First quarterly drop in USPS’ package, shipping volumes in nine years sends warning flares

In February 2017, the U.S. Postal Service (USPS) sent a warning about the outlook for its one consistently successful product. The multi-year growth of its shipping and package operations, USPS said in a government filing, could be jeopardized if the three customers responsible for most of the business – UPS Inc., (NYSE:UPS), FedEx Corp. (NYSE:FDX) and Amazon.com, Inc. (NASDAQ:AMZN) – continued to expand their own shipping capabilities and divert business from USPS.

Thirty months later, the prophecy may be nearing self-fulfillment. In its fiscal third quarter results released late last week, USPS said quarterly package and shipping volumes fell year-over-year for the first time in nine years. The decline was caused by the in-sourcing of USPS’ last-mile delivery service known as “Parcel Select,” in which private-sector partners ship and induct parcels deep into the postal infrastructure for inexpensive last-mile deliveries, USPS said. Parcel and shipping revenue rose year-on-year due to gains in Priority Mail and Parcel Post volumes, which USPS moves end-to-end and which typically generate higher revenue.


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USPS should be out of business for the good to customers. Everytime my package handles by USPS results in late, damage, wrong address, or lost.

Careful what you wish for.

Bull—-. We dont deliver late and we take it to the right place.