US Postal Service to Slow Down Delivery of First-Class Packages

The U.S. Postal Service will be slowing delivery times for almost a third of first-class packages, as it attempts to lower costs and cut its reliance on air transportation, The Wall Street Journal reported Monday (April 18).

The service standards will go into effect May 1.

This will end up adding up to one or two days’ delays for some packages that are going longer distances.

Most package delivery times will not be affected — and some of them might arrive a day sooner. The delivery time changes are part of the plan to cut down on over $160 billion in projected losses for the next decade.

The plan was rolled out by Postmaster General Louis DeJoy last year — who called for slower delivery times, higher shipping rates and more deliveries overall.

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

The report noted that the slower delivery speeds will help the Postal Service add more trains and trucks to transport parcels, rather than using the more expensive air network, which it also said had more issues with reliability.

The plan has drawn skepticism from the Postal Regulatory Commission, which said last year that the cost savings might be overestimated and the proposal might not really affect the overall financial condition.

“At present, the Postal Service has not demonstrated that it can achieve reliability, efficiency, and economy in its service standard changes,” the federal watchdog said.

See also: eCommerce Firm ESW Launches Partnership with UPS

In other news related to package delivery services, PYMNTS wrote recently that ESW, a direct-to-consumer eCommerce firm, has partnered with UPS, which will provide integrated international eCommerce and shipping.

Patrick Bousquet-Chavanne, president and CEO of ESW in the Americas, said the ability to “get a one-stop solution that combines ESW’s technology and deep localization expertise with UPS’ expansive logistics and transportation network will give direct-to consumer retailers of any size greater access to consumers on a global scale.”