Shipping and package revenue jumped 6.6 percent, compared with the same period last year. "I am hopeful that now that the elections are over, my colleagues and I can come together and pass postal reform legislation so that a final bill can be signed into law by the end of the year.". Last month, the post office said it will increase postage rates on Jan. 27, including a 1-cent increase in the cost of first-class mail, to 46 cents. Despite the red ink, the latest announcement showed an improvement from 2012 when USPS lost $15.9 billion that year. The rate increase is a temporary measure to mitigate the effects of the recession. JOHANNESBURG - The SA Post Office (Sapo) continues to bleed with the entity posting another financial loss of R978 million in the last financial year, however, showing a … The House, however, remains stalled over its own legislation that would allow for aggressive cuts, including an immediate end to Saturday delivery. In 2019, USPS made $514 million more in revenue than it did in its previous fiscal year, thanks to increases in postage rates and its package delivery business. Post Office Counters Ltd was created as a wholly owned subsidiary of the Post Office corporation in 1986. At which, PMG Potter testified that by the year 2020, the USPS cumulative losses could exceed $238 billion, and that mail volume could drop 15 percent from 2009. Earlier this year, the post office defaulted on two of the health prepayments for the first time in its history. The word processors and typists occupation is slated to lose 13,200 jobs by 2020, according to the Bureau of Labor Statistics. The Postal Service reported a net loss for the year of $2.7 billion, a decrease in net loss of $2.8 billion compared to 2016. Postal Service lost $8.8 billion in fiscal 2019, more than doubling its losses from the previous year. The agency also wants Congress to authorize it to limit door-to-door delivery and to cut Saturday mail delivery, but those plans have been blocked by some unions and lawmakers who say it would hurt their communities. Rural lawmakers are resisting action, worried about closures of postal facilities in their communities. A view shows U.S. postal service mail boxes at a post office in Encinitas, California, February 6, 2013. Post office losses widen to $5.6 billion this year - MarketWatch. After the Post Office statutory corporation was changed to a public company, Royal Mail Group, in 2001, Post Office Counters Ltd became Post Office Ltd. Today, the U.S. Postal Service is clearly marching toward a financial collapse of its own," said Sen. Tom Carper, D-Del., a sponsor of the Senate bill. On the plus side, the mail agency reported that its fast-growing shipping services, which include express and priority mail, grew by 9 percent, helping to offset much of the declining revenue from first-class mail. An increase in its shipping and package business helped the agency see a 2 percent rise from last year in its total operating revenues to $16.5 billion. Without legislative changes, it said, annual losses will exceed $21 billion by 2016. The U.S. This means the company's total losses for the year are likely to top Pounds 1.1bn when they are announced next week, despite better-than- expected operating losses thought to be Pounds 200m-Pounds 300m. Postal Service on Friday said its losses more than doubled to $4.5 billion in the quarter ending in March and warned the economic slowdown spurred by the spread of COVID-19 could severely hurt its finances over the next 18 months. But he said the mail agency has been hampered by congressional inaction on a postal overhaul bill that would allow it to eliminate Saturday mail delivery and reduce its $5 billion annual payment for future health benefits. Donahoe said the post office has been able to reduce costs significantly by boosting worker productivity. The rate increase, which is tied to the rate of overall inflation, will make only a small dent in financial losses. Last year was the worst for the High Street in more than 25 years as the coronavirus accelerated the move towards online shopping, analysts say. Expenses climbed to $81 billion, up from $70.6 billion, largely due to the health prepayments. The volume of its most profitable product, first-class mail, fell 1.4 percent as more people communicate electronically, but the temporary rate increase helped offset the losses by bringing a 3.2 percent rise in revenues for that product. Your California Privacy Rights/Privacy Policy. The postal service has lost money for 11 straight years, mostly because of pension and health care costs. In 2017, the service lost $800 million on $69.7 billion operating revenue. Today is National Voter Registration Day! The Postal Service also originally sought to close low-revenue post offices in rural areas to save money, but after public opposition, it is now moving forward with a new plan to keep 13,000 of them open with shorter operating hours. "It's critical that Congress do its part and pass comprehensive legislation before they adjourn this year to move the Postal Service further down the path toward financial health," said Postmaster General Patrick Donahoe, calling the situation "our own postal fiscal cliff.". The U.S. The net loss for the year, which was decreased by a $1.3 billion non-cash change in estimate, was $5 billion. We made it easy for you to exercise your right to vote! But that's not Amazon's fault. The Postal Service is the only government agency required to make such payments. Post Office branches, along with the Royal Mail delivery service, were formerly part of the General Post Office and after 1969, the Post Office corporation. The U.S. The financial losses for the fiscal year ending Sept. 30 were more than triple the $5.1 billion loss in the previous year. USPS and postal unions have so far failed to coax U.S. lawmakers to allow it to modify its business, including eliminating or modifying the future retirees' health fund. "Given the positive mail trends, it would be irresponsible to degrade services to Americans and their businesses, which would drive away mail - and revenue - and stop the postal turnaround in its tracks," Fredric Rolando, president of the National Association of Letter Carriers, said in a statement. USPS has focused on its shipping and package business and expanded to Sunday package delivery as more people shop online and need a service to deliver their purchases. ©2021 Verizon Media. "We are far short of liquidity," Corbett said. Fears for Post Office services hit by losses of Card Account footfall. The U.S. Much of the decline came in first-class mail. The post office also has been rocked by declining mail volume as people and businesses continue switching to email and other online options in place of letters and paper bills. But the agency also recorded a net loss of $8.8 billion, with 80 percent of that loss attributable to employees’ health-care … "To continue to provide world-class service and remain competitive, we must invest up to $10 billion to replace our aging vehicle fleet, purchase additional package-sorting equipment, and make necessary upgrades to our infrastructure," said USPS Chief Financial Officer and Executive Vice President Joseph Corbett. More On This Topic The financial losses for the fiscal year ending Sept. 30 were more than triple the $5.1 billion loss in the previous year. Jo carried out a factfinding mission on Post Offices in East Dunbartonshire earlier this year. The number of items mailed in the last year was 159.9 billion pieces, a 5 percent decrease. The Post Office has racked up $5.9 billion in losses already this fiscal year. Having reached its borrowing limit, the mail agency is operating with little cash on hand, putting it at risk in the event of an unexpectedly large downturn in the economy. "The U.S. The post also cites a Fortune story that details alarms raised by some officials about the health of the Postal Service. "If Congress fails to act, there could be postal slowdowns or shutdowns that would have catastrophic consequences for the 8 million private sector workers whose jobs depend on the mail," said Art Sackler, co-coordinator of the Coalition for a 21st Century Postal Service, a group representing the private sector mailing industry. Losses more than doubled at the US Postal Service in the first three months of the year to $1.3 billion. Tap here to turn on desktop notifications to get the news sent straight to you. Many in the industry point to these improvements as a sign that the agency does not need to make the drastic service cuts it has sought. The Postal Service projects the delivery of 15.5 billion cards, letters and packages from Thanksgiving to New Year's Eve—including a record 600 million packages. U.S. Post Office losses more than double to $8.8 billion for the year, while revenue rises - MarketWatch. Joseph Corbett, chief financial officer for the Postal Service, said the mail agency expects to operate for the first half of next year with about four days of cash reserves, a low amount which he described as unheard of for any well-run business. WASHINGTON (AP) — The struggling U.S. : Post office’s losses widen to $9 billion this year as election boost fails to offset drop in mail demand . Because of continued losses, the agency also said, it has not been able to update its fleet. Postal Service (USPS) released its financial report for the 2017 fiscal year in which its leadership detailed a greatly concerning loss of $2.7 billion. In all, campaign mailings and mail-in ballots helped bring in $500 million, a new high and roughly double the amount in the 2008 election year. Postal Service reported Friday that losses for fiscal 2020 widened to more than $9 billion even as revenue rose, given a drop in demand for mail services and … Under a … Many in the industry point to these improvements as a sign that the agency does not need to make the drastic service cuts it has sought. Savings from plant consolidations, restructuring hours at Post Offices, reductions in delivery units, and workforce optimization resulted in approximately $1 billion of savings in 2013. The U.S. The Post Office Lost $2 Billion In Just 3 Months. The net losses at the Postal Service grew by leaps and bounds in fiscal year 2019 according to the agency’s latest financial results. A post office that loses a few billion dollars a year is affordable for a country with a GDP of $20 trillion. Postal Service lost money in six out of the 10 years from 2001 through 2010, according to its financial reports. WASHINGTON, Aug 11 (Reuters) - The U.S. The Postal Service reported a loss of $2.7 billion for the fiscal year that ended Sept. 30. Postal Service continued to bleed money during its second quarter, despite an increase in package revenues and an emergency price hike that took effect in January. The jump in losses was largely due to a $1.5 billion increase in operating expenses as a result of workers compensation payments, the agency said. Part of HuffPost Business. The Senate passed a postal bill in April that would have provided financial relief in part by reducing the annual health payments and providing a multibillion-dollar cash infusion, basically a refund of overpayments the Postal Service made to a federal pension fund. But Rep. Darrell Isa, chairman of the House Oversight and Government Reform Committee and sponsor of the House bill, has said he believes postal legislation can be passed this year. Major defaults are unsettling," said Donahoe, who made clear that the Postal Service would now be profitable had Congress acted earlier this year. By the end of the decade, the semi-independent government agency's losses had reached a record $8.5 billion, forcing the Postal Service to consider seeking an increase in its $15 billion debt ceiling or face insolvency. Cash levels dipped perilously close to zero last month before bouncing higher due to a surge in election-related mail. Postal Service reported Thursday a fiscal 2019 net loss … Postal Service on Thursday reported an annual loss of a record $15.9 billion and forecast more red ink in 2013, capping a tumultuous year in which it was forced to default on billions in payments to avert bankruptcy. The post office lost $153 million last year and $276 million in 2018. Much of the red ink in 2012 was due to mounting mandatory costs for future retiree health benefits, which made up $11.1 billion of the losses. It remained unclear whether House leadership would take up the postal bill in its current lame-duck session. Of this decline in net loss, $2.4 billion was the result of changes in interest rates, outside of management's control, that reduced workers’ compensation expense compared to last year. The results marked the 13th consecutive year the mailing agency lost … ... lower than the previous year. USPS blames much of its financial troubles on a 2006 mandate to stow away billions of dollars for its future retirees' healthcare. Congress is focused now on a Jan. 1 deadline to avert across-the-board tax increases and spending cuts known as the "fiscal cliff.". The agency said on Monday that it lost $2 billion from April to June, compared with a net loss of $740 million in the same period last year, and a $1.9 billion loss in its first quarter. Overall, the post office had operating revenue of $65.2 billion in fiscal 2012, down $500 million from the previous year. "We cannot sustain large losses indefinitely. Donahoe said package volume also is expected to jump by 20 percent this holiday season compared to the same period last year, boosted by increased consumer purchases on e-Bay, Amazon.com and other Internet shopping sites. Investors, for instance, can expect parcel-shipping rates to rise further as the post office tries to limit losses by controlling what it can. Postal Service posted a $5.8 billion loss in fiscal 2016, bringing its 10-year cumulative total loss to $62.4 billion. The Postal Service, an independent agency, does not receive tax money for its day-to-day operations but is subject to congressional control. The U.S. The annual payment of roughly $5.6 billion had been deferred for a year in 2011, resulting in a double payment totaling $11.1 billion that became due this year. The Postal Service already defaulted on three of its payments into the fund and does not expect to make the next $5.7 billion installment due September 30. The cost of restructuring Consignia, the renamed Post Office, has doubled from earlier predictions of Pounds 400m to at least Pounds 800m. All rights reserved. Since 2007, losses have totaled more than $70 billion. Despite the red ink, the latest announcement showed an improvement from 2012 when USPS lost $15.9 billion that year. Posted by Ross Stalker | Updated 2006-10-16. While urging quick congressional action, the Postal Service acknowledged the uncertainty in its legal filings on Thursday, which anticipate that Congress will fail to act. Without that and other related labor expenses, the mail agency sustained an operating loss of $2.4 billion, lower than the previous year. The U.S. (Reporting by Elvina Nawaguna; Editing by Karey Van Hall and Jonathan Oatis). Sign up for membership to become a founding member and help shape HuffPost's next chapter. The losses followed combined pre-tax profits of $388 million in the period from 2014 to 2017. 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