Postmaster General Louis DeJoy announced there would be no additional surcharges this peak season. “We are ready to handle any peak season volume in a superior and routine manner. That is why we will not be adding any additional surcharges for our customers this peak period.”
DeJoy made the remarks during a briefing on peak holiday-season preparedness on Tuesday morning, and in a press release issued after the meeting, he stated:
“Our 2022 peak season was a tremendous success. We are ready to deliver for the holidays in a superior and routine manner. We have been planning early and leveraging investments in our people, infrastructure, transportation and technology made possible by the Delivering for America plan. And with no holiday surcharges, we are strongly positioned to be America’s most affordable delivery provider this holiday season.”
The USPS charged peak surcharges in 2020, 2021, and 2022, and online sellers will likely welcome the relief the cessation of holiday surcharges will bring.
USPS Ground Advantage
USPS Chief Commerce and Business Solutions Officer Jacqueline Krage Strako said during the briefing that the new USPS Ground Advantage program was very well received.
“As a general proposition, we think holiday shippers will find that our Ground Advantage product matches up very well against our main competitors’ ground products.”
Competition was frequently cited during the presentation, and Strako pointed out that USPS Ground Advantage does not have holiday surcharges (“what our competition calls “demand fees””) and there are no residential, Saturday-delivery, or fuel surcharges. “And,” she said, “we will not cap volume for our customers.”
USPS executives also attributed the Delivering for America (DFA) plan for improvements in processing “firepower.”
USPS Operations and Scanning
Chief Retail and Delivery Officer Dr. Joshua Colin discussed operational improvements, including the USPS’s new package processing machines that allow it to move “packages of all shapes and sizes” more expeditiously to its plants. (Readers might take issue with that given the fact the USPS instituted steep surcharges for certain sized packages in 2022, including a $15 surcharge on packages over 30″.)
Dr. Colin also said the USPS would focus on delivering parcels between 6 am and 9 am during the holidays to reduce the number of parcel deliveries during normal operational hours.
“We have invested in and implemented hand scanning technology to provide greater visibility to our customers so they know when to expect their packages.”
The USPS will also have extended retail and pickup hours at a number of retail locations across the country during the peak season.
One reporter asked if the USPS expected holiday volume to exceed last year’s volume.
Postmaster General DeJoy said that would be a prediction he would not want to make, “but I pray for it, I’m hopeful,” he said. They’ve seen volume start to pick up after Priority and Ground Advantage improvements, he said.
Key USPS Investments Ahead of Peak
In Tuesday’s USPS press release, the Postal Service outlined the following key “Delivering for America” investments it had made ahead of 2023 peak season:
Hiring 10,000 Season Employees: The Postal Service has focused on its Delivering for America initiative to stabilize its workforce – converting over 150,000 pre-career workers into career positions since October 2020. Due to this success, USPS anticipates the need to hire only an additional 10,000 seasonal employees.
Utilizing 348 New Package Sorting Machines: These new machines are strategic investments in local community postal infrastructure enabling postal workers to sort and process packages of all sizes more quickly and reliably. To date, the Postal Service has installed 348 new package processing machines across the nation since the beginning of 2021. This includes 100 new sorting machines since last peak season. USPS will install an additional 47 new machines ahead of this holiday season. This is part of the organization’s $40 billion investment in new technology and facilities under Delivering for America.
Increased Daily Processing Capacity to Approximately 70 million: USPS has expanded its daily package processing capacity to approximately 70 million – an increase of approximately 10 million over last year’s capacity. Since 2020, the Postal Service has nearly tripled its daily package processing capacity. Increased package processing capacity allows for packages to move through the postal network more quickly and eliminates the need for the leasing of temporary annexes.
Moving 95% of Volume via More Reliable Ground Transportation: USPS has adapted its transportation and logistics processes to handle the high mail and package volumes expected during the peak holiday season. The Postal Service continues to move mail and package volume from expensive air transportation to its redesigned ground transportation network. Currently, 95 percent of First-Class Mail and more than 95 percent of First-Class packages are moved through the improved, more reliable ground transportation system.
New Shipping Solution – USPS Ground Advantage: This enhanced ground solution provides a simple, reliable, and more affordable way to ship packages this holiday season in just two-to-five business days across the continental United States. USPS Ground Advantage provides America’s businesses and the public with a compelling new ground shipping option that leverages the organization’s unparalleled last-mile delivery route system and improving mail and package postal logistics network.
The Board Room at eBay is out of tissues as all the executives cried when they found out they would not make the extra FVFs over the holiday season. Look for a Winter Update with increased fees.
Finally a break