Postal rate will probably increase during holiday shopping season
President Donald Trump’s administration moves to raise rates of the United States Postal Service for delivering packages.
According to ABC News, the Trump administration released a report suggesting several financial challenges that the US Postal Service (USPS) is facing. As a result, it has been suggested that the USPS needs more flexibility in settling rates over the holiday shopping season.
President Trump created a Treasury Department Task Force back in April this year to review the financial situation after he personally made claims for rate increases, targeting large online retail store such as Amazon.
Last year on December 29, Trump tweeted that the US Post Office should charge much more as it was losing “billions a dollars a year” while charging online stores Amazon “so little” to deliver their packages.
Follow us on Twitter to learn more.
As per the 74-page report, just “a singular fix” with Amazon alone will not solve the financial struggles of the USPS, especially with the competitors like UPS and FedEx dominating the shipping market.
You're saying...the Post Office...is...losing intelligence? So, the USPS, an independent government agency that millions of people rely on, is... decreasing, in its... intelligence? The Post Office, is getting dumber. This is a real thing the PRESIDENT said. Don't normalize this.— Rob Sheridan (@rob_sheridan) December 29, 2017
The report further suggests, “The benefits of the USPS monopolies continue to diminish,” according to the report. “The USPS must pursue price increases, reduce service costs, or exit the business line for any class of mail that falls outside of the determined essential services and that does not cover attributable costs.”
Amazon uses Fedex, UPS and USPS. Whichever is cheapest for the package and size. Without Amazon, the USPS would probably have more closures and the business would suffer.— Rick Howard Jr. 🇺🇸 (@rickhoward) January 3, 2018
However, it mentioned that policies would be put in place to ensure that small businesses that run from residential homes do not see the same cost increases as the online retail giants.
I'm a mailman we deliver for all other shipping companies. It's called the last mile,and we don't charge enough and for the last time we don't take tax payers $.— Todd Littelmann (@tlittelmann) January 1, 2018
The Trump administration’s review concluded that the USPS should be given the authority to charge market-based prices for both mail and package items that do not fall under “essential services.”
The report comes only a few days after Amazon released a press statement informing that it sold the largest number of products than any other day in its history during this year’s “Cyber Monday.” It also received orders for over two billion products with one day or faster delivery times.