The Busiest Mailing Day of 2016

Monday, December 19  was the busiest mailing day of 2016, when the USPS processed approximately 611 million cards, letters and packages.  The following Thursday is expected to be the busiest delivery day of the year.  Between Thanksgiving and Christmas the Postal Service estimates that it will process 16 billion items.

Bi-Partisan Support For Better USPS Service Performance

Twenty-seven Senators from both sides of the aisle have joined together in writing a letter to Senator McConnell and Senator Reid the Majority and Minority Leaders of the Senate respectively, as well as Senator Johnson, Chairman and Senator Carper, Ranking Member of the Homeland Security Committee, which has jurisdiction over the US Postal Service.   The letter…

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Senate Bill 3452, “Post Office Discontinuance Accountability Act of 2016”

On September 28, 2016, Senator Claire McCaskill (D-MO) introduced Senate Bill 3452 (“S. 3452”), titled the “Post Office Discontinuance Accountability Act of 2016.” The Bill is co-sponsored by Senator Jerry Moran (R-KS), and has been referred to the Senate Committee on Homeland Security and Governmental Affairs. The Bill has been introduced late in the legislative session and will die if it is not passed into law by January 3, 2017. However, it can in such a case be re-introduced in the new Congress next year.

The objective of the Bill is to establish procedures governing “emergency suspensions” of Post Offices by the USPS. Under the Bill, emergency suspensions are defined to be:

[t]emporary discontinuance of a post office without following discontinuance procedures for the post office, because of (1) a natural disaster, (2) the early, sudden, or unexpected termination of a lease or rental agreement by the lessor when suitable alternate quarters are not immediately available in the same community, (3) lack of qualified personnel to operate the post office, (4) severe or irreparable damage to or destruction of, the post office when suitable alternate quarters are not immediately available in the community, (5) a challenge to the sanctity of the mail, or (6) a lack of adequate measures to safeguard the post office or its revenues. [Italics added.]

It is significant that S. 3452 does not define the term “emergency suspension” to include the expiration of a long term lease at the end of its term, as such an expiration can clearly be anticipated by both the USPS and the lessor. Because the USPS has in the past attempted to establish regulations which would allow it to treat normal lease expiration as an emergency suspension, AUSPL has long argued that the term should be limited to situations which are true “emergencies,” using the plain meaning of the word. S. 3452 would clarify that question in a meaningful way for postal lessors.

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US Postal Service Announces Third Quarter Results

In August the US Postal Service announced third quarter results for the period ending 6-30-2016. Despite an operating revenue increase of $1.2 billion over the same quarter in 2015, there was a net loss of $1.6 billion.

Shipping and package volumes increased by $645 million or 18.1%. However, delivering a package involves considerable additional processing expense as compared to delivering First Class Mail. Those expenses include labor hours and transportation. According to the USPS’s Form 10-Q submitted to the Postal Regulatory Commission, “For 2015, Shipping and Packages revenues would have needed to increase by 260% in order to make up for the impact of the contribution provided by the volume losses of First-Class Mail for that year . . .”

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