Mail Will Cost Us More

Cited: MSNBC

The U. S. Postal Service always seems to be in a fiscal bind and things aren’t looking any better for the cash-strapped mail service. In order to stay afloat, the Postal Service says that it will be raising rates for delivery of its more profitable express mail and priority mail shipping later this month. It is hoped that these measures will help them to keep from having to go into bankruptcy.

The new prices will go into effect on January 22, 2012 and will be applied to overnight express mail boxes; $39.95 for up to 70 lbs., and express letters $18.95. Spokesmen for the postal service say that rates for priority mail will also be raised by approximately 3.1 percent.

The post office is taking the measures in order to stay solvent while still being competitive with other shipping businesses such as FedEx and UPS, which also adjust their rates from time to time.

The fiscal outlook for the Postal Service isn’t getting any better with losses last year at $5.1 billion due to a drop in revenue of almost 5.8%, and the rate hikes probably won’t do much to get their books in order. The new rates are part of a plan that has seen prices for shipping at the Postal Service rise by some 5% and come as part of earlier hikes to first class mail of 1-cent to 45 cents.

Head of the Postal Service, Postmaster General Patrick Donahoe says that the post office will be faced with dire financial consequences next September unless Washington acts to give them greater ability to close offices, reduce delivery to five days, raise the price of stamps, and to cut health care and labor costs.

Lawmakers point to measures already taken by the Congress to help the Postal Service, such as bills that will give them more authority and liquidity to keep them out of bankruptcy, but Donahoe says that these measures don’t go far enough.

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My take:

The Postal Service always seems to be in financial trouble and you have to wonder why it isn’t just taken over by a completely private service. I don’t understand the rules governing the agency but there has to be a better way to financial solvency than just to keep screwing postal workers, who are already underpaid and have terrible benefits.

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