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Trump administration recommends postal reforms that could raise rates, setting up fight with Amazon
Source: The Hill
Trump administration recommends postal reforms that could raise rates, setting up fight with Amazon
BY JORDAN FABIAN - 12/04/18 03:00 PM EST
The Trump administration on Tuesday released a report that recommends the U.S. Postal Service (USPS) enact reforms that could raise shipping rates for certain packages, a move that could inflame tensions with Amazon and other online retailers.
The administration's USPS task force says the changes are needed to bring in more revenue for the cash-strapped Postal Service, which reported $3.9 billion in losses in fiscal year 2018.
“Although the USPS does have pricing flexibility within its package delivery segment, packages have not been priced with profitability in mind,” reads an executive summary of the report. “The USPS should have the authority to charge market-based prices for both mail and package items that are not deemed ‘essential services.’”
The report recommends that the USPS divide its mail and package shipments into essential and commercial service categories. Many e-commerce shipments would fall into the latter category, which would not be protected by existing price caps and thus be subject to rate increases.
Senior administration officials say the Postal Service would be able to change package rates without an act of Congress. But such a move would likely require re-working negotiated service agreements with Amazon and other companies.
-snip-
BY JORDAN FABIAN - 12/04/18 03:00 PM EST
The Trump administration on Tuesday released a report that recommends the U.S. Postal Service (USPS) enact reforms that could raise shipping rates for certain packages, a move that could inflame tensions with Amazon and other online retailers.
The administration's USPS task force says the changes are needed to bring in more revenue for the cash-strapped Postal Service, which reported $3.9 billion in losses in fiscal year 2018.
“Although the USPS does have pricing flexibility within its package delivery segment, packages have not been priced with profitability in mind,” reads an executive summary of the report. “The USPS should have the authority to charge market-based prices for both mail and package items that are not deemed ‘essential services.’”
The report recommends that the USPS divide its mail and package shipments into essential and commercial service categories. Many e-commerce shipments would fall into the latter category, which would not be protected by existing price caps and thus be subject to rate increases.
Senior administration officials say the Postal Service would be able to change package rates without an act of Congress. But such a move would likely require re-working negotiated service agreements with Amazon and other companies.
-snip-
Read more: https://thehill.com/homenews/administration/419695-trump-administration-recommends-postal-reforms-that-could-raise-rates
4 replies
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= new reply since forum marked as read
Seriously!
Boycott these greedy pigs at amazon.com.
THEY SUCK!
You know who will pay don't YOU. YOU WILL.
no sh*t, sherlock, the U.S. government is not a for-profit entity!
