Another proposed overhaul for the USPS Air Cargo World
The US Postal Service (USPS) is forecast to lose $238 billion by 2020 without “cuts across every aspect of our industry” announced US postmaster general John Potter.
Mail volume is projected to fall 37 percent from $177 billion in 2009 to $150 billion in 2020. Revenue from first class mail is expected to drop from 51 percent today to 35 percent in 2020.
Admitting there was no quick fix to the USPS, Potter added, “The crisis we’re facing gives us an historic opportunity to make changes that will lay the foundation for a leaner, more market responsive postal service that can thrive far into the future.”
Despite continued cost-cutting, the USPS anticipates a shortfall of $115 billion by 2020.
To address the projected loss, Potter suggested the USPS increase prices in 2011, restructure retiree health benefits payments, adjust delivery days, increase retail point-of-presence, price products based on demand and not the rate of inflation, and reorganize the workforce as more than 300,000 employees retire in the coming decade.
“Lifestyles and ways of doing business have changed dramatically in the last 40 years, but some of the laws that govern the postal service have not. These laws need to be modernized to reflect today’s economic and business challenges and the dramatic impact the Internet has had on American life,” Potter added.
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