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Postal News Roundup

USPS: U.S. Postal Service Reports Fiscal Year 2017 First Quarter Results
“Excluding the effects of a $1.7 billion change in its workers' compensation liability due to fluctuations in interest rates, the U.S. Postal Service posted a net loss of approximately $200 million for the first quarter of fiscal year 2017 (October 1, 2016 - December 31, 2016). Controllable income for the quarter was $522 million compared to $1.3 billion for the same period last year, a decrease of $735 million. Operating revenue decreased by $155 million, and was significantly impacted by the April 2016 expiration of the exigent surcharge. If the exigent surcharge had remained in place, the Postal Service would have generated approximately $570 million in additional revenue during the quarter…”

Federal News Radio: Postal Service reports $200M loss, despite increase in package delivery
“Despite double-digit growth in its package delivery during last year’s holiday season, the U.S. Postal Service posted a $200 million net loss for the first quarter of fiscal 2017. USPS reported $522 million in controllable income in what is usually its strongest quarter, but marks a significant decrease from the $1.3 billion in controllable income it posted in the same period for fiscal 2016. Postal officials attributed some of its losses to the reversal of the 2-cent exigent postal rate increase, which the Postal Regulatory Commission repealed in April 2016. USPS estimates it would have earned $570 million in additional revenue this quarter had the rate remained...”

Tribune Review: Postal Service wants to boost security of U.S.-bound packages 
“The Postal Service said Thursday it is committed to strengthening the security of mail from foreign countries. Former Pennsylvania Gov. Tom Ridge, the nation's first Homeland Security secretary, told the Tribune-Review this week that a loophole in federal law has helped create a pipeline for opioids to be shipped illegally to the United States. Ridge said the Postal Service and foreign postal services aren't required to include advance electronic security data with U.S.-bound packages as are private shippers such as FedEx and UPS. The data help authorities more effectively target packages with contraband such as drugs, he said. Washington lawmakers are expected to introduce legislation soon that would require the data on all items shipped to the United States…”

DC Velocity: USPS warns defection of three key customers could hurt package business
“The U.S. Postal Service warned today that the multi-year growth of its shipping and package operations could be jeopardized if the three customers responsible for most of the business continue to expand their shipping capabilities and divert business from USPS. USPS, which made the comments in a quarterly government filing that included its fiscal first-quarter results, did not identify the customers. However, they are believed to be Seattle-based Amazon.com Inc., Memphis-based FedEx Corp., and Atlanta-based UPS Inc. The three are big users of a USPS service known as "Parcel Select," where companies induct packages deep into the postal system for last-mile deliveries to residences…”