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HomeDelivery, Logistics & FulfillmentPostal services, in an attempt to lower costs, slows down delivery

Postal services, in an attempt to lower costs, slows down delivery

The US Postal services will be slowing down the delivery of first-class packages. The decision is to reduce the overall transportation cost. It will be in effect from May 1, 2022.

The customers can expect a delay of a day or two in their package delivery. It will impact especially the one which is long distance. However, the package delivery time is not affected. Some of the products may get delivered the same day. The vision is to cut down the loss. The projected loss for the next decade is $160 billion.

Postmaster General Louis DeJoy devised the plan. First, he called out for slow delivery time. As a result, the shipping cost will go higher, but there will be more deliveries.

DeJoy states, “This action will contribute to our cost savings efforts and improve our reliability across all product classes, including our growing package market.”

As per the certain report, a slow delivery rate is good for postal services. Postal services can add more trains and trucks. This will increase the mobility of parcels. They will avoid using expensive air networks. There will be the elimination of reliability issues as well.

Though the plan received pushback from the Postal Regulatory Commission. It undermines the whole cost-saving program. It calls for a proposal that may not bring any changes in the financial condition.

The Postal Service failed to showcase any great achievement. There are still problems in reliability, efficiency, and economy.

There is also notification coming from a direct-to-consumer eCommerce firm. Finally, there is news coming about the partnership of ESW and UPS. ESW is a direct-to-consumer eCommerce firm. The collab will deliver international eCommerce and shipping.

The President of ESW calls it a one-stop solution. This will combine the ESW technology with deep localization expertise. UPS will come with expensive logistics and transportation networks. There is a clear understanding to offer better accessibility. It is going to be on a worldwide level.

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