Get 40% Off
💰 Buffett reveals a $6.7B stake in Chubb. Copy the full portfolio for FREE with InvestingPro’s Stock Ideas toolCopy Portfolio

US senators urge Postal Service to pause delivery network consolidation

Published 05/08/2024, 12:51 PM
Updated 05/09/2024, 04:56 AM
© Reuters. FILE PHOTO: A United States Postal Service (USPS) mailbox is seen in Manhattan, New York City, U.S., May 9, 2022. REUTERS/Andrew Kelly/File Photo

By David Shepardson

(Reuters) -A bipartisan group of 26 senators on Wednesday urged the U.S. Postal Service to pause planned further consolidation to its processing and delivery network, warning it could slow mail deliveries.

The letter, seen by Reuters and led by Senator Gary Peters, who chairs the committee overseeing the USPS, urged a halt until the impacts are studied by the Postal Regulatory Commission. There has been mounting anger in Congress about changes that USPS has said are necessary to cut projected financial losses. 

The letter, also signed by Republicans Susan Collins, Roger Wicker and Shelley Moore Capito and Democrats Jon Tester, Debbie Stabenow, Jeanne Shaheen and others, said the USPS is making "irrevocable changes to its processing and delivery network," including "moving mail processing further away from local communities, by transferring operations out of local facilities" into more distant hubs.

The plan cuts the number of truck trips and mail collections at USPS facilities, "causing mail to sit overnight in local offices," the letter added, "causing critical delays for mail that requires overnight delivery."

The USPS did not immediately respond to a request for comment.

The USPS has been aggressively hiking stamp prices and is in the middle of a 10-year restructuring plan announced in 2021 that aims to eliminate $160 billion in predicted losses over the next decade. It previously forecast 2023 as a breakeven year.

The USPS in November reported a $6.5 billion net loss for the 12 months ending Sept. 30 as first-class mail fell to the lowest volume since 1968.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Last month, the Postal Service said it wants to raise the price of a first-class mail stamp to 73 cents from 68 cents, effective July 14.

In April 2022, President Joe Biden signed legislation providing the Postal Service with about $50 billion in financial relief over a decade.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.