Posted on 03/04/2010 7:45:24 AM PST by SeekAndFind
“Because the mail never stops. It just keeps coming and coming and coming. There's never a letup, it's relentless. Every day it piles up more and more, but the more you get out, the more it keeps coming. And then the bar code reader breaks. And then it's Publisher's Clearinghouse day!”
-- Newman, on Seinfeld
---------------------------------------------------------------------------------------------------------------------------------------------------------------------
The mail never stops?
With an estimated 10 billion “piece” volume decrease for the United States Postal Service expected in 2010, Newman may have to start applying for a new gig.
Faced by overpowering competition in the private sector and feverishly amassing debt, the USPS yesterday announced its revamped plan to eliminate Saturday delivery, raise delivery prices, reduce national workforce by 30,000 people, and reduce overtime opportunities.
The decision by the USPS to reduce to a five-day delivery week is an attempt to prevent a repeat of 2009, when the government service recorded a $3.8 billion deficit. The Postal Service currently struggles with a $10 billion debt, and it’s legally allowed to borrow only $15 billion.
However, as the USPS’ troubles mount, shipping companies in the private sector are having no problem staying afloat. Despite the slowdown associated with the recession, private, non-government affiliated services FedEx (FDX) and United Parcel Service (UPS) still reaped celebratory profits last year. In 2009, FedEx saw total revenue of $35.5 billion and $98 million in profits while UPS made $45.3 billion in revenue and $2.2 billion in profits.
This success isn't entirely a result of the business decay of USPS -- FedEx and UPS are actually negatively affected by the putrefying mess USPS has become.
Companies like UPS and FedEx depend on USPS to deliver more than 400 million of their ground shipments every year. A true “I scratch your back, you scratch mine” scenario, the USPS returns the favor by contracting FedEx and UPS to deliver packages via air. With USPS suspending Saturday service, these private shippers will have to sail off route.
But they’re not the only ones who’ll be immediately affected by the change.
Many e-commerce businesses like Amazon (AMZN), Netflix (NFLX), and eBay (EBAY) that rely heavily on USPS ground distribution will be forced to consult with private carriers to negotiate a partner service. If the private carriers assume this role, the USPS will suffer immensely.
It’s not like the USPS ever had it easy. Regulations on how the USPS can charge and handle everyday business have long crippled its ability to make a steady profit. Up against the private carriers who can charge as they please, the USPS is faltered with this governmental handicap, making it nearly impossible for it to gain an edge on its competitors.
Yesterday the USPS revealed its 10-year plan to curb its estimated $238 billion cumulative shortfall by 2020. Postmaster General John Potter expects these latest actions will amount to around $120 billion in saving throughout the present decade.
Of course, these are just the latest efforts in a series of cutbacks by the USPS. According to the Washington Post, since 2002, the USPS has cut costs by $43 billion by reducing overtime limitations, shrinking workforce, and renegotiating contracts.The USPS hasn't received any taxpayer funds to support operations since 1982, and it's responsible for covering all of its costs.
With Potter’s new “10 year plan” on the table, hope seems to be restored -- for now.
However, it seems inevitable that the authority and presence of the USPS, with all its regulations and deficits, will eventually succumb to the power of the private sector. As technology and modernization has slowly eliminated the need for newspapers, magazines, and other classical businesses, the US mail system may be the next victim of the smother.
1. Decent pay plus good overtime
2. Great benefits
3. Insane pensions
4. They can do their routes in about 3 hours if they hurry. But they don't work for Fedex so why push it.
Unionizing the employees probably doesn’t help much either. I recently had to actually mail a letter, and so went to the local post office to do so (I didn’t have any stamps). First, the automated machine for buying stamps and package labels couldn’t sell me just the one stamp I needed, so I had to add to the tie-up by going through the line to mail it at the counter. So much for saving time. The line had about 20-25 people when I got in it, and 35 minutes later, there were still over 15 people ahead of me. There were two, and sometimes three, clerks at the counter, but it was taking them ridiculous amounts of time to process customers, as they seemed to be deliberately moving without any sense of urgency. I reflected that, had this been FedEx, I would have been able to mail my letter within 15 minutes of arriving, and the clerk would have been polite and efficient, because that’s what he would have been paid to do. If the USPS fails, it’s because they’ve ossified to the point where the customer and the mail they are transmitting are not the main reason that the employees are getting paid.
The private sector can never replace the USPS, and this article accidentally says why:
Companies like UPS and FedEx depend on USPS to deliver more than 400 million of their ground shipments every year.
Their chief competition needs them to do their job. UPS and FedEx could never handle the volume USPS handles, they can’t even truly handle the volume they have right now. He makes hay at the beginning about an expected 10 billion piece reduction, but ignores the fact that that still leaves an expected volume of over 190 billion pieces. Not to mention the problem with mailbox access, I don’t want a bunch of different companies sticking their hands in my mailbox.
It’s amazing how much we complain about the post office losing under 2 cents a parcel. It’s the government, it’s SUPPOSED to run in deficit, profitable governments are over taxing.
The day that I can walk into FedEx or UPS and hand them a one ounce letter and two quarters and not have them laugh me out of the building is the day I believe that USPS is doomed.
Let’s see FedEx or UPS make stops to every single residence in every single city every single business day, then tell me how efficient they are.
as Politicians and both parties make extensive use of direct mail for fundraising, don’t look for them to pull the plug on the USPS anytime soon.
Who was the genius who assigned them the task of processing passport applications?
[snicker]
That is part of the problem. There some days I receive nothing but unsolicited direct marketing junk.
Very little mail these days is truly time sensitive, most of mine would be fine if bundled and delivered once a week.
If they can't figure out a way to make direct marketers pay for themselves, then such mail shouldn't be allowed.
Most of what I receive goes straight to the recycling bin.
The package machines at the POs here will sell you 1 stamp of any value you want, prints it right up. Ugly little barcode things, but 1 stamp.
A lot of the delays at the post office is people that don’t know what they’re doing. I see a lot of people walk in with unsealed unaddressed boxes of stuff and the postal worker actually helps them get it all together. If people actually came in prepared they could cycle a 25 person line in 15 minutes.
At my Post Office they have to empty the trash by the boxes two times a day.
The machines at my PO only take credit/debit cards, and can’t do a transaction less than 1.00. Everyone in the line I was in was ready, but the clerks were incredibly lackadaisical in handling and processing everything.
Anyone who’s used UPS, has a cell phone, has used a fax machine, and send email knows why the post office is toast. But politicians are never going to figure it out because there are too many postal workers and retirees who vote.
I’ve bought 1 cent stamps from the automated postal center machines, and yes it only takes credit/debit. Sorry but spend too much time at the post office to buy that everybody in a 25 person line is ready, generally at best you’re looking at 2 out of every 10 that are actually ready to ship, and they’re in and out in under a minute.
Add in constantly changing shipping regulations that no one can figure out including the harried (and often snarky) clerks, who expect patrons to have them memorized, and you have a Titanic-sized mess.
Mine too. I get a few bills per month..and the rest is junk mail..which by the way, annoys me to no end. Even the companies you deal with, have to send you crapola.
My cable company sends me so much garbage, that I toss without opening, that I probably missed their letter telling me that some channels were dropped from my plan. I couldnt figure out why, I was getting this blue screen.
Anyway..I wont miss getting mail on saturdays..let them store the junk for a couple of days.
That said, it's time for the USPS to close. Losing too much and oput of date. We live in downtown oceanside, CA. 1 post offce 8 blocks from the other. Time to close one down.
I have been to places in the south where a post office is being kept open in a town of less than 300 people with another post office 5 miles down the road. Clsing a post office is as difficult politically as closing a military base. No one has the balls to pull the trigger.
Technology has mad many of the services outdated. Mostly, I'm getting ads and spam in the mail. All my bills are online or e-mailed to me. Shut it down or deliver two days a week.
If I want to send a letter or box I can do that with any other carrier. No need to keep the USPS open for that.
Just make an announcement. We're going out of business in 2014, July 1 and everyone will adjust. Employees would have time to retire or train for other jobs. Then sell the buildings or put other agencies in there to save money.
Let them raise the rates on junk mail. It isn’t handled as third class mail and they get cut rates. Make junk mail first class mail. Actually, make all mail the same and charge the same rates.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.