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The U.S. Postal Service has been on the losing team for far too long, as billions of dollars have been swept away by pack-and-ship giants United Parcel Service (UPS) and Fed-Ex.
Although recent reports by the agency attribute large losses in revenue to the age of the Internet – where consumers are more likely to communicate by e-mail – it’s fairly obvious that’s not the only reason numbers are down.
For years, UPS and Fed-Ex have pushed their way into the parcel-post market, leaving USPS out in the cold. Unfortunately, those temperatures are below freezing, as the Associated Press reported the Postal Service lost $3.8 billion last year.
There has also been a large decrease in the amount of mail being shipped out.
“I think as far as their volume dropping, UPS is going after the parcel business, which is what the post office has done for years. So they’ve taken a lot of that. They’ve done a good job of that,” said Joe Bennett, owner of U-Drop Packing and Shipping in Houma.
Trends are heading for even bigger losses in 2010.
U-Drop has also experienced a decrease in customers shipping parcel-post items.
Albeit the fierce competition, the economy has also played a role in damaging the agency.
The diagnosis can be found just by opening your eyes, as people are less likely to spend money on sending a letter when they can send it coursing at the speed of light through the Internet. It seems technology also has its downside, taking in millions of “consumers” who at one point or another were willing to shell out a few bucks to send that birthday card to Grandpa.
Now, it’s an e-greeting – sorry Grandpa. Unfortunately, it’s not relatives who have been hurting the most.
USPS is currently seeking advice from the Postal Regulatory Commission, an entity that will hold some weight in the decision whether or not to drop Saturday deliveries.
Congress would also have to approve the change.
If the Postal Service gets its way, thousands of mail carrier jobs would be eliminated, “…especially among part time rural carriers and non-career workers,” according to the Associated Press. With those reductions, the agency could save about $3 billion a year.
“I believe the [USPS needs] to cut back to a five-day delivery week, because they’re losing money,” said Bennett. “When you see them losing money like they do every year, they have to do something.”
USPS service centers would remain open on Saturdays, but incoming mail wouldn’t hit roads until the following Monday.
While rough roads lie ahead for the Postal Service, Bennett said his business would not be affected. Among U-Drops heavy hitters are the services they offer to offshore operators aiming to ship heavy items like 40,000-pound steel parts.
Bennett has been operating his shop for nearly 15 years, with no signs of slowing down anytime soon.
The U.S. Postal Service could be axing some activities on Saturdays, including mail delivery. * Photo by MICHAEL DAVIS
