The Wall Street Journal says last week’s announcement of higher USPS priority mail rates is an indication that the agency isn’t looking to increase its small package volume unless it can make it profitable:
The U.S. Postal Service doesn’t look any more interested than the private package carriers in handling more cheap e-commerce shipments. The USPS is looking for a 9.5% increase for commercial-package shipping rates and double-digit hikes in its bread-and-butter business of shipping packages weighing less than a pound, the WSJ’s Laura Stevens reports. The request to the Postal Rate Commission marks a complete turnaround from last year, when the Postal Service slashed rates for high-volume Priority Mail shippers. The lightweight end is the biggest concern for the USPS since postal officials say they make only a penny on those residential deliveries. Commercial customers may be more worried over the long term that the Postal Service, long a sanctuary for low-cost shipping, is so tightly focused on its per-package profitability.