US Postal Service Reports $4.9 Billion 2021 Net Loss

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WASHINGTON—The United States Postal Service (USPS) connected Wednesday reported a nett nonaccomplishment of $4.9 cardinal for the twelvemonth ending Sept. 30, narrowing its losses implicit the anterior year.

USPS’s operating revenue was $77 cardinal for the 2021 fund year, an summation of $3.9 billion, oregon 5.3 percent. It reported a 2020 nett nonaccomplishment of $9.2 billion.

Postmaster Louis DeJoy successful March announced a program to chopped $160 cardinal successful predicted losses implicit the adjacent decade. “We person years of inflicted harm to hole that volition necessitate america taking immoderate continued uncomfortable actions,” DeJoy said connected Wednesday.

USPS said shipping and packages gross accrued by $3.5 cardinal successful 2021, oregon 12.2 percent, mostly driven by the surge successful e-commerce resulting from grounds vacation volume.

First-class message volumes fell to 50.7 cardinal pieces successful 2021, the lowest number since 1971, and is down 51 percent since 2001.

USPS has struggled with mediocre transportation show implicit the past year, facing a immense boost successful packages and staffing issues owed to COVID-19, but DeJoy said the bureau was prepared for a engaged vacation season. “We are ready,” helium said.

Last month, the USPS implemented caller work standards that dilatory immoderate first-class message deliveries arsenic portion of efforts to trim reddish ink.

The caller standards revised one- to three-day work standards to 1 to 5 days, impacting astir 40 percent of first-class mail.

In precocious August, USPS raised prices of first-class stamps to 58 cents from 55 cents.

USPS has reported nett losses of astir $100 cardinal since 2007. That stems successful portion from 2006 authorities that required that the bureau pre-fund much than $120 cardinal successful retiree healthcare and pension liabilities, a request that labour unions person called an unfair load not shared by different businesses.

Congress is considering a program to supply USPS with $46 cardinal successful fiscal alleviation implicit 10 years, including eliminating the request that USPS pre-fund retiree wellness benefits for 75 years.

Congress is separately considering awarding USPS $6 cardinal to acquisition electrical transportation vehicles and EV infrastructure.

By David Shepardson

Reuters

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