Posts tagged with: united states postal service

2amazonOn Monday, Amazon announced that it would immediately start offering Sunday deliveries. This new initiative will not only satisfy consumers who  do not want to wait all weekend for something to arrive, but it will also give the cash strapped U.S. Postal Service revenue as they will be making the Sunday deliveries.

This might be good news for the USPS and impatient consumers, but it effectively makes Sunday another weekday. Cecelia Kang, a reporter for the Washington Post, interviewed Acton Research Fellow Jordan Ballor for the story. He predicted that Amazon’s action will likely be copied by other large corporations:

Competitors such as Wal-Mart, eBay and Google are racing to satisfy consumers virtually around the clock, aiming to deliver products just hours after someone places an online order.

“Amazon’s announcement is another incremental development in the erosion of that restful space — Sunday — and another example of an erosion on the limits of market activity,” said Jordan J. Ballor, a research fellow at the Acton Institute for the Study of Religion and Liberty, an economic think tank.

Read “For the modern consumer, the week never seems to end” in the Washington Post. Also, See Ballor’s commentary about Blue Laws and Black Friday.

ups-freight-globalUPS CEO D. Scott Davis was asked in a recent BusinessWeek interview, “You talk a lot about trade, global trade. What is your company’s role?”

Here’s what Davis said (emphasis added):

We always consider ourselves an enabler of global commerce. The worst thing for this country and UPS, and for the world, is protectionism. The natural reaction in a recession is people look inward and say, “Let’s put up barriers.” That stifles economic growth for everybody. I’m on the president’s Export Council, and my job is to educate the public and Congress. We’ve got to have a country that exports. We need more trade agreements.

In a piece earlier this year in Comment magazine, I examined the relationship between “Trade and Mutual Aid.” As Martin Luther described interpersonal obligation in another context, “It remains, therefore, for us to render mutual service with our gifts, so that each with his own gift bears the burden and need of the other. Thus we shall fulfill the law of Christ.”

In the BW interview, Davis also addresses the nature of the relationship between UPS and the USPS, Amazon, and what it’s like shipping sharks.

No more credit card offers on Saturdays....

No more credit card offers on Saturdays….

Regarding the USPS decision Wednesday to stop Saturday mail delivery, Ron Nixon at the New York Times writes,

The post office said a five-day mail delivery schedule would begin in August and shave about $2 billion a year from its losses, which were $15.9 billion last year. The Postal Service would continue to deliver packages six days a week, and post offices would still be open on Saturdays. Reducing Saturday delivery is in line with mail services in several other industrialized countries like Australia, Canada and Sweden, which deliver five days a week.

This move has not come without opposition, however. Nixon continues,

Whether it will succeed is difficult to predict. Many lawmakers view the Postal Service as the quintessential government service that touches constituents almost every day, and rigidly oppose any changes. Also, postal worker unions hold sway over some lawmakers who are influential in writing legislation that governs the agency.

Again, he reports,

Most Americans support ending Saturday mail delivery. A New York Times/CBS News poll last year found that about 7 in 10 Americans said they would favor the change as a way to help the post office deal with billions of dollars in debt. The Obama administration also supports a five-day mail delivery schedule.

But three postal unions and some businesses on Wednesday called the move to five-day delivery misguided.

He goes on to note, “Many companies said ending Saturday delivery would have a devastating effect on their businesses.”

This sounds like a dire situation. Faced with “a requirement that it pay nearly $5.5 billion a year for health benefits to future retirees” and a 37% decline in first class mail since 2007, the postal service has ceased to be profitable as it stands, despite consistent yearly increases in the price of stamps. Small businesses may be threatened; Nixon reports that Ricardo Rolando, president of the National Association of Letter Carriers, has additionally claimed that stopping Saturday mail “would be be particularly harmful” to “rural communities, the elderly, the disabled and others”; shouldn’t something be done to fix this problem? (more…)

New postal rates went into effect yesterday, but the biggest impact of the new rates and policies hasn’t yet been felt.

A new set of policies governing the delivery of magazines through the mail has been postponed until July. That’s a bit of needed good news for small magazines that will face rather hefty price increases.

The increases have even got The Nation’s Katrina vanden Heuvel complaining that “the Postal Service is a monopoly.”

Maybe it’s time for magazines that can’t afford to meet the new rates without untenable price hikes or layoffs (or both) to consider alternative delivery methods.

One option would be to go to a completely digital format, like Salon or Slate.

Another might be to partner with groups other than the Postal Service that already deliver to customer’s doors. The latter might be local delivery people who contract for daily or weekly newspapers.

It might be in the interests of both parties to partner up or combine their delivery efforts, in the same way that papers like The Wall Street Journal or the New York Times are delivered nationally.

Perhaps the local newspapers could get a boost to their profits by charging a small fee to deliver the magazines along with their daily routes.

Update: Much more on the postage increase at the Logos blog.