USPS OIG – The International Package Market – Trends And Opportunities For The Postal Service
- The growth in international ecommerce is not translating into increases in international package volumes for the Postal Service. The Postal Service’s total international revenue for FY 2022 is at its lowest level in 18 years.
- Higher terminal dues and new customs data and sales tax have made the international postal channel more expensive and less convenient, while new international supply chain models and innovations in technology have exacerbated competition and facilitated the use of alternative commercial channels.
- A large part of the Postal Service’s foregone post-to-post international inbound package flows have become domestic volume, entered into the U.S. as bulk commercial shipments, and passed on to USPS and other domestic carriers for final delivery. Pandemic-related supply chain disruptions aggravated structural declines in outbound volumes.
- The Postal Service has been working on several measures to protect its international business. The USPS OIG suggests it further develop support services for smaller shippers, speed up efforts to combat counterfeit postage, and provide more clarity on the role the Postal Service intends to play in the international shipping arena now and in the future.