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USPS is Slowing First Class Packages to Reduce a More than 100 Billion Dollar Loss

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US – Some packages will arrive slower than usual after the USPS made a move to change the way they deliver mail.

According to a press release, on May 1, 2022, a third of its first-class packages will take a day or two longer to be received. This move is a way to reduce the more than 100 Billion dollars projected losses the mail carrier service is expected.

The slower delivery times will use more Trains and trucks as modes of transport versus air travel, which is more cost-effective and reliable.

Sixty-four percent of First-Class Package Service volume will be unaffected by the proposed standard changes. Four percent will be upgraded from a 3-day to 2-day service standard. For the remainder of the volume (32 percent), the service standard will increase by one or two days.

“Modifying select service standards is a key growth element and enabler of our 10-year plan. This action will contribute to our cost savings efforts and improve our reliability across all product classes, including our growing package market,” said Postmaster General and CEO Louis DeJoy. “By implementing the elements of our 10-year plan, we will deliver the consistent, reliable service that the American people and our customers expect and deserve and grow package volume, spurring revenue growth that can be invested back into the Postal Service.”

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Additionally, the Postal Service is removing an extra day for Priority Mail transported via ground. The extra day was temporarily put in place in April 2020 to account for ongoing global supply chain, transportation and employee availability challenges across our network posed by the COVID-19 pandemic. Given the continued high demand on the overall air network, the Postal Service is retaining the extra day at this time for Priority Mail transported via air until the reliability of our key providers improves.

With full implementation, the Postal Service’s 10-year plan aims to reverse a projected $160 billion in losses over the next 10 years. The Plan’s growth and efficiency initiatives will spur cash flow and savings to make $40 billion in capital investments over the next 10 years – including $20 billion towards the Postal Service’s mail and package processing network, facility upgrades and procurement of new processing equipment.