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USPS: $2.5B Net Loss, Parcel Volume Drop in Q2

May 11, 2023

READ FULL ARTICLE AT » Multichannel Merchant

The U.S. Postal Service reported a net loss that ballooned by $1.8 billion and a 5% decline in parcel volume for the second quarter, as the USPS faces the same ecommerce declines as other major carriers while wrestling with pain from a major network overhaul, union unrest and battles over its up-and-down EV adoption.

On a GAAP basis, the quarterly loss was $2.5 billion, compared to $639 million a year ago. The so-called controllable loss, when backing out unfunded liabilities and workers compensation costs, was $498 million, an improvement over $648 million in 2022.

Operating revenue for the USPS was $19.3 billion in Q2, down 2.4% from $484 million in 2022. Parcel shipping volume was 1.7 billion pieces, down from 1.8 billion pieces a year ago. First-class mail, which also includes some ecommerce activity, declined 8% to 11.9 billion pieces.

While revenue from parcel shipping decreased 2% to $7.6 billion, revenue from first-class mail ticked up a half percent to $6.3 billion, even with the volume drop. This was thanks to twice-yearly price increases approved in 2022 by the Postal Regulatory Commission (PRC)

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