Postal Service Considers Slower Delivery to Rural Areas to Improve Finances
ICARO Media Group
In an effort to address its financial troubles, the United States Postal Service (USPS) is considering implementing slower mail delivery in long-distance and rural areas. Postmaster General Louis DeJoy revealed plans to adjust delivery standards to prioritize faster service for customers within 50 miles of the largest USPS processing facilities. However, these changes would result in potential delays of an additional day for deliveries to far-flung areas, though mail would still be delivered within five days or less nationwide.
DeJoy emphasized that the USPS cannot afford to maintain the current delivery model for remote locations, citing the neglected state of the agency. He argued that some delay in mail arrival was a necessary trade-off to save the struggling Postal Service and highlighted that other countries experience longer delivery times and higher costs. Nevertheless, the proposed policy changes would only be implemented after the upcoming November elections.
To gather public feedback, the Postal Service has filed plans with its regulator to hold public hearings regarding the proposed changes. This move follows a wave of litigation four years ago when similar cost-cutting measures raised concerns about potential disruption to voting. However, in the 2020 elections, the USPS played a crucial role in facilitating mail-in voting, aiding nearly half of all voters in requesting or casting their ballots by mail, according to the University of Florida's U.S. Elections Project.
Under the proposed plans, the USPS would allow mail and packages to remain at certain facilities for an additional day before processing and delivery. This would extend the acceptable delivery times for mail traveling longer distances. The USPS has already piloted this approach in various predominantly rural areas over the past few months.
The new delivery standards would require approval from the agency's nine-member governing board and scrutiny from the Postal Regulatory Commission, although the latter's recommendations are nonbinding. It is important to note that the USPS continues to grapple with the aftermath of mail slowdowns during the 2020 election, which resulted from operational changes introduced by DeJoy and sparked significant public outcry.
Tammy Patrick, the head of the National Association of Election Officials, commended the Postal Service for its diligence in delivering ballots on time during previous elections. However, she expressed concerns about increased pressure on the agency to meet delivery standards when mail volumes surge in the final days before the election.
Recent data indicates that the USPS has struggled to meet delivery standards, with only 83.4 percent of first-class mail delivered on time during the week of August 12, falling short of the agency's 95 percent target. Nevertheless, the USPS has exceeded the target when allowing a one-day grace period for deliveries across the country, as per the agency's online data dashboard.
Experts suggest that allowing slightly slower service to rural areas, which often face challenges in meeting on-time delivery rates, could help improve the agency's delivery metrics. DeJoy and the board of governors have already adjusted the USPS's delivery goals in recent years, extending the target delivery period from three days to up to five days as part of a 10-year cost-cutting plan. Additionally, the USPS has raised the price of first-class postage by 33 percent over the past four years.
Critics, such as Representative Gerry Connolly, argue that any move to degrade service while raising prices could lead to a decline in USPS's viability. Connolly criticized DeJoy's proposed lower service standards, quipping that it was akin to reverting to delivering mail by "horse and buggy." Even the GOP-controlled House Appropriations Committee expressed concerns about the potential negative impacts on mail service and cost overruns resulting from DeJoy's 10-year plan.
Responding to critics, DeJoy defended the USPS's need to compete with private carriers like FedEx and UPS while striving to reduce costs. He argued that lawmakers lacked understanding of the postal business and the measures required to remain competitive.
Despite price and delivery changes, the Postal Service's financial situation remains unstable. It is projected to incur losses of over $7 billion in the 2024 fiscal year, with a $6.5 billion loss recorded in fiscal 2023. Congress has previously approved a $107 billion plan to stabilize the agency's balance sheet during the pandemic. However, the Postal Service's financial struggles persist, with its obligation to serve rural areas contributing significantly to its financial woes. Private competitors, such as FedEx, UPS, and Amazon, often exploit this mandatory service to avoid delivering to unprofitable locations, further burdening the USPS with less lucrative routes.
As concerns regarding potential declines in mail agency business arise due to slowing delivery service, stakeholders urge the Postal Service to strike a delicate balance between cost-cutting measures and maintaining satisfactory customer satisfaction levels.
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