USPS Headed for $1.8 Billion Loss This Year

Share this content:
WASHINGTON -- The U.S. Postal Service expects to lose $1.8 billion by the end of its fourth quarter, in part because of surprisingly weak Standard mail volume.


"We see very little growth in Standard mail volume [right now], [but] we are hoping to get it back up to the 3 percent growth level that it did last year," Richard J. Strasser Jr., USPS chief financial officer and executive vice president, said at yesterday's quarterly Mailers' Technical Advisory Committee meeting.


Strasser gave his final MTAC presentation before retiring April 3.


From Oct. 1 to Jan. 31, the USPS planned for a Standard mail increase of 4.7 percent; the actual increase, however, was 1.5 percent.


As for other mail classes, Priority Mail rose 7.5 percent; Express Mail, 5.5 percent; Package Services, 4.1 percent; and Periodicals saw no change. First-Class mail was the only category to drop in volume: down 1.6 percent.


Deliveries rose to 145 million in the period, up 2 million from the year-ago period.


"That translates into the fact that we are delivering less volume to more places," Strasser said.


Fuel costs, up 20 percent to 30 percent, are becoming a big concern for postal officials. The costs affect the agency's cost-of-living expenses.


"This year, we've had the largest increase in our COLA expenses," Strasser said. "Our costs this year were $800 million higher than they were last year."


Melissa Campanelli covers postal news, CRM and database marketing for DM News and DMNews.com. To keep up with the latest developments in these areas, subscribe to our daily and weekly e-mail newsletters by visiting www.dmnews.com/newsletters


Sign up to our newsletters

Company of the Week

We recently were named B2B Magazine's Direct Marketing Agency of the Year, and with good reason: We make real, measureable, positive change happen for our clients. A full-service agency founded in 1974, Bader Rutter expertly helps you get the right message to the right audience at the right time through the right channels. As we engage our clients' audiences along their journey, direct marketing (email, direct mail, phone, SMS) and behavioral marketing (SEM, retargeting, contextual) channels deliver information relevant to the needs of each stage. We are experts at implementing and leveraging marketing technologies such as CRM and marketing automation in order to synchronize sales and marketing communications. Our team of architects and activators plan, execute, measure and adjust in real time to ensure the strategy is working as needed and change things if it's not.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above