPS is expected to lose another $6.9 billion in 2025, according to reporting from Government Executive. The first round of changes is already underway and began on April 1, 2025. A second set of changes are planned for July 1, 2025. More information will be released closer to that date. Changes are coming to the United States Postal Service in April that will affect millions of customers across the country. The moves are designed to improve efficiency and cut costs, but some people might get certain mail slower. Service standards will be "refined" for: First-Class Mail. Periodicals. Marketing Mail. Package Services (Bound Printed Matter, Media Mail, and Library Mail). USPS Ground Advantage. Priority Mail. Priority Mail Express. Some areas could get "2-3-day turnaround service within regions and specific local areas," according to the postal service. Some post offices could have delivery extended by a day. The information provided didn't say which ones could expect delayed mail delivery caused by changes to regional transportation schedules. The postal service said, "all packages will benefit from more reliable service." The 2-5 day range for USPS Ground Advantage will stay the same. However, some shipping product will have a slower delivery range going forward. Five-digit zip code add-ons are meant to streamline sorting and delivery as compared to the current three-digit pairs. USPS already has a map online that will let customers see how long it will take to deliver mail from one zip code to another. Customers also can look up service standards at "Under the new approach, while most mail will retain the same service standard, some mail will have a faster standard, and some will have a slightly slower standard. For First-Class Mail, the current service standard day range of 1-5 days is staying the same, while the day ranges for end-to-end Marketing Mail, Periodicals, and Package Services are being shortened. All Mail will benefit from more reliable service," a USPS news release reads. Yes. In March, then-U.S. Postmaster General Louis DeJoy said he signed a deal with the Department of Government Efficiency, headed by Elon Musk. The department had been exempt from DOGE cuts, but DeJoy reportedly told Congress in a letter that USPS would cut 10,000 jobs over the next month through a voluntary early retirement program. The program is expected to be completed sometime in April. The reduction plan was announced in January and is different than the federal employee buyout offer announced for most civilian federal employees. According to a news release from the American Postal Workers Union, workers who opt to retire early can get a one-time $15,000 incentive paid in two parts. DeJoy said the deal with DOGE and the General Services Administration will help with "identifying and achieving further efficiencies." According to USPS, the moves designed to improve efficiency and cut costs could force people to receive mail delivery at a slower rate. President Donald Trump has shown disapproval over USPS operations and aims to see it make a profit. He has floated the idea of merging it with the U.S. Department of Commerce − which would halt the USPS's independent status and put it under his administration. Musk has said he wants to see it privatized. Commerce Secretary Howard Lutnick has suggested that postal workers could carry out the U.S. census and handle tasks performed by Social Security employees as cost-cutting measures. Newsweek reporting said the merger, if it goes through could close offices, slow delivery, increase costs and lead to layoffs. It also could hit rural areas hardest. The Washington Post, citing postal sources, said the plan would "probably violate federal law." It was part of a story, also reported by The Wall Street Journal, citing anonymous sources who said Trump planned to fire the governing board of the postal service via executive order. The White House said no such order existed, but Trump did confirm that merger was being considered. USPS employs 530,000 workers. USPS delivers mail to 163 million addresses nationwide. Chris Sims is a digital content producer for Midwest Connect Gannett. Follow him on Twitter: @ChrisFSims. This article originally appeared on South Bend Tribune: USPS changes 2025: Is US post office changing mail delivery? What we know
