We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • ::COVID-19 COVERAGE::
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC.
    • Podcast
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Dispatches
      • Empowering Your Performance Edge
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC.
    • Podcast
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Dispatches
      • Empowering Your Performance Edge
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
Home » U.S. Postal Service reports $1.5 billion quarterly loss
newsworthy

U.S. Postal Service reports $1.5 billion quarterly loss

February 8, 2019
DC Velocity Staff
No Comments

The U.S. Postal Service (USPS) rang up a net loss of $1.5 billion during the first quarter of its 2019 fiscal year, blaming rising wage and transportation costs as it continued to exchange slumping first class mail revenues for rising parcel volumes.

The USPS said its revenue of $19.7 billion was up 2.9 percent over the same quarter last year, but that increase failed to keep up with rising operating expenses, which jumped 7.9 percent to $21.2 billion for the quarter.

USPS' rising costs came from three main sources, including increases of: $657 million in compensation and benefits, $621 million in workers' compensation due to changes in interest rates, and $207 million in transportation costs ascribed to higher fuel costs and highway contract rate inflation, the service said.

The agency's fiscal first quarter runs from October 1 to December 31, a period that was marked in 2018 by a tight capacity trucking market that sparked rising transportation costs for many shippers. Some reports have shown that trucking capacity may begin to ease in 2019, but the USPS will continue to suffer from the rising costs of handling parcels instead of letters. In past quarterly earnings reports, the USPS has pointed to that transition as one of the main causes of its financial woes.

While USPS revenue rose slightly over its most recent period, the components of that revenue continue to change swiftly as U.S. consumers transition from buying postage stamps to hitting "send" on digital emails, and follow the red-hot e-commerce trend of ordering parcels for home delivery.

"We continued to drive growth in our package business and expanded use of the marketing mail channel during the quarter. Nevertheless, we face ongoing financial challenges," Postmaster General and CEO Megan J. Brennan said in a release. "We remain focused on aggressive management of the business, legislative reform, and pricing system reform, all of which are necessary to put the Postal Service on firm financial footing."

Handling packages costs the USPS more than processing letters, eating into its profit margins despite the rising volumes. Over its first quarter, USPS first-class mail revenue declined by $81 million, or 1.2 percent, compared to the same period last year, while marketing mail revenue increased by $218 million, or 4.9 percent, and shipping and packages revenue increased by $516 million, or 8.7 percent.

By volume, the USPS handled 428 million pieces of first-class mail, 1.0 billion pieces of marketing mail, and 93 million packages in the quarter, the service said.

"Overall volumes increased this quarter driven primarily by growth in marketing mail and our package business, which resulted in total revenue growth of $553 million," USPS Chief Financial Officer and Executive Vice President Joseph Corbett said in a release. "This growth was offset by increased work hours and related salaries and benefits, increases in transportation costs due to these higher volumes and the continued focus on meeting customers' needs."

Transportation Last Mile
KEYWORDS U.S. Postal Service
  • Related Articles

    Postal Service delivers $2.3 billion loss for third quarter

    Postal Service posts $4.5 billion net loss for quarter preceding Covid-19

    Postal Service annual loss swells to $9.2 billion in year marked by pandemic and leadership change

Recent Articles by DC Velocity Staff

Global air cargo demand returned to pre-Covid levels in January

Descartes expands customs compliance toolkit with $36 million QuestaWeb acquisition

CMA/CGM to add LNG-powered ships to U.S. service

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Relaxed regulations for drone parcel delivery to take effect in March

  • IBM survey says digitalization trends will sweep trucking industry by 2030

  • Gartner survey signals increased investment in resilience over the next two years

  • Increasing Urgency for Vaccine Supplies Drives Launch of New Vaccine Manufacturing Resources on Thomasnet.com

  • What Level of Automation is Right for Your Warehouse?

Now Playing on DCV-TV

D92f0dd1 a98c 434a 9e17 30b63ee72c90

Automated Pack-out and Print-Apply System for thredUP

DCV-TV 4: Viewer Contributed
SilMan Industries designed and implemented a mixed polybag-carton system, including automated print and apply, in a new regional Fulfillment Center for thredUP, one of the world’s largest online resale platforms for women’s and kids’ apparel, shoes, and accessories. The Situation Secondhand clothing and online...

FEATURED WHITE PAPERS

  • Time to rethink your lift truck power

  • Warehouse Management System Project Toolkit

  • Solving Talent Management Challenges Now and In the Future

  • Shaping Up Last Mile Delivery to Surpass Customer Expectations

View More

Subscribe to DC Velocity Magazine

GET YOUR FREE SUBSCRIPTION
  • SUBSCRIBE
  • NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2021. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing