USPS on brink of collapse?

[surfsidevintageauto]

As an ebay sellers, we are ALL dependent on USPS to deliver our shipments. I know I couldn't key going if I had to pay UPS or Fed Ex pricing on my shipments, it would my entire margin.  First off, I'd like to acknowledge our brave postal workers. As of today, 650 have come down with Covid19, and 19 have passed away.  I am truly grateful for their efforts.

I have been hearing the USPS will run out of money by June if the Federal government does not take action.  I have also heard that the President won't sign any Corona Virus Stimulus bill (CARES)  that included the 50 billion the USPS needs to key running.  He has repeatedly acted against the post office throughout his term.  Ever wonder why Chinese packages ship here so cheaply? Their post office is vigorously supported by their government, giving their vendors a competitive advantage.  Meanwhile our leaders want to shut our post office DOWN.  

WHAT GIVES?  HOW DO YOU ALL FEEL ABOUT THIS? You should be concerned.

[ed8108]

My position

Politicians need to cut unnecessary programs & wasteful spending, & put more taxpayer dollars into essential services.

[orangehound]

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@surfsidevintageauto wrote:

You should be concerned.

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I'm not.

The USPS loses billions of dollars most every year ... and this song is sung every year to Congress.  You've just not heard it before.  Here's a fun chart to give you a perspective:

[dkossy]

https://www.washingtonpost.com/business/2020/04/11/post-office-bailout-trump/

Yes, according to the above article Trump and the GOP want to privatize the USPS which would of course eliminate low prices such as media mail (which I depend on as a bookseller). It would also accomplish their goal of eliminating the possibility of vote-by-mail in November. I am very worried.

I would think large entities like ebay and Amazon would make an effort to lobby for the preservation of the USPS. But I'm not counting on it.

Donna K.

[honestguy11]

"Ever wonder why Chinese packages ship here so cheaply?"  Yes, it's because the UN requires the Postal Service to provide shipping from China at way below cost, because it has designated China as a "developing nation."  So to make up for the loss, the USPS has to raise rates for sellers in the US, so we are subsidizing shipments from our Chinese competitors.  Trump said he's going to put a stop to it, but I don't know if that has happened yet.

[oldwestgold]

Oh please, not another false post of the USPS collapsing.  They aren't going anywhere.

[oldwestgold]

Somebody has been trying to privatize the USPS for decades. And for the record, Trump has never stated he wants to privatize the USPS. The fact is nobody could handle what the USPS does. The USPS delivers in one day what UPS and FedEx deliver combined in one year. Even UPS admits they could not begin to handle the volume that the USPS handles. FedEx and UPS have been drop shipping to every post office every day in the country for decades because they can't handle their own volume. Please state your facts where you get your info on Trump and Republicans wanting to privatize them. It won't happen. Washington Post - there's your problem. Bogus news.

[stuff_from_dylan]

I wouldn't worry. We see people get worried over things that may change and guess what? They never happen! I'd say we should relax until it actually happens. I don't really think USPS will become private....they may just need to restructure some things in order for it to keep going.

[outdatedrecreated]

The United States Postal Service is a farce, and their complete inability to deliver packages right now has cost me over $200.00 in the last 6 days. There will be no tears shed when they are dissolved and completely forgotten about. I will NOT ship anything that is worth more than $20 using USPS and have not done so for over a year. the best decision I have ever made. The most useless organization in the history of the world and it's time to quit throwing them a lifeline until they can show some desire to improve. 

[buyselljack2016]

That dip correlates  well with the Congressional requirement to rapidly pre-fund Retiree Health care benefits well into the future at a cost of 50 billion dollars in 10 years, rather than like other federal agencies, and private sector, that operate on a pay-as-you-go basis..

[dkossy]

The article below (from 2018) clarifies that it was the 2006 congress (GOP led, of course) that passed legislation that effectively weakened the USPS financially for years to come, with the goal of killing it in order to bolster private entities UPS and FedEx. 

https://www.bloomberg.com/opinion/articles/2018-04-04/congress-not-amazon-messed-up-the-u-s-postal-s...

[buckleup2015]

I have personally only had good results using the USPS. My local PO is great and I thank the mail carriers profusely for being out there during this covid mess. I depend on them immensely.

That said, USPS as a whole is not solvent. "Junk mail" advertising, the mail that makes the most $$ for the Post Office, is way down. They lost money there.
Additionally, they have some deal with Scamazon to deliver their packages for a pittance...I see postal delivery vehicles out on Sundays delivering Amazon packages. That can't be cheap.
Lastly, every person who uses "free" packaging from the post office for things other than what their intended use is (using priority boxes to ship with cheaper services, as storage boxes for moving, storage of household personal items instead of bins...and on and on)  has contributed to the postal hemorrhage.
USPS might actually have to operate as an actual business to survive.  
Welcome to adulthood.

[buckleup2015]

Oh, and maybe the good part about all of it will be:
1. companies like Ebay/Amazon, etc...who claim ridiculous "guaranteed delivery" dates will have to stop that idiocy. I don't "guarantee" any delivery unless I physically take it there myself. Maybe if I owned my own shipping company, but not depending on others. Doo doo happens...as they say.
2. "free shipping" will hopefully be a thing of the past. There is no such thing. I love the holidays, when people go to ship their boxes of gifts to loved ones, and when the postal worker (or UPS/Fedex. etc...) tells them the "cheapest" way to ship, or the "fastest", they nearly have a stroke. Yes, people, that's what it costs to ship a package. Your "free shipping" is not free

 

[svhoneybee]

My hat does go off to the postal workers. A lot of issues are not getting reported. I live in Flint MI and all my mail is sorted through the Detroit area. right now as we speak my priority mail is being processed on time. First class is being delayed up to 5 days. parcel select is setting in piles. You have hundred of postal workers not showing up to work which is not being reported. (you can't blame them in that sense). If you see what is in their trucks now is all amazon, no junk mail, no reg mail. My driver does his route in 1/2 the time. Amazon does not pay what you and i pay. We subsidize them and others. The postal system is paying all their  employees with less reg paying people and more bulk paying. with extra costs of extra cleaning etc. They have to be going under. It should also be told in the Detroit area mail is only being delivered every other day. Expect things to get worse.  

[auroraflix]

I put a thread up about this but apparently 2 of the 3 major USPS processing plants in Michigan are closed, and they are funneling everything into the 1 that's still open. The postal worker who called me this morning said they have 80,000 mail pieces backlogged there (I was calling to find out why a Priority Mail package I shipped on 4/4 hadn't arrived to my buyer). 

My guess is they are way behind just 5 days in Detroit also -- I have a package I shipped on 3/30 still awaiting delivery there.