United States Postal Service

Data recently issued by ShipMatrix, a subsidiary of Pittsburgh-based SJ Consulting showed that data from on-time performance (OTP) ranges, for week 50 of 2021 for major parcel carriers, including UPS, FedEx, and the United States Postal Service (USPS), was in similar range as previous weeks leading up to it that were comprised of Thanksgiving and Cyber Monday.

Data recently issued by ShipMatrix, a subsidiary of Pittsburgh-based SJ Consulting showed varied on-time performance (OTP) ranges, for weeks 47 through 49 of 2021 and including Thanksgiving and Cyber Monday, from November 14-December 4), for major parcel carriers, including UPS, FedEx, and the United States Postal Service (USPS).

This data is based on millions of packages shipped via UPS, FedEx, and USPS.

The Postal Regulatory Commission (PRC), a concern responsible for oversight of the United States Postal Service (USPS), including oversight of rates and services, and ensuring the Postal Service meets all of its legal requirements, recently approved proposed temporary price adjustments for key USPS package products for the 2021 peak holiday season.

USPS officials said that this temporary price adjustment is in line with what it did in 2020, in anticipation of what it called heightened peak season package and shipping demand that often brings about extra handling costs.

USPS had a quarterly net loss of $3.0 billion, steeper than a $2.2 billion loss for the same quarter a year ago, with this year’s net loss reflecting revaluations and the effects of non-cash workers’ compensation adjustments. While it had another quarter of net losses, total quarterly operating revenue—at roughly $18.5 billion—was up $845 million, or 4.8%, annually.

USPS had a net loss of $82 million for the quarter, down significantly from a net loss of around $4.5 billion a year ago at this time, with the USPS saying that a pandemic surge in demand did not offset increased operating costs and a decline in mail services revenue, its largest category. And total quarterly revenue—at around $18.9 billion—headed up roughly 1.1%, or 6%, annually.

Earlier this week, the United States Postal Service (USPS) rolled out various network infrastructure investments, as part of its recently announced 10-year plan focused on achieving financial sustainability and service excellence, in order to meet customer and business needs, in advance of the 2021 holiday season.

The plan, entitled “Delivering for America,” takes an ambitious approach focused on helping the USPS get on solid financial footing, as the organization has been in the red over the last 14 years and incurred a net loss of $9.2 billion in the last fiscal year.

Total first quarter net income—at $318 million—was well ahead of a $748 million net income loss, for the same period a year ago. And total operating revenue—at $21.495 billion—topped the $19.351 billion from a year ago.

USPS officials said that should the PRC’s Postal Service Governors sign off on these proposed rate increases, the percentage increases, for certain USPS product segments would increase to varying degrees, including Shipping Services product prices up roughly 3.5% for Priority Mail service and 1.2% for Priority Mail Express service.

A recurring narrative related to the United States Postal Service (USPS) over the last several quarters pertains to how even though the organization continues to fight an uphill battle, as evidenced by ongoing steep quarterly losses, its Shipping and Packages Group continues to see increases. That was evident in its fiscal year 2020 results.

USPS officials said that these price adjustments, in the form of rate increases “are in response to increased expenses and heightened demand for online shopping package volume due to the coronavirus pandemic and expected holiday e-commerce.”

With the $10 billion loan to the USPS secured, the USPS today issued a statement, laying out the terms in which it will provide the United States Department of the Treasury with specific information regarding the organization’s costs, revenues, and overall financial position, which includes providing Treasury, under strict terms of confidentiality, with those contracts that generate the most revenue for the Postal Service.

Quarterly revenue—at $17.8 billion—headed up $348 million on an annual basis. But, despite the revenue gain, volume declined, falling 2.3% to 34,013 total pieces, and total operating expenses—at $22.3 billion—were up$2.8 billion, or 14.2%.