USPS defaults on prepayment for second time this year.
For the second time in two months, the U.S. Postal Service will not make a mandated payment to prefund retiree health benefits. Absent legislative action, the Postal Service is unable to make a scheduled $5.6 billion payment to the U.S. Treasury on Sept. 30. As was the case with the default of a similar $5.5 billion payment due August 1, customers can be confident in the continued regular operations of the Postal Service.
CPI figures reveals potential USPS price cap for January price change.
Using the August CPI figure, the Postal Service has available to it a price cap of 2.570. The price cap is applied to Market Dominant products at the class level. The Postal Service has five classes: First-Class, Standard, Periodicals, Package Services, and Extra Services. The Postal Service has pricing flexibility within the class to adjust prices that average at the class level to the 2.570 price cap.
USPS’ August figure shows more of the same.
The Postal Service published its unaudited August results with the Postal Regulatory Commission. USPS lost $956 million in August 2012. The Postal Service’s controllable operating loss for the month was $317 million.
- 3,000 mail handlers accept buyouts. USPS offers buyouts to clerks, others represented by APWU.
- Online holiday shopping will increase 17% this year.
- FedEx growth continues to rely on USPS.
- Registration for USPS’ Holiday Mobile Shopping Promotion opened on September 15.
- The effective date for the Folded Self-Mailers (FSM) revised standards is drawing near—January 5, 2013.