After announcing a $2.5 billion net loss for the third quarter of the year earlier this month, the US Postal Service revealed a plan to save money. This plan could make some mail delivery slower.
According to a press release from the USPS, the proposed operational changes are “designed to boost service reliability, cost efficiency, and overall productivity,” and should save the agency $30 billion over the next decade ($3 billion annually). Although the postal service is a government agency, it is financially independent.
In recent years, financial struggles have become harder for the service. During the third quarter of last year, it reported $1.7 billion in losses. That’s even as post offices have become overwhelmed with online shopping packages from sites like Amazon.
“Financial challenges like this are nothing new,” according to the Government Accountability Office last year. “The U.S. Postal Service (USPS) has long faced financial challenges that threaten its ability to deliver your mail and pay retirees’ benefits, as well as have broader effects on the mailing industry.”
Just last month, Audacy reported that USPS announced that stamps were going to become more expensive.
Changes proposed this week include: transitioning from 3-Digit to 3-Digit ZIP Code standards to more precise 5-Digit to 5-Digit ZIP Code standards, adjusting pick-up and drop-off times of volume between post offices and processing plants when the post offices are far away from the regional hubs, expanding daily reach for most classes of mail and packages, and “recognizing the significant volume reduction of Single-Piece First-Class Mail” and making long overdue” adjustments.
“Depending on location, time, and distance, expected time to deliver will increase for some ZIP code pairs,” said the release. According to CBS News, the changes are expected tp result “in some customers likely seeing a slowdown in their mail delivery,” and that it comes after the announcement of another plan that slowed delivery standards.
Along with announcing the proposed changes, the USPS also announced a Sept. 5 pre-filing conference to discuss the new plans. Following the conference, the postal service will consider comments and file a formal request asking for an advisory opinion from the Postal Regulatory Commission (PRC). Once it receives an advisory opinion from the PRC, the USPS will consider the Commission’s opinion and finalize its decision.
“As we integrate our transportation, processing, and delivery network to logically sequence the flow of mail and packages by deploying improved operating practices in our redesigned facilities network, we expect to improve service reliability, reduce cost and grow our business,” said Postmaster General Louis DeJoy.
If approved, the proposed changes would not initiate until after this year’s election and peak season.