The Postal Service will soon implement a new contractual approach with package consolidators, companies that enter large volumes of packages into various points in the USPS network.
The change is a result of the organization’s refreshed product offerings and improved operational and financial strategies.
Effective Jan. 1, USPS will no longer offer discounted rates through negotiated service agreements for packages entered by consolidators at Post Office delivery units.
This change will support the Postal Service’s business strategy to build its own ground package product — USPS Ground Advantage, a new offering that allows customers to ship packages in 2-5 business days across the contiguous United States.
“We will make agreements with consolidators who are willing to negotiate deals based upon a more rational use of our network in a fashion that is mutually beneficial,” said Postmaster General Louis DeJoy.
The Postal Service announced its new approach to contracts with package consolidators in September.
The organization’s decision to reevaluate its business relationships with package consolidators and to eliminate contractual price discounts for delivery unit entry is a crucial step toward long-term operational excellence and financial stability, two important components of the 10-year Delivering for America plan.
