USPS Releases Third Quarter Financial Information

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USPS financial woes continue with an overall third quarter loss of approximately $2 billion.  These woes are expected to continue as the USPS is not expected to meet their $5.7 billion prefunding payment for retiree health benefits.

On Monday, a press release from the United States Postal Service stated that revenue from Shipping and Packaging Services increased 6.6 percent and Standard Mail rose 5.5 percent in the third quarter.  Postal increases initiated in January have contributed to a total revenue increase of $424 million this year.

“Revenue continues to improve as a result of the Postal Service’s January mail price increase, successful sales and marketing initiatives, and continued success in growing the package business. Total operating revenue of $16.5 billion increased by $327 million, or 2.0 percent, compared to the same period last year,” the release stated.

Despite overall increases in packaging and mail revenue, the USPS had a $2 billion loss in the third quarter.  Additional financial woes are still expected to hit the USPS late next month when the organization is expected to make a $5.7 billion prefunding payment for retiree health benefits.  In the press release, Chief Financial Officer and Executive Vice President Joseph Corbett stated that the USPS will be unable to make the payment by the expected date of September 30th.  Last April, we reported how this prefunding is affecting the USPS’ overall finances.

As a reminder, the price increase instated in January by the Postal Regulatory Commission is not expected to be permanent.  This specific increase was ruled as a surcharge until $3.2 billion in “incremental revenue” is collected.  This is predicted to happen in the second half of 2015.

As a reminder, the USPS reported a quarter two loss of $1.9 billion.  First-Class Mail declined 4.1 percent and Shipping and Packaging increased eight percent in quarter two.  Detailed financial information on the USPS is available here.  More information on the CPI-based price cap is available on the Postal Regulatory Commission’s website.

Global Mail Delivery Delays Update: August 7, 2014

World Map_standing imageHere are the current areas of the world that may be experiencing mail delays.

Source: International Delivery Solutions

China – On Aug 3rd, a 6.1 magnitude earthquake struck southwest China’ s Yunnan province.

Argentina – Unionized customs officials staged a two-day nationwide strike at Argentina’s borders and airports on July 31st to demand an increase in wages.

Libya – airport operations are closed for mail and parcels until further notice.

Liberia – Nigeria – Sierra Leone numerous airlines are suspending flights to these countries affected by the Ebola outbreak since Aug 4th — therefore, mail and parcel transport will be suspended.

Global Mail Delivery Delays Update: July 16, 2014

World Map_standing imageHere are the current areas of the world that may be experiencing mail delays.

Source: International Delivery Solutions

Corscia Island – French Post reports a strike at the Post office Ajaccio, Corsica island. Delays are expected for mail and parcels to post codes 20000 – 20090.

Israel – Since July 6th, escalating airstrikes and conflict will cause mail and transportations delays.

Cameroon – Transport workers on a nationwide strike  over rising fuel prices on July 7th.

Southern Japan – Week of July 7th, Super Typhoon Neoguri could be one of the strongest storms to hit the country in decades.

Philippines – bracing for Typhoon Rammasun expected to make landfall today, over 100,000 families in the Bicol region have been evacuated.

Canada Holiday — Civic  Holiday – August 4th – Canada Post will not deliver and all Postal Stations throughout the country will be closed.

USPS Proposes New Pricing for Priority Mail Customers

The USPS recently introduced a new website that encourages customers to utilize Priority Mail features available online.  Those who opt to utilize Priority Mail directly at post offices may see an increase this September.

The USPS recently introduced a new website that encourages customers to utilize Priority Mail features available online. Those who opt to utilize Priority Mail directly at post offices may see an increase this September.  Screenshot from usps.com.

Businesses looking for relief from increasing mail costs may see a small decrease in Commercial Priority Mail pricing this September.  Unfortunately, others purchasing Priority Mail services directly from the post office may be subjected to an increase.

The changes were proposed by the USPS on Tuesday in a notice  to the Postal Regulatory Commission (PRC).  Details are available in a press release on the USPS website.

In the release, Chief Marketing/Sales Officer Nagisa Manabe stated that the price decrease in Priority Mail for businesses is an attempt to attract and retain new customers.

The proposed decreases would have an impact on Commercial Plus and Commercial Base online shipping services.  According to the press release, Commercial Plus customers will save 2.3 percent and Commercial Base customers will save 0.9 percent.

The features of Priority Mail for business will remain the same.  These include tracking, insurance, a short delivery turnaround, and free package pickup.  Commercial Base Priority Mail does not have any volume requirements.  Those who use Commercial Plus Pricing are billed on shipping volume (around 50,000 pieces a year).

Increases for Priority Mail customers utilizing the service at post offices will average to 1.7 percent.  For customers wanting to utilize online shipping options, the USPS recently introduced a new online store that encourages users to print shipping labels, request a package pickup, etc.  More information on the store is available on the USPS website.

The PRC must approve the proposed Priority Mail pricing changes before they take effect this September.

Global Mail Delivery Delays Update: June 24, 2014

World Map_standing imageHere are the current areas of the world that may be experiencing mail delays.

Source: International Delivery Solutions

France – June 24th, French air traffic controllers launched a six-day strike, which caused hundreds of flight cancellations and major delays across the country. Expect mail and parcel delays.

Canada – Monday June 23rd St Jean Baptist Day (celebrated) in the Province of Quebec, expect postal delays in Quebec only.

Philippines – Philippines Post announced on June 19th that normal postal operations have resumed; however, due to construction of roads and some relocations postal delays are still expected.  This is due to last November’s typhoon.

Spain – June 19th the corontiaon of a new King in Madrid, expect some delays in delivery during that timeframe.

Indonesia – Indonesia Post announced on June 17th normal postal operations have been restored throughout country, they were fractured since February due to volcanic eruption.

Serbia – Updated on June 12th, all postal deliveries are still subject to delays in the following postcode areas: 11500, 11503, 11505 and 22248.

Canada Holiday — Canada Day – Tuesday July 1st – Canada Post will not deliver and all Postal Stations throughout the country will be closed.

Update on Mail Service to Ukraine

The USPS announced this week that Flag_of_Ukraine.svgmail service will resume to Ukraine for Global Express Guaranteed®.

Effective June 17, USPS starting accepting shipments to Crimea and Sevastopol in Ukraine using its Global Express Guaranteed (GXG) service. Other USPS international shipping options are still temporarily suspended.

In April, Ukrainian State Postal Enterprise (Ukrposhta) informed the Universal Postal Union that it had suspended delivery services for international mail addressed to Crimea (postal codes in the range 95000–99999).

 

Temporary Suspension of Mail Service to Ukraine

Flag_of_Ukraine.svgPer the continuing crisis in Ukraine, USPS service to the Crimea (postal codes 95000–98999) and Sevastopol (postal codes 99000-99999) has been temporarily suspended.See below for the official announcement on the USPS website.

Temporary Suspension of Mail Service to Certain Destinations in Ukraine 

Until further notice, all Post Office™ and other acceptance locations must not accept any mail destined to the Crimea (postal codes in the range 95000–99999), Ukraine. The temporary suspension affects Global Express Guaranteed® (GXG), Priority Mail Express International®, Priority Mail International®, and First-Class Mail International®, First-Class Package International Service™, International Priority Airmail™ (IPA®) International Surface Air Lift® (ISAL®), and M-Bag items.

For already deposited items addressed to these destinations, Postal Service employees must endorse them “Mail Service Temporarily Suspended — Return to Sender” and then place them in the mailstream for return.

For all returned items, upon request, the Postal Service will refund postage and fees on mail returned due to the temporary suspension of service.