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Latest News and Highlights
USPS Enters into New Agreements with Package Consolidator Companies Consistent with its Delivering for America (DFA) Strategy On September 11 the Postal Service announced that it has been implementing a new strategic approach with respect to its contracts with package consolidator companies - ones that consolidate large volumes of packages for entry into various points of the USPS network. These contracts no longer reflect operational and financial realities in today’s market, the Postal network, or USPS’ refreshed product offerings. As a result, while the Postal Service has and will enter into new agreements with package consolidator companies consistent with its current business strategy, the Postal Service will no longer offer discounted rates through Negotiated Service Agreements (NSAs) for packages entered by consolidators at Post Office Delivery Units. An Alternative Approach to Ratemaking for USPS Market Dominant Mail The Association for Postal Commerce and the Greeting Card Association worked with NDP Analytics to commission the "Critique of USPS Elasticities" report conducted on USPS Price Elasticities. NDP just released a new report that expands upon the data and presents alternative approaches to ratemaking for market dominant mail. The report was published this week here. PostCom News Effective January 1, PostCom President and CEO Michael Plunkett has been named President and Executive Director of the American Catalog Mailers Association (ACMA). With the full support of the PostCom Board of Directors, Mike has taken on the dual role of running both organizations. PostCom and ACMA have a track record of collaborating on important postal and policy issues and our Board is convinced that this move will strengthen both organizations and provide opportunities for more effective and efficient advocacy on behalf of all our members. U.S. Postal Service Reports Third Quarter Fiscal Year 2024 Results On August 8, the U.S. Postal Service today announced its financial results for the third quarter of fiscal year 2024 (Apr. 1, 2024 - Jun. 30, 2024). The net loss for the quarter under generally accepted accounting principles (GAAP) totaled $2.5 billion, compared to a net loss of $1.7 billion for the same quarter last year. Total operating revenue was $18.8 billion for the quarter, an increase of $191 million, or 1.0 percent, compared to the same quarter last year. Revenue from Shipping and Packages, First-Class Mail and Marketing Mail all increased in the third quarter. Shipping and Packages revenue increased $182 million, or 2.4 percent, on a volume increase of 46 million pieces, or 2.7 percent, compared to the same quarter last year. White House Announces Governor Nominees On July 25, President Joe Biden announced his intent to nominate the following individuals to serve as leaders in his administration:
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