Wed. Jun 12th, 2024

US Postal Service spends more on ground transport as it shifts away from air cargo

March 17, 2023

READ FULL ARTICLE AT » Supply Chain Dive

  • The U.S. Postal Service increased its spending on trucks to move mail and packages between facilities as it shifted volume away from airplanes in fiscal year 2022, advancing one piece of its long-term transformation plan.
  • For the fiscal year ended Sept. 30, total transportation expenses increased 6.5% YoY, driven by a 12.8% jump in highway transportation costs, according to the agency’s 10-K. Air transportation expenses increased just 1.7% YoY and would have been lower if not for elevated jet fuel prices.
  • That trend continued in Q1 of fiscal year 2023, which ended Dec. 31, with the agency’s trucking expenses growth again outpacing that of air. For the year as a whole, the Postal Service expects to see a reduction in commercial air lift and an increase in surface transportation.
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