As expected, the U.S. Postal Service reported a net loss of $2.8 billion for the year ended Sept. 30.
These results come just as the Postal Regulatory Commission is set to report to Congress on universal postal service and the mail monopoly (Direct, October).
“This is huge,” said Bob McLean, executive director of the Mailers Council, “because the report essentially will define what the postal service is supposed to be doing and what it's not supposed to be doing.”
He continued: “Universal service can be interpreted in a number of ways. Does it mean that every American gets mail? Probably everybody would agree on that. Does it mean we get mail six days a week? Or is it five? Or is it fewer than five?”
Postal management attributed these results to the national economic slowdown lowered mail volume and e additional costs mandated by the Postal Act of 2006, including the $5.6 billion payment required to pre-fund retiree health benefits.
The USPS posted revenue of $75 billion fiscal 2008, unchanged from last year.
The postal service attributed this to cost reductions, which it said offset nearly all of the effects from rising inflation, of which the major contributors were a $562 million increase in cost of living adjustments paid to craft employees and $525 million in additional fuel costs.
Mail volume in 2008 totaled 202.7 billion pieces, a 4.5% decline from the prior year, caused in part by declining mail volume, particularly in the financial and housing industries and the movement toward the use of electronic mail, the USPS said.
Separately, the USPS Board of Governors approved raising the prices of parcel shipping services by an average of 5% in January.
Specifically, prices will change rise on Sun., Jan. 18, for express mail, priority mail, parcel select, parcel return service and some international shipping products.
Price increases for standard and first class mail and other mailing services will be announced in February to take effect in May.
