The Postal Service has announced a net loss of $586 million for the third quarter of 2015, typically the slowest time of year for the agency. The USPS reported a net loss of $2 billion for the same time last year.
Online shopping has helped boost package delivery for the Postal Service. Shipping and package revenue and volume increased by 10.6% and 13.4%, respectively from the same time in 2014. Also, in May, the USPS raised the price of certain classes of mail. These enhancements did not compensate for the ongoing decline of first class and standard mail.
The Postal Service’s financial health has been further impacted by mandatory increases in workers’ pay, benefits and transportation costs. Representatives of the USPS say the Postal Service needs continued growth of sales, improved productivity and Congress to pass postal reform legislation so that it can regain its financial strength.
The Postal Regulatory Commission (PRC) recently granted the Postal Service permission to collect $1.4 billion more from the exigent surcharge that went into effect in January 2014. Originally, the PRC allowed the USPS to collect $3.2 billion. The extension means USPS can recover $4.6 billion in revenue from the surcharge until mid-2016.