USPS lost $677 million in May: volume down 20% from prior year
TweetThe US Postal Service processed 2.8 billion fewer pieces of mail in the month of May than it did in the same time period a year ago. The steepest decline was in advertising mail, down 24%. First class mail was down 16%. The 19.9% decline in overall volume yielded a 15.3% decrease in revenue. Combined with a decrease in expenses of just 6.7%, the end result was a net loss of $677 million. That brings the fiscal year to date loss to $3.4 billion, putting the USPS on track lose around $6 billion by the time the fiscal year ends on September 30.
The loss comes despite unprecedented reductions in employee workhours. City carriers’ hours were down 10% from May 2008, while hours for “inside” staff at post offices and processing centers were down 16%.
It should be noted that the postal service is required by Congress to set aside $5.4 billion this fiscal year to “pre-fund” future retiree health benefits. No other business or agency is required to do this. That $5.4 billion is included in the expected $6 billion deficit. All of which means that despite the sharp decline in mail volume, the USPS would otherwise be seeing only a modest net loss this year, or even a profit if it weren’t for the “pre-funding” requirement. We’ve covered this congressional shell game in the past, and the Inspector General’s office has found that even if the pre-funding requirement is considered legitimate, the USPS is being overcharged by $3.3 billion a year- read their report here.
June 26th, 2009 12:16
OUCH !!!
June 26th, 2009 18:23
i say if the postal service wants to really save money they should cut the fat of the management. where i work at the phila. l+dc in so. jersey there are a overpaid mdo’s. and one mdo gave his lover a sdo overtime of over 40,000 dollars. he is still working there and so is she.the overtime is a big issue at the plant the employees do not come to work so the supervisors do not give the other employees any overtime so the mail does not get processed and the public does not get their packages isn’t that lovely? i am sure if the mangers in washington were cut by 50% that would save millions
June 28th, 2009 11:25
i say get rid of people the unions have protected for years…they don’t come to work and they don’t work when they’re at work – never seen anything like this company in my life!
the unions are gonna be the death of this company…check around…every union in this country has offere concessions from their workers so their company wouldn’t shut down
not the APWU or NALC – they ain’t givin up nuttin…they’re just gonna let this institution sink due to their stranglehold on management decisions and greed
June 29th, 2009 09:22
USPS needs to get rid of the thieves that they employ and be more like FedEx / UPS and insure at no charge up to $100.
I have had way to many parcels “get lost” in the USPS stream. And of course USPS takes no responsibility.
And the USPS wonders why they keep losing business.
June 30th, 2009 18:37
i agree with moe
July 9th, 2009 09:17
If the post office would stop raising the prices for shipping and measurement requirements to ship a package, they would be in a lot less financial trouble. They are so concerned about fewer people using stamps (so they say) that they are price gouging for package shipping. Everybody and their brother sells online now, and if it were more reasonable to ship, they would have more revenue. I have personally started to use UPS in most cases, and I’m sure others have too. They’re shooting themselves in the foot on this one!!
July 9th, 2009 17:41
USPS needs to get into Ocean shipping. The cost is way low.
Example: 64X16X16 box costs $600 to ship to Australia via FedEx. I do it via Ocean Container for $35.00 port to port. Yes it takes 8 weeks but at least it get there. A Australian would be happy to wait. Yes the Australian Post will not accept anything over 42 inches long but other parcel delivery company’s there would be happy to do it.
Australia is just one example. Got another box that ships for $30.00 to Nogales Az but to go across the border to Nogales Mexico it has to be via FedEx for $150 Something is wrong with this picture! I can state other problems.
Bottom line, international business is available & USPS needs to get it! USA needs the work!
July 10th, 2009 12:18
Please upermanagement inflates how much money we lost and everyone believes it . Management still to this day does not know how to count mail.They always under count so there is undertime.They put one person on the window so you wait for ever know wounder no one one want to go to the Post Office. The hole system sucks and Management is running it in to the ground. Management are the biggest liers i have ever met and the biggest thieves also. I don’t believe a word that comes out of Managements mouth nor should you.
August 20th, 2009 17:45
USPS needs to make changes to the services it offers to consumers instead of complaining about the internet technology taking business away. They should be looking on ways to offer consumers to make online payments either by utilizing the USPS website and/or personally making the payments at the post office. Currently there are a large number of people making payments online through a bank website, however not everyone has access to a bank account (checking or savings) and for the people with limited or no knowledge on paying online the option to go to the post office to make an electronic payment is a great choice. Today such services just started to be offer by check cashing companies and believed me they are making a bundle.
August 23rd, 2009 04:22
Oh Sher you just look like a Patsie for your comment
You must be a low level sup drinking LOLOLOLOL
August 23rd, 2009 04:26
Please I dont agree with moe!! Moe doesn’t agree with Moe. Moe agrees with “whatever makes moe get paid and not work” Am I right moe? U are a manager, used to be a craft employee? feel free to be honest
December 7th, 2009 07:05
“hello,
This is about online payment.There is a massive change underway in the mobile media market as it becomes unshackled from the operators’ portals that have dominated it for a decade, all without having made any significant inroads into the content use of mobile users. The new capped data packages, fuelled by further competition, will see a total revamp of the mobile media market. It will no longer be based on portals but on direct services by content and services providers via open source phones and mobile-friendly Internet-based services. The next step is the continued emergence of m-commerce and in particular m-payment services.Â
regards
hazz.hazz”