U.S. post has $2.2 billion loss, warns of Sept insolvency

Source: Reuters

The U.S. Postal Service posted a $2.2 billion net loss in its second quarter and said it might be unable to pay its debts by September.

The agency, which has been battling falling mail volumes and competition from FedEx (FDX.N) and United Parcel Service (UPS.N), said it expects to hit its borrowing limit by the September 30 end of the fiscal year, and will have to default on payments to the federal government unless Congress intervenes.

"The Postal Service continues to seek changes in the law to enable a more flexible and sustainable business model," said Chief Executive Patrick Donahoe in a statement.

Read more: http://www.reuters.com/article/2011/05/10/us-postalservice-earnings-idUSTRE74976P20110510?feedType=RSS&feedName=businessNews&dlvrit=56943

They need and stop the forcing of payment for FUTURE health obligations? This crisis goes back to the 2006 Postal Reform bill, designed to crush and privatize the service? That be a better question. Oh and yes that was Republicans.

that's what all the junk mail we get is about --

catalogues!!

If I recall correctly, PO had sent some of their own people to Bloomingdale's at

one point to assist with their mailings -- !!

Doubt we know the full particulars of the destruction --

Are we saying that the government couldn't compete with Fed Ex????

:rofl:

This is simply a push to privatize all mail --

fucking right wing private sector sons-of-bitches.

tangible proof to show this is a fact or is that merely your opinion?

same shit is going on in Public schools, unions, etc. Hell the right wing assholes get into government just to fuck it up so that americans look down upon it.

You don't lose 2 billion at the bottom with a mail carrier.

I'd really need proof.

so do you have anything other than opinion to back it up?

The decline in mail volume is part of the problem, but not nearly the majority of the issue.

One huge stumbling block is the USPS requirement to prefund the health benefits of its retirees. Another is its CSRS overpayment. Those two factors- absolutely intentional, to be sure; it's not possible to explain the effects of those two things without intent entering into the equation- are what is "harming" the USPS.

The reason I say that it's not possible to explain this away as simple neglect or incompetence on Congress' part is that the effects of those actions are simply too obvious. Just as you cannot unintentionally commit first-degree murder, so can you not order up legislation like that and then wonder where the money went.

Another huge problem is postal management, by which I mean the direct floor supervision up to the level of plant manager. These people, by and large, have little to no respect for their employees' experience, are harassing, hostile individuals who create problems just to have someone to yell at, are otherwise too incompetent, lazy, or just plain stupid to do the job they oversee, or all of the above. Good supervision and competent management are nearly nonexistent in the USPS.

During my time there, I have seen two things happen. One: persons experienced in any given section in the building are not offered promotions, are not offered management positions, and are often passed by as management material. Two: persons who have no experience in a given section, are poor or lazy workers, are utterly incompetent or just plain dumb are not only offered management positions, but in fact are pushed into them (one of our supervisors reportedly failed her interview for management five times over).

USPS has always been a fundamentally mismanaged organization, but it's gotten worse ever since the whole store got handed to the bean counters. Those assholes who only see the machine reports (often doctored) crunch the numbers and decide on policies that we on the workfloor cannot possibly follow completely (some policies regarding how we run our machines directly contradict each other), which further hampers the workers' efforts. We do our best, but when literally all of the operational decisions are being done by people who have literally never even once actually done the work they're overseeing, well... it's frankly a recipe for disaster.

that helped me come to the conclusion I came to, although I didn't bother to post about it. SHe told me how management was pressured to find folks to fire... she told me good workers have been fired and not because they did anything wrong. She felt it was by design.

They provide no real competition for Fed Ex while at the same time seem to

be giving special treatment to stores who provide eternal junk mail -- catalogues, etal --

Also -- I get endless duplicates and weekly mailings from non-profits -- they should be

limited to once a month -- especially because they are also contacting those interested

by e-mail!!

:nuke:

The world is moving to computers and the US post office has tens of thousands (hundreds of thousands) of trucks travelling around neighborhoods delivering mail six days a week.

If it was done twice a week, would anyone care?

Why does every government service need to show a profit. When is the last time we heard The Pentagon was insolvent?

I don't even see a rational need for paper mail. It's absurd.

just let them read cake?

And how about jobs? Post Office employees, catalog preparers, printers, greeting card companies, paper companies, envelope companies, and so on?

Maybe we could cut down gradually, but doing away with all that completely and abruptly is not what this economy needs.

And no, no one here is saying give the Pentagon more money, though I have no doubt someone will. As I'm sure you know, the point is, we are very selective about which agencies we expect to be totally self supporting and which we'll print money for until the country is beyond bankrupt.

We run an online business selling vintage jewelry, and we send and receive several packages a day. Pickup and delivery right off our front step, six days a week.

Rates:
USPS Flat Rate: up to 70 pounds in an 11x8-5/8x5 box; anywhere in the US.$10.95. Covers 100% of our business.
UPS Ground Delivery up to five days: 46 pounds, depending on zone, minimum $25.24, maximum $265.00
FedEx: Scheduled pickup by ground: maximum 20 pounds per box, so use two: minimum $154.28 x 2 = $308.00

Post Office goes, we're dead.

The USPS does not get money from the federal government to operate, except for emergency loans to operate. Ironically, they cannot raise rates without Congressional approval.

The internet is doing to the post office what it had done to newspapers -- killing them off. People use emails now and pay bills by the internet. My daily mail is about 1/3 of what it was 10 years ago, if that.

Too many post offices and too many people. As revenue has declined precipitously (despite huge price increases) the management has not taken the tough steps to keep the Postal Service solvent - figuring that Congress will bail them out - again.

our PO can deliver packages faster and better than anyone --

let's do it!!

Let's also end junk mail and deal strictly with first class mail --

get rid of those catalogues, as well -- all of that can go via e-mail.

And why do we have our PO delivering all this junk mail?

The USPS delivers six-days-a-week, right to your door. Everywhere in the country.

Fed Ex and UPS don't have that obligation. If they did, their prices would sky rocket just to break even.

Junk mail, letters, cards, PRESCRIPTIONS, magazines, packages, etc.

They deliver junk mail because businesses pay them to deliver it. Not sure if it is an effective form of advertising, but those who do believe so or they wouldn't pay to print and send it.

But disagree re "junk mail" -- and those catalogues!!

They're not paying enough to get this garbage delivered -- and besides that

people can go to the internet to see catalogues -- and/or to receive coupons, etal.

So -- whatever they're paying, it isn't worth the PO's time or energy.

We should concentrate on packages and first class mail -- that's all -- and compete

with Fed Ex!!

1. Remove junk mail rates: everybody pays the same rate (as in post #8 above).

2. Don't compete with FedEx and their ilk; USPS should do cheap reliable mail. Either compete with overnight services and put them out of business, or else stay out of that line. Since that line is mostly for deep-pocketed corporate customers, it's not really an appropriate service for USPS.

3. Yes, there has to be some shrinkage (as in #12 above), but lots of packages and snail mail will go at cheap rates, if the money stops being wasted on corporate-style publicity campaigns and expensive services. And, probably, big fat salaries for political appointees who don't do anything useful.

4. Bring back mail-by-rail for lower rates; seems like everything goes airmail now. For less money (and less pollution) seems like packages and letters that aren't in a rush could be delivered by rail and truck. People who are in a hurry will send electronically or by FedEx and their ilk anyway, so stop trying to grab that business and concentrate on slow, cheap and reliable.

Just my opinion.

quit subsidizing the airlines.

The (3-2 Republican) PRC voted to abolish sea mail under Bush.
This was pure corporate welfare.
The air carriers get the business at exorbitant rates.

While surface book rate shipping was abolished for small business and individuals, Amazon still gets surface shipping!
Unfair monopolistic practice.
It is clear that Amazon had a chat with the PRC lackeys before these rules were enacted.

the costs of mail to Canada which is not sea-borne ALSO went way up so they abolished truck carrying also to Canada and Mexico. This was very sneaky and pernicious. I have complained about it to my congressman and senator but no reply about it. Cost me biz too since some UK buyers, for instance, won't pay the air freight.

I publish five titles.
These books are of interest to people in Europe, especially England.
Without sea mail I lost 100% of my European sales.
Books are heavy and the air mail costs make business impossible.
Meanwhile USPS trucks pick up at Amazon for their special sea mail exemption.

That's the free enterprise, level playing field we hear so much about!

won't pay the huge mailing costs with one or two exceptions. But usually I was getting skinned on the shipping cost even up to Canada. I will have to keep up some pressure on my congressman who is a fairly progressive democrat but I need others to join in on this with their people.

The question for me, is, why don't they raise revenues and lower expenses?

It's still a better deal than paying $10, or so, to FedEx or UPS to mail a letter.

Deliver whatever I have to send. If they close them down, it'll be the great harm who don't have electronic mail.

Birthday cards?

Please see also Reply 29.

I needed to ship a 13" x 12" 9lb box from California to Indiana a few days ago.

Fedex put the box there in 4 days, for $16.20, and the package is automatically insured to $100. If it isn't there on time, I get my money back.

USPS Parcel Post will put in there in 5-9 days on average, for $15.27. The $100 insurance will cost me another $2.30, bringing my shipping cost to $17.57. There is no on-time guarantee, and they won't even initate a search for packages until 14 days after their sent-date. Transit times of up to 20 days are not unheard of at certain times of the year.

The USPS is only competitive if your item fits in their flat rate boxes. Those are a great deal, but the rest of their prices are too high for the lower level of service you receive. And their tracking system is still pretty primitive (though I did learn yesterday that it's not quite as bad as it used to be).

that with what the PO could actually do?

Everyone one of our government agencies has been co-opted by corporate interests

working to destroy them!!

From Dept of Education to EPA, from EPA to USDA -- and certainly the PO has been

being destroyed from within and above for decades!!

I bet!!

:evilgrin: