- postalnews blog

USPS nets $152 million from operations. loses $1.8 billion to politicians

The US Postal Service took in $40 million more than it spent in November, and after two months of the new fiscal year, has a net income of $152 million. In the private sector that would be called a “profit”. Thanks to Congressional accounting gimmicks, however, the USPS will report a net loss of over $1.8 billion for the two month period. The entire $1.8 billion loss is due not to USPS operations, but to legislation enacted by the Bush Administration and the GOP controlled Congress in 2006 that requires the USPS to contribute $5.6 billion to a so-called “trust fund”, which has so far amassed over $42 billion from USPS profits.

While right wing politicians claim the trust fund is simply a “prudent” measure, no other agency or company has a similar burden. The real reason for the requirement appears to be the shifting of billions of dollars of the national debt on to the USPS, which is, conveniently, “off-budget”. The politically induced “bankruptcy” also provides cover for draconian legislation proposed by Darrell Issa, which would dismantle USPS bargaining agreements, and set up a postal “death panel” to gut the service’s infrastructure.

As far as “real world” financial results are concerned, USPS expenses remained level with the prior year, but revenue was down 3.5%. The decline in revenue reflected the continuing drop in mail volume, which dropped 6.3%, or 2 billion fewer pieces of mail. Standard mail, which had shown some growth last year, is down 7.3% in FY 2012 so far. The only bright spot in the volume numbers was the 33.6% increase in shipping services volume. While ecommerce driven package delivery is an obvious growth opportunity for the USPS, the problem is that it still represents just 15% of total revenue.

USPS Preliminary Financial Information (Unaudited) for November.

Collins: PRC opinion on PO closings confirms need for postal reform

WASHINGTON, D.C. – U.S. Senator Susan Collins, Ranking Member of the Senate Homeland Security and Governmental Affairs Committee and one of the authors of bipartisan postal reform legislation, today issued the following statement regarding the Postal Regulatory Commission’s advisory opinion on the U.S. Postal Service’s plan to close as almost 3700 post offices and other retail facilities. The Postal Service is required to ask the PRC for a non binding opinion on nationwide service changes.

The PRC said “the Commission’s primary finding is that the (closure plan) was not designed to optimize the network. The Commission recommends the use of modern optimization tools and techniques to better maximize net retail revenues while fulfilling statutory service obligations.”

“The Commission’s unanimous findings support my and many of my colleagues’ skepticism about the wisdom of mass postal closures without a more thoughtful, transparent, and data-driven process,” said Senator Collins. “Fortunately, such a process is included in the 21st Century Postal Reform Act, which I authored along with Senators Lieberman, Carper and Brown. Our bill would require the Postal Service to find savings and internal efficiencies first – before raising prices and cutting service that could drive away the very customers keeping the mail in business. Today’s PRC opinion only highlights the increasing urgency for Congress to pass comprehensive postal reform if we are to preserve the Postal Service for the next generation of Americans.

USPS Offers Stress-Free Ways to Return Gifts

WASHINGTON, Dec. 27, 2011  — What to do with the unwanted holiday gifts that have found their way under your tree? The Postal Service has a range of products and services that make it quick, easy and hassle-free to send back the boots that don’t fit, the duplicate copy of your favorite author’s latest book, or the sweater you’ll never wear.

By combining free Priority Mail Flat Rate boxes and the user-friendly tools on usps.com to print postage and schedule a free package pick-up, it’s more convenient than ever for consumers to manage post-holiday returns.

“Returning holiday gifts has never been easier,” said Gary Reblin, vice president Domestic Products. “Before the holidays, Priority Mail Flat Rate Boxes and usps.com offered the best shipping solution to deliver packages for the holidays. Now the same products and services offer the easiest, most stress-free solution for returning gifts. By going online to print postage and request a free package pick up, there’s no need to visit the Post Office — everything can be done from your home or office.”

Priority Mail Flat Rate boxes take the added hassle out of trying to determine the cost of shipping, with “if it fits, it ships”, low flat-rate prices. Priority Mail Flat Rate boxes are available free at the Post Office, at usps.com or by calling 800-Stamp-24. The Postal Service will deliver them free of charge right to your door. Choose from the Small Flat Rate Box which ships for $5.20, the Medium Flat Rate Box which ships for just $10.95 or the Large Flat Rate Box which ships for the low flat rate of $14.95. One of them should be perfect for returning those unwanted gifts.

Customers also save money on Priority Mail up to 15 percent and 5 percent on Express Mail shipping prices when using Click-N-Ship visit click-n-ship to print postage. And when the package is ready for shipping, they can go to usps.com/pickup to schedule free package pickups from the home or office. Unlike other shipping companies, there’s never a fee for this service.

The Postal Service receives no tax dollars for operating expenses and relies on the sale of postage, products and services to fund its operations.

Congressman Introduces Rural Postal Service Preservation Act

Washington, D.C.— Congressman Robert Aderholt (AL-04), today released the following statement after introducing H.R. 3744, the Rural Service Preservation Act in the United States House of Representatives:

“As the United States Postal Service’s financial picture continues to grow dim and options of reform are being discussed, I along with so many across the nation are increasingly concerned about the prospect of the postal service ending delivery to rural regions,” said Aderholt.

“As the postal service looks for reform and cost-cutting solutions, I believe rural Americans should not be singled out for postal cuts. To make sure that does not happen, I’ve introduced legislation that would ensure rural delivery continues and directs the postal service not to target rural postal employees for buy-out retirements.”

“This legislation is vital to the many rural communities of North Alabama and elsewhere across the country. I hope that my colleagues join me in recognizing the importance of this issue to America’s rural regions and support H.R. 3744,” concluded Aderholt.

Details of H.R. 3744

Ensures that the current level of postal delivery service continue for five years from enactment.

Requires any buy-out used to cut workforce of postal employees be apportioned 10% rural 90% urban.

Requires that any postal office closures also be made in the same 10% rural, 90% urban differential.

Defines rural areas with reference to the most recent decennial census and definitions of “rural” from the 2002 and 2008 Farm bills.

Aderholt currently serves as Chairman of the Subcommittee on Homeland Security for the powerful House Appropriations Committee, is a member of the Committee’s Commerce, Justice and Science; and Agriculture Subcommittees, and also serves on the Helsinki Commission.

For more information about Aderholt’s work in Congress visit www.aderholt.house.gov.

via Congressman Robert B. Aderholt : News Releases : Aderholt Introduces Rural Postal Service Preservation Act.

50,000 Packages In Limbo At UPS Distribution Center in Colorado

COMMERCE CITY, Colo. (CBS4) – Thousands of people in the metro area will open their presents a little late this year because the day started out with 50,000 packages in limbo at the United Parcel Service holding facility in Commerce City.

A lot of the packages are locked up in the warehouse Christmas Eve. Even though UPS managers came in Christmas Eve to work the customer service desk, more than a few customers may find their gifts are missing under the Christmas tree on Sunday.

The line would grow, so would the frustration.

“He said, ‘If you haven’t prearranged to have your stuff picked up, it will be another two hours.’ So I said, ‘Why didn’t you tell me before I waited two hours in this line?’ ” Scarlett Crawford of Aurora said.

Read more: 50,000 Packages In Limbo At UPS Distribution Center « CBS Denver.

PRC Advisory Opinion Finds USPS Proposal for Retail Closures Lacks Proper Analysis

Washington, DC –The Postal Regulatory Commission today issued its Advisory Opinion in Docket N2011-1 on the Postal Service’s Retail Access Optimization Initiative (RAOI), a program that identified more than 3,600 post offices and other retail facilities for possible closure this year.

The Postal Service is required to ask the Commission for an Advisory Opinion on any change in nationwide service it proposes. The Commission found that the RAOI is likely to affect access to postal services.

The Commission’s primary finding is that the RAOI was not designed to optimize the network. The Commission recommends the use of modern optimization tools and techniques to better maximize net retail revenues while fulfilling statutory service obligations.

Ruth Goldway, Chairman of the PRC explained: “The Commission was unanimous in expressing its concern that the Postal Service’s plan did not and could not, because of lack of data and analysis, determine the facilities most likely to serve the greatest number, reduce the greatest costs, or enhance the potential for growth or stability in the system. We agree that the Postal Service access network should be right-sized but found that the RAOI was not the proper approach to meet that goal.”

The Commission was unable to develop reliable cost savings estimates because the Postal Service does not collect facility-specific revenue and cost data, or separate retail costs from other operational costs. The Commission found that such data should be available for use in comprehensive facility closing plans.

The Commission review also included examination of an updated Postal Service process to evaluate facilities for closure. While acknowledging significant improvements, the Commission identified methods for enhancing the process to ensure meaningful public participation.

Specifically, the Commission recommends that training for local managers responsible for implementing the process include: (1) the statutory requirements applicable when evaluating a retail postal facility for closure, (2) more robust processes for obtaining and evaluating relevant community information, and (3) information on how other Postal Service initiatives may impact service in the affected area.

A core concern of the Commission is the question of suitable alternative access. Many current alternatives offer only a limited array of services, such as stamp sales and post office boxes. The Commission believes that alternative access for sites being closed must be presently available, viable and an adequate substitute for existing access.

“More than 160 appeals of decisions to close individual post offices, not related to the RAOI, have come before the Commission recently. In each case, we have seen how concerned local communities have been with losing access. With real, practical alternatives available, these communities would be far less likely to feel the loss of a neighborhood post office and would join with the Postal Service in the move to efficient alternatives,” commented Chairman Goldway.

Video: People crowd Michigan post office in last-minute shipping rush

From WEYI TV, Clio, Michigan

CLIO — Last-minute shoppers turned into last-minute shippers Thursday – the last day they could use Express Mail with guaranteed arrival before Christmas Day.

Postal clerks say it’s no surprise some people waited till now. Gary O’Boyle, a window clerk at the Clio post office, blames hard times. “The economy is a big part of it. They don’t have the money this year, so they’re watching their pennies.”

This is usually the boost the U.S. Postal Service looks forward to every year – that crunch time before the holidays, when people pay extra bucks to expedite their mail – though O’Boyle said this year wasn’t as busy as years past.

Read more: People crowd local post office in last-minute shipping rush : News : miNBCnews.com.

Video: Letter carrier defies Santa Claus ban

The Bellevue, Washington carrier who was ordered to stop dressing as Santa Claus defied those instructions on Monday, much to the delight of his customers:

USPS about face on in home delivery dates?

Late last month, the USPS told mailers it would no longer honor “In-Home Delivery Dates” on bulk mailings. According to Postcom, though, it’s changed its mind:

Been usin’ “In-Home Date” delivery notifications? Thought you couldn’t anymore? Think again. The Postmaster General did and he’s given mailers the okay to use the in-home date delivery request as in the past. . . . By the way, if you REALLY want to get delivery on a specific in-home date, use your head . Be sure you prepare and enter your mail EXACTLY where and when it’s necessary to receive delivery on that day in accordance with USPS service delivery standards. . . . And one final caveat. The Postal Service is NOT in the business of storing your mail. If you enter your mail earlier than necessary, then you’ll be getting delivery earlier than requested. Again . . . use your head.

via PostCom: Postal News and Information from Around the World.

USPS open Christmas Eve and New Year’s Eve

WASHINGTON — All Post Offices nationwide will be open Christmas Eve, Saturday, Dec. 24, and New Year’s Eve, Saturday, Dec. 31. Most will have shortened retail lobby hours and will close at noon. Mail delivery for Dec. 24 and Dec. 31 will be the same as any other Saturday.

Each Post Office will post its revised hours of operation for these two days. Commercial customers should check with their Business Mail Entry Units for Dec. 24 and Dec. 31 hours of operation.

Customers are encouraged to go online to usps.com or to call 800-ASK-USPS for information about specific Post Offices. In addition, mail should be deposited in blue collection mailboxes before noon for early pickup on Dec. 24 and Dec. 31. Customers requiring postal services later that day are encouraged to contact their local Postmaster.

In observance of the holidays, Post Offices will be closed Monday, Dec. 26, and Monday Jan. 2. Only Express Mail will be delivered on Christmas Day and New Year’s Day in most major metro areas. Post Offices will resume regular business hours on Tuesday, Dec. 27 and Tuesday, Jan. 3.