The U.S. Postal Service (USPS) is continuing its efforts to
return to profitability after posting a net loss of $2.1 billion
for its second quarter, and plans to pursue “aggressive management actions and legislative and regulatory reforms,”
the agency said in May.
The USPS reported total revenue of $17.5 billion for the
second quarter of its fiscal year 2019 (covering the period
from Jan. 1 to March 31) for a slight decrease of $8 million,
or “essentially flat,” compared to the same quarter last year,
USPS said. Meanwhile, the postal service’s operating expenses rose 4.0 percent over the same period last year, rising by
$751 million to reach $19.6 billion for the quarter.
Some of that imbalance was driven by the ongoing shift in
its traffic mix, including the decline in letter volumes and an
uptick in e-commerce-driven parcel traffic, which produces
lower margins than first-class or marketing mail because
it’s costlier for the USPS to handle. “We continue to face
challenges from the ongoing migration of mail to electronic
alternatives, and we are legally limited under current law
in how we can price our products and streamline our legacy costs,” USPS Chief Financial Officer and Executive Vice
President Joseph Corbett said in a release.
In the most recent quarter, USPS saw its first-class mail
revenue drop by $217 million, or 3. 3 percent, and its marketing-mail revenue sink by $155 million, or 3. 9 percent. By
contrast, revenue for its “Shipping and Packages” segment
rose by $253 million, or 4. 9 percent, compared with the same
quarter last year. Despite the continuing drop in first-class
and marketing-mail revenue, letters and circulars are still by
far the most common items delivered by the USPS.
The Port of Vancouver USA has reported record-break-ing cargo tonnage for the fifth year in a row, with
2018 coming in at 8. 1 million metric tons. This marks
an 8.3-percent increase over last year’s record of 7. 5
million metric tons. … GlobalTranz Enterprises Inc., a
technology and third-party logistics solutions company,
has acquired Circle 8 Logistics, a provider of third-party multimodal transportation and logistics services
throughout North America. … To accommodate its
growing customer base, Penske Truck Leasing has relocated its Dubuque, Iowa, operations to a newly built
9,600-square-foot facility that offers full-service truck
leasing, consumer and commercial truck rental, contract
truck fleet maintenance, and connected fleet solutions.
short takes
Postal woes continue as USPS racks up
$2.1 billion loss in Q2
