Loss of Parcel Select business could hit USPS hard

The‌ ‌U.S.‌ ‌Postal‌ ‌Service‌ ‌(USPS)‌ ‌could‌ ‌experience‌ ‌a‌ ‌32%‌ ‌decline‌ ‌in‌ ‌total‌ ‌parcel‌ ‌volume‌ ‌and‌ ‌a‌ ‌20%‌ ‌drop‌ ‌in‌ ‌shipping‌ ‌and‌ ‌package‌ ‌revenue‌ ‌should‌ ‌three‌ ‌large‌ ‌customers‌ ‌take‌ ‌most,‌ ‌if‌ ‌not‌ ‌all,‌ ‌of‌ ‌their‌ ‌last-mile‌ ‌parcel‌ ‌delivery‌ ‌business‌ ‌in-house‌ ‌rather‌ ‌than‌ ‌outsourcing‌ ‌it‌ ‌to‌ ‌USPS‌ ‌as‌ ‌they‌ ‌have‌ ‌done‌ ‌for‌ ‌years,‌ ‌according‌ ‌to‌ ‌estimates‌ ‌from‌ ‌a‌ ‌prominent‌ ‌consultancy.‌ ‌ ‌

The‌ ‌estimates‌ ‌by‌ ‌ShipMatrix‌ ‌quantify‌ ‌the‌ ‌impact‌ ‌of‌ ‌steps‌ ‌being‌ ‌taken‌ ‌by‌ ‌Amazon.com.Inc.‌ ‌(NASDAQ:AMZN);‌ ‌UPS‌ ‌Inc.‌ ‌(NYSE:UPS)‌ ‌and‌ ‌FedEx‌ ‌Corp‌ ‌(NYSE:FDX)‌ ‌to‌ ‌divert‌ ‌last-mile‌ ‌parcels‌ ‌into‌ ‌their‌ ‌own‌ ‌networks,‌ ‌which‌ ‌are‌ ‌being‌ ‌vastly‌ ‌re-engineered‌ ‌in‌ ‌an‌ ‌effort‌ ‌to‌ ‌deliver‌ ‌last-mile‌ ‌parcels‌ ‌more‌ ‌cost-effectively‌ ‌than‌ ‌USPS‌ ‌can‌ ‌under‌ ‌its‌ ‌popular‌ ‌“Parcel‌ ‌Select”‌ ‌service,‌ ‌in‌ ‌which‌ ‌customers‌ ‌induct‌ ‌large‌ ‌parcel‌ ‌volumes‌ ‌deep in the USPS network for‌ ‌last-mile‌ ‌deliveries‌ ‌by‌ ‌letter‌ ‌carriers to residences and businesses.‌ ‌The‌ ‌objective‌ ‌of‌ ‌the‌ ‌three‌ ‌firms‌ ‌is‌ ‌to‌ ‌merge‌ ‌last-mile‌ ‌parcels‌ ‌with‌ ‌routes‌ ‌where‌ ‌their‌ ‌drivers‌ ‌are‌ ‌already‌ ‌making‌ ‌deliveries,‌ ‌thus‌ ‌building‌ ‌massive‌ ‌package‌ ‌density‌ ‌and‌ ‌driving‌ ‌down‌ ‌costs.‌ ‌The‌ ‌companies‌ ‌account‌ ‌for‌ ‌two-thirds‌ ‌of‌ ‌Parcel‌ ‌Select‌ ‌volume,‌ ‌according‌ ‌to‌ ‌ShipMatrix‌ ‌estimates.‌ ‌ ‌

USPS‌ ‌faces‌ ‌a‌ ‌problem‌ ‌on‌ ‌another‌ ‌front,‌ ‌according‌ ‌to‌ ‌ShipMatrix.‌ ‌FedEx‌ ‌and‌ ‌UPS‌ ‌have‌ ‌been‌ ‌aggressively‌ ‌targeting‌ ‌small‌ ‌to‌ ‌medium-sized‌ ‌shippers‌ ‌that‌ ‌are‌ ‌big‌ ‌users‌ ‌of‌ ‌USPS’‌ ‌Priority‌ ‌Mail‌ ‌two-‌ ‌to‌ ‌three-day‌ ‌delivery‌ ‌service.‌ ‌USPS‌ ‌stands‌ ‌to‌ ‌lose‌ ‌about‌ ‌10%‌ ‌of‌ ‌that‌ ‌volume‌ ‌due‌ ‌to‌ ‌diversion‌ ‌to‌ ‌rivals,‌ ‌according‌ ‌to‌ ‌ShipMatrix‌ ‌estimates.‌ ‌That‌ ‌would‌ ‌boost‌ ‌the‌ ‌total‌ ‌loss‌ ‌of‌ ‌parcel‌ ‌volume‌ ‌to‌ ‌34%‌ ‌and‌ ‌revenue‌ ‌to‌ ‌24%,‌ ‌it‌ ‌said.‌ ‌Priority‌ ‌Mail,‌ ‌which‌ ‌USPS‌ ‌handles‌ ‌from‌ ‌pick-up‌ ‌to‌ ‌delivery,‌ ‌generates‌ ‌four‌ ‌times‌ ‌the‌ ‌revenue‌ ‌per‌ ‌piece‌ ‌compared‌ ‌to‌ ‌Parcel‌ ‌Select.‌ ‌In‌ ‌its‌ ‌fiscal‌ ‌third‌ ‌quarter,‌ ‌the‌ ‌most‌ ‌recent,‌ ‌USPS‌ ‌generated‌ ‌about‌ ‌$2.38‌ ‌in‌ ‌revenue‌ ‌on‌ ‌each‌ ‌piece‌ ‌tendered‌ ‌under‌ ‌Parcel‌ ‌Select.‌

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PTL!!!! Maybe Rural Carriers will return to working actual evaluations instead of 12+ hour days!!!
How soon will these companies begin taking back last mile deliveries? The sooner the better!!

Thinking the dark and cold in upstate NY will keep a lot of under paid drivers off the routes. See amazon out past 7 PM in the dark its dangerous,, Part time for little pay does not last long. When none of the flex drivers show up , They will be screwed. Hope the PO can charge more in future to close that gap of parcels vs revenue. UPS already said they can not do it cheaper. Why must PO be the money loser to the richest company. Also get tired of hearing about loss of first class letter volume.… Read more »

I have no interest in USPS anymore, on August26th i mailed some documents from Tampa to Ft. Lauderdale and up until now it has not reached it’s destination. On September 13th i send another set of documents this time by registeted mail so i could track it. I was told that it would it’s destination on 16th, and i tracked it to somewhere in Ft. Lauderdale waiting to be scanned. I had to photo the same documents and send it Via FEDEX and it reached it’s destination in one day. So sad.

I drive a jeep. I am not able to carry all of these packages, sometime I cannot see out my rear window. We are not set up for this. Does the post office charge enough for the last mile out here in the sticks?? I do not get paid to drive up to there house either, when it does not fit in the mailbox. HELP