The United States Postal Service (USPS) and their unions continue to raise an alarm about their dire financial situation. According to the USPS officials, they are losing around $2 billion per month amid the COVID-19 pandemic. A recent release said the financial situation is “threatening their ability to operate.”
While package deliveries are up, business mailings are down, which is how USPS makes most of its money.
“It is a dire situation,” Mark Dimondstein, president of the American Postal Workers Union, said. “The post office does not run on any tax dollars; it runs on the revenue generated by postage and postal products.”
Dimonstein says the postal service could run out of money by the Fall.
USPS has asked Congress for a $75 billion bailout. While a $25 billion funding package has passed the House, it has so far not passed the US Senate.
The American Postal Workers Union has launched a rare television advertisement asking Americans to call Congress.
There is bipartisan support in Congress to help the USPS.
If USPS closes or is forced to alter its mission or prices, what would be the impact?
Well, FedEx or UPS would likely fill the void. But there would absolutely be an impact on shipping costs.
“Rates would certainly go up,” Dimondstein explained. “People could charge whatever they want. The public postal service is the low-cost anchor.”
For instance, a 9-inch box weighing 2 lbs would cost around $8 to ship from Tampa to Cleveland. It would cost around $12 with UPS or FedEx.
Amazon prices could also be impacted, because USPS handles around a third of their deliveries.
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