To save $3 billion a year, the United States Postal Service (USPS) wants to make some big changes. USPS hopes to save $30 billion over the next ten years putting the postal service back on solid footing.
Proposed changes include the adjustment of pick-up and drop-off times and faster delivery of some classes of mail. Some rural customers may see slower delivery times.
The proposal would adjust mail delivery times while maintaining a commitment to a maximum of five-day delivery for the flagship Ground Advantage program nationwide and a maximum of three-day delivery for local first-class mail. Customers will also be able to track some delivery schedules with greater precision.
After announcing a $2.5 billion third-quarter loss, USPS says changes are necessary to make the postal service viable in the future.
The details of the proposed changes were revealed ahead of a Sept. 5 meeting where they will be discussed with stakeholders in advance of being submitted to the Postal Regulatory Commission.
Postmaster General Louis DeJoy said the changes are necessary to “enable us to operate more efficiently and reliably, grow our business, and give us a chance for a viable future” after an 80% drop in first-class mail since 1997 and a corresponding growth in packages.” USPS has accumulated more than $87 billion in losses from 2007 through 2020.
Election mail for November 2024 and holiday shipments in December 2024 won’t be affected as the proposed changes will not take place until 2025. Medications will continue to be delivered at their current speed, or faster, USPS officials said.
“Financial challenges like this are nothing new,” says the Government Accountability Office (GAO). “The U.S. Postal Service (USPS) has long faced financial challenges that threaten its ability to deliver your mail and pay retirees’ benefits, as well as have broader effects on the mailing industry.”
USPS says its proposal keeps with the organization’s mandate to be financially self-sufficient while continuing to deliver to every address across the nation six days a week. If adopted, 75% of first-class mail will see no change from the current service standards, and around two-thirds of mail will be delivered in three or fewer days, the Postal Service said.
Changes proposed include: transitioning from 3-Digit to 3-Digit ZIP Code standards to more precise 5-Digit to 5-Digit ZIP Code standards, adjusting pick-up and drop-off times of volume between post offices and processing plants when the post offices are far away from the regional hubs, expanding daily reach for most classes of mail and packages, and “recognizing the significant volume reduction of Single-Piece First-Class Mail” and making long overdue” adjustments.
Customers who live closer to regional hubs will see the greatest reductions in transit time for mail; while “transit times for some rural customers could grow while still falling within existing service standards”, a USPS official said.