The USPS will process and deliver 13 billion pieces of mail and 800 million packages to American homes between Thanksgiving and Christmas, the USPS Postmaster General Megan Brennan told postal employees.
She noted that the holiday window is 6 days shorter than last year but said, “We are well prepared for the upcoming holiday season.” The USPS will expand its network capacity by expanding air and surface transportation. It will also add package sortation capabilities, flex its delivery window, and will hire seasonal workers.
In her video message, Brennan pointed to Sunday delivery, calling the Postal Service the pioneer and market leader. “We will continue to expand Sunday and next-day delivery.”
She said online shopping would continue to increase and customer expectations would continue to evolve. “We are offering expanded shipping solutions to meet the changing needs of our business and residential customers.”
Brennan also talked about the “economic distortions” of international mail, saying the Postal Service had worked with the administration and the Department of State to negotiate fair rates. “The Postal Service will set its own rates for international inbound letter post packets beginning in July 2020.”
“Operators from other countries will transition to self-declared rates on that product at phased levels over the next six years.”
The Postmaster General also referenced competitors, ostensibly Amazon, when she discussed developments in the Postal Service’s package business:
“We compete for business every day. All aspects of our business are subject to competition.
“I’d like to focus on some developments in our package business. Despite intense competition for package volumes, we continue to see positive revenue increases in our Shipping and Packages category, which represented roughly a third of our revenue for the year.
“Competitive pricing, timely and accurate scanning, realtime visibility, and on-time deliver for the sender and receiver are core to our success.
“Some of our customers have been diverting volumes from our network by in-sourcing the last-mil delivery. They are also aggressively pricing their products and services in order to fill their networks and grow package density.
“This has an impact on our short-term volumes. This is a serious headwind.
“Know that we’re always adapting our competitive posture to counter emerging developments, such as driving innovation in our products and services, exploring opportunities with new customers, and expanding our relationships with existing customers.”
You can find the Postmaster General’s video on the USPS website.
