Friday , October 22 2021

Postal service red ink for the 12th year as letter mail drops


The US postal service on Wednesday reported an economic loss for the 12th straight year with citing drop in mail volume and the costs of its pension and health care obligations, as the agency braces for a forthcoming report commissioned by President Donald Trump to deal with his "unsustainable financial road. "

Post workers said they expected the next year's economy to be helped by a strong holiday package for package delivery and a just-approved increase to the price of its first-class stamp, from 50 cents to 55 cents. It will enter into force in January.

However, they asked for assistance from Congress to relieve postal service from hard health and pension advances and for help from regulatory agencies to give the agency greater flexibility to increase prices so that it can return to profitability.

"Remaining legislative and legislative changes, we can not generate enough revenue or cut enough costs to pay off our bills," says Postmaster General and CEO Megan J. Brennan.

"The wrong business model presented is still the reason for our financial instability." The postal service reported a loss of $ 3.9 billion for the fiscal year ending September 30, compared with a loss of 2.7 billion the year before.

A close to 7 percent increase in package delivery could not compensate for maturity in mail, which accounts for more than 70 percent of total revenues. First-class letter volume fell by approximately 2.1 billion, or 3.6 percent, because digital age people rely more on online payments.

Revenue was $ 70.7 billion, compared to $ 69.6 billion last year, but there were higher shipping and labor costs to deliver more packages.

Trump in recent months has claimed that Mail Service "loses a fortune" and reports annual losses because it does not charge higher shipping prices for online retailers like Amazon, whose founder Jeff Bezos owns The Washington Post.

In April, Trump issued an executive order requiring a review of postal services finances. The report, headed by the Ministry of Finance and originally due in August, is expected to be released in the next few weeks.

Trump has often noticed the post "false news" after the newspaper reported unfavorable development during his campaign and presidency and highlighted the Bezos accession by calling it the "Amazon Washington Post".

On Sunday, Rep. Adam Schiff, D-Calif, told the expected next chairman of the chamber's intelligence committee that Axios would try to investigate whether Trump tried to punish Bezos by pushing the post service to raise Amazon prices.

Package delivery has been a bright spot despite slowing down, and regulatory authorities have found their deal with Amazon to be profitable.

The post office, an independent agency, tries to stay financially liquid because it aims to invest billions in new trucks to get packages more nimbly to US homes.

Regulators this week approved the postal service's request to raise the price of its first-rate stamp by 5 cents. The 10 percent increase to the cost of sending a 1 o'clock letter is greatest since 1991. The price of each extra ounce will fall from 21 cents to 15 cents.

The interest rate increase will come into force on January 27th.

In order to be economically stable, the postal service has called on Congress to release the mandate to refine the pensioner's health benefits. The legislation in 2006 required the postal service to fund the 75-year value of retirees health benefits, which neither government nor private companies are obliged to do. It also seeks flexibility from regulatory authorities to increase the stamp rate over the inflation rate.

In order to prevent bankruptcy, the post office has lost millions of dollars every year since the year of multibillion dollar advances.

(This story has not been edited by the company's default personnel and is automatically generated from a syndicated feed.)

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