USPS must win higher-value, heavier packages, CEO says

The U.S. Postal Service must pursue heavier, more profitable shipments in order to better compete with FedEx and UPS, Postmaster General and CEO David Steiner said during a U.S. House of Representatives subcommittee hearing Tuesday.
Steiner was asked how the Postal Service can stave off private competitors like FedEx and UPS to improve its financial outlook. While the agency’s ongoing network overhaul is a step in the right direction, it also needs to win over more customers with higher-value shipments, according to Steiner.
The Postal Service’s average package weight is about one to 1.2 pounds, while FedEx and UPS volume averages closer to five pounds, according to Steiner. “Our network was designed for lower-weight packages. We need to move that up. We need to go after those higher-value packages.”