The Postal Service has achieved some savings from an emphasis on ground transportation over air transportation but an air cargo contract it entered in 2024 as part of that effort “is not aligned with volume trends and network changes,” an inspector general report has said.
The emphasis on ground transportation is part of the Delivering for America Program, which meanwhile extended first-class mail delivery standards by an additional one to two days to account for the time difference compared with air transportation. The air cargo contract, which extends into 2030, uses a per cubic foot pricing structure tied to average daily volume, in which the USPS guarantees an average volume per day, with higher rates applying if volumes fall above or below that level a certain percentage—the exact figures were redacted from the report.
“The Postal Service did not properly forecast declining package volumes or impacts of subsequent network changes when establishing the volume requirements of its new air cargo contract. As a result, the Postal Service made the decision to transport First-Class Mail and Marketing Mail by air to avoid paying premiums,” the report said.
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