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Postal News Roundup

Postal News Roundup

ECommerce Bytes: eBay Creates Petition to Keep Postage Prices Low
“eBay is urging users to sign its petition requesting the Postal Regulatory Commission not to raise shipping costs. eBay sent an email this week to members of its Main Street grassroots lobbying program with the title, ‘eBay Says Keep USPS Prices Low.’ Why is the Postal Regulatory Commission reviewing postage rates? It's the law, as the USPS explained in a post this week. In the petition, eBay tells the PRC that the USPS is a ‘key package delivery service’ for eBay's top sellers, and says higher postage results in abandoned online shopping carts…”

ECommerce Bytes: USPS Explains the Postage Pricing Review
“The PRC is reviewing the system used to regulate Postal Service rates and classes. When PMG Megan J. Brennan testified this month about postal reform legislation, she discussed the importance of a 10-year pricing review being conducted by the Postal Regulatory Commission (PRC)… The goal is to determine if the current system is meeting its objectives, which include enabling USPS to be financially stable and ensuring the organization has adequate resources to offer high-quality services…”

ABC News: UPS tests out drone delivery service
“FORT MYERS - Keep your eyes to the sky because one more shipping giant is setting its sights on delivery by drone. UPS on Monday tested new drone delivery technology in Florida. Fort Myers is home to a large service center for UPS customers, and ABC7 wanted to know how residents feel about the new technology. Delivery via drone is already a reality for retailers like Amazon, but now UPS is jumping on the bandwagon and is close to perfecting the technology to get packages to your doorstep with a drone…”

Postal News Roundup

Postal News: Utilimaster pulls out of USPS Next Generation Delivery Vehicle Program as body builder
“Spartan Motors, Inc., a global leader in specialty chassis and vehicle design, manufacturing and assembly, today announced that its Spartan Fleet Vehicles and Services (FVS) business unit — which encompasses the Utilimaster go-to-market brand — has stopped development on the United States Postal Service (USPS) Next Generation Delivery Vehicle (NGDV) Program as a prime contractor in the functional prototype development project and has sought withdrawal from the USPS. Spartan is continuing efforts to support this project and will partner with a leading USPS prototype award participant, to provide interior cargo solutions specific for the USPS’s needs…”

Go Local Prov: Weiss: Overhauling Social Security & Medicare Gets ‘Thumbs Down’ in Recent Poll Findings
“Nancy Olumekor, Retiree Department American Postal Workers Union, came calling for Congressional support to improve Social Security and Medicare.  ‘Our members did not vote to destroy Social Security and Medicare to replace them with vouchers. Postal workers are opposed to increasing the eligibility age for Medicare and Social Security,’ she said.”

Postal News Roundup - Feb. 16, 2017

Baltimore Post Examiner: Labor leaders given World Peace Awards in D.C. Ceremony
“On Capitol Hill, on Tuesday afternoon two stalwarts of the cause of Organized Labor, John Sweeney and Elizabeth Powell, were awarded with the “Roving Ambassador for Peace” award. Sweeney is the President-Emeritus of the AFL-CIO and Ms. Powell is the Secretary-Treasurer of the American Postal Workers Union (APWU). The ceremony was held in the headquarters of the AFL-CIO, on the eighth floor, with a splendid view of the White House and Washington Monument in the background…”

Post and Parcel: OIG publishes report on international postal price regulation
“The US Postal Service (USPS) Office of Inspector General (OIG) has published a report which looks at how postal prices are regulated in Australia, Canada, France, Germany, and the United Kingdom. The report, which was produced for OIG by WIK-Consult, found that in all five countries ‘regulators revisited and modified price regulation to allow for greater pricing flexibility in response to changing market conditions.’ OIG commented: ‘Changes occurred in two ways — reduction in the scope of products covered by regulation and allowance of higher price increases on regulated products. Most recently, the changes have allowed price increases that are greater than inflation…’”

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…”

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