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Archive for Friday, March 25, 2011

5-day mail service wouldn’t save as much as predicted

March 25, 2011

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— The decision whether to cut back U.S. mail delivery to five from six days a week was complicated Thursday by a report that suggested the U.S. Postal Service had overstated the savings to be gained by the change.

The U.S. Postal Regulatory Commission on Thursday said it found only $1.7 billion in savings, compared with the Postal Service’s estimate of $3.1 billion. The commission also warned that the Postal Service had underestimated by as much as $386 million annually the loss of revenue that could come by dropping Saturday delivery.

The Postal Service, which anticipates operating at a $238 billion cumulative loss over the next decade, said last year it would pursue a five-day delivery schedule as soon as this year to cut costs. Congress currently mandates six-day delivery and would have to approve any changes.

The commission, which approves postal rates and operates independently of the Postal Service, made no recommendations about dropping a delivery day. Its members were evenly split over the proposal, said Ruth Goldway, the commission chairwoman, who supports maintaining a six-day service schedule.

She also warned that the Postal Service plan does nothing to address what she believes is an inequitable effect on delivery to rural and remote areas.

“It’s really going to be up to the Congress to say whether they think the service cuts and the impact on rural areas, and the questions about how you interpret the law, are enough of a concern to outweigh some of the savings,” Goldway said.

The Postal Service doesn’t receive taxpayer funding, so cuts don’t have an effect on the federal deficit or the national debt. However, the Postal Service anticipates losing $7 billion this fiscal year.

Comments

cyberchaos 3 years ago

I am A HCR driver for the USPS and i can tell you from my years of experience, . the mail i deliver to smaller towns in southeast kansas on saturday , are ads, flyers and third class magazines. the post office stations would still be open on saturdays, i will still deliver the bulk mail on saturdays, the in town and rural carriers would not. everyone deserves there mail, yes i agree, but cutting cost is sometimes a must. you would still get your saturday's mail, you would get it with your monday mail delivery (unless you have a post office box). the USPS is not the only company that has ever had to cut back. as the population gets larger, so does the amount of mail! that consist of more delivery drivers,fuel,dock workers.
with so many people choosing to use the internet e-mail system to correspond, it has cut the paper mail drastically. when a bulk carrier delivers one flat and half a letter tray to a small town, that dips into pockets. with fuel prices the way they are now, delivering that small amount of mail from a post office hub to a small town 33 miles away using a van that gets 15 miles to the gallon cost the USPS $6.98. that may not seem like alot, but now lets times that by 500,000 small towns 33 miles away from the hub, in a van that gets 15 miles to the gallon at 3.49 a gallon...........do your math. "The number of gallons of fuel used in 2009 was 444 million, at a cost of US $1.1 billion First-Class mail volume (which is protected by legal monopoly) has declined 29% from 1998 to 2008, due to the increasing use of email and the World Wide Web for correspondence and business transactions. Lower volume means lower revenues to support the fixed commitment to deliver to every address once a day, six days a week. In response, the USPS has increased productivity each year from 2000 to 2007,[ through increased automation, route re-optimization, and facility consolidation. Despite these efforts, the organization saw an $8.5 billion budget shortfall in 2010." this is fact, not my estimate. we load and deliver the mail in rain,sleet,blizzards,tornadoes,heat,floods and god knows anything else that comes along, we do it with pride. trust me the pay is not that good. but it is our job, just like you have a job you have to do. but we do this 6 days a week, like clockwork. we have been cussed out,spit on,bit,frostbit,rained on,loaded in blizzards and drove many miles in it,dodged tornadoes,hit deer,worked when the heat index was excessive enough to fry eggs....but when it is all said and done, at the end of the day, you come home from work, open your mailbox and guess what? your mail is there.

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BorderRat 3 years ago

I find it odd that with the USPS being a quasi-government run entity, most federal government departments send a great many items via Fed-Ex.

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