WASHINGTON, DC – This morning, President Trump took to Twitter to voice concerns about the United States Postal Service.
He wrote, “Why is the United States Post Office, which is losing many billions of dollars a year, while charging Amazon and others so little to deliver their packages, making Amazon richer and the Post Office dumber and poorer? Should be charging MUCH MORE!”
It is unclear if Amazon is the source of the Postal Service’s financial troubles because the details of any deals between the Postal Service and retail giant are confidential, and the financial troubles of the Postal Service are often attributed to the requirement that it pre-fund its employee’s health insurance benefits and to the decreasing volume of first-class mail.
According to a Forbes article, shipping industry analyst David Vernon “estimated…that Amazon pays the USPS $2 per package, which is about half of what it would pay United Parcel Service and FedEx.”
The Forbes article noted that Postal Service chief financial officer Joseph Corbett “wrote in a post for PostalReporter.com in August that the [Postal Service] is required by law to charge retailers at least enough to cover its delivery costs.”
In 2013, the Postal Service made an agreement with Amazon to deliver packages on Sundays. The Postal Service also provides “last-mile” delivery for the retailer.
The Postal Service offered no comment in response to the tweet.
While Congressman Jason Chaffetz (R-UT) introduced postal reform legislation in January, Congress has made no recent moves to reform the Postal Service.
by Tasos Kalfas, @TasosKalfasWRGW