Postal Service Reports First Drop in Packages in Nearly a Decade

The Wall Street Journal reports that the US Postal Service is reporting the first drop in package volume in nine years as competitors deliver more packages themselves, rather than handing them off to the USPS for the “last mile”.

The Postal Service said it delivered 3.2% fewer packages for the quarter ended June 30. Revenue from packages rose 4.8%, however, from a combination of higher prices and growth among package options like Priority Mail and First-Class Packages. Those options typically provide more revenue than the service that the delivery companies are pulling out, because they traverse the entire postal network instead of just the final stretch of a package’s trip to your doorstep.

The Postal Service will likely lose more packages in coming months. FedEx has said it intends to shift all of the 2 million daily packages it passes on to the Postal Service for “last-mile delivery” into its Ground network next year.

Source: Postal Service Reports First Drop in Packages in Nearly a Decade – WSJ

  • QuestionU

    You conveniently forgot to mention that UPS plans to give USPS a good share of its small parcel “last mile” delivery to speedily accomplish it’s (USPS copycat) goal of 7-day/week delivery, especially on Sundays.

  • Bill

    The USPS will be just fine without delivering FedEx’s last mile packages. I firmly believe Postal reform is coming and when it does USPS will return to its glory days. The USPS is far more reliable than UPS or FedEX. They’re just bogged down with the retirement pre-refunding mandate congress has placed on them. Once removed the USPS will be unstoppable. No one does logistics better than the USPS.