USPS has floated a new proposal to Congress that would see it reducing mail delivery from six to five days a week while expanding packaging deliveries to seven days.

The shipping world has changed dramatically over the past decade. Since 2007, total U.S. mail volume has declined 31% to 146 million pieces, including a 41% drop in first-class mail, its most profitable product. At the same time, ecommerce has exploded, offering a way to plug the lost revenue while also adding burden to USPS operations as it handles more packages. USPS has already started to dip its toes into 7-day a week delivery to manage the 20 million packages it averages daily. It now delivers some Amazon.com packages on Sundays and also other ecommerce retail fulfillment during the busy Christmas holiday season.

The agency lost $3.9 billion in 2018, its 12th straight year of losses. According to the agency, this move better reflects the market conditions and would save it billions of dollars per year. Republican and Democratic members of Congress, however are opposed to making a change to mail deliveries.

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Written By:

Jeremy Stewart

Jeremy Stewart leads customer success at Cahoot, helping merchants achieve high-performance logistics through smart technology and process optimization. With a background in both ecommerce operations and client services, Jeremy ensures that every merchant using Cahoot gets measurable results—whether they’re scaling from one warehouse to many or managing complex returns.

While the majority of UPS workers represented by the Teamsters union voted against a new contract, negotiations will continue as turnout was low and the no votes didn’t meet the threshold for killing the deal.

According to the Wall Street Journal, 54.3% of 243,000 Teamsters members that include UPS drivers, sorters and other workers voted against a new five-year contract Friday, while 62.1% of 11,000 freight workers voted down a separate agreement; several regional and local deals were voted down as well.

Union rules require a two-thirds vote to reject a contract when less than 50% of members vote.

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Written By:

Jeremy Stewart

Jeremy Stewart leads customer success at Cahoot, helping merchants achieve high-performance logistics through smart technology and process optimization. With a background in both ecommerce operations and client services, Jeremy ensures that every merchant using Cahoot gets measurable results—whether they’re scaling from one warehouse to many or managing complex returns.

By Heidi Vogt

Discounts established to help less-developed countries have continued to apply even as China has become a major e-commerce shipper.

WASHINGTON—A Trump administration threat to pull out of a global mail system over its discounted shipping rates from China could spur a change in those rates as early as April, the head of the United Nations agency that oversees the system said.The U.S. last week started a year long process to withdraw from the 144-year-old Universal Postal Union because it had failed to eliminate international discounts. Those discounts, aimed at helping developing countries, have continued to apply to China even as it has grown to become the world’s second-largest economy. They can make it cheaper to ship small packages from China to the U.S. than from locations within the U.S.

The move was the latest salvo by the Trump administration against China and a reminder of the president’s willingness to abandon international organizations that he says don’t help U.S. interests. American manufacturers welcomed the move, saying the flood of cheap goods from China undercut their business. The UPU, which is now holding previously scheduled council meetings, commissioned a report Tuesday that is the first step toward fast-tracking new rates, Director General Bishar Hussein said in an interview.

“If we work fast enough, and the member countries are all in consensus on these issues and decisions are made, by April next year I think it is a possibility,” Mr. Hussein said.The discounts also benefit countries including Russia and Mexico. The U.S. has stressed that its decision isn’t only about China, though that obviously is a large factor. Administration officials have said the lower rates cost the U.S. Postal Service some $300 million a year, with discounts ranging from 40% to 70%. Mr. Hussein said he welcomed the move by the U.S. if it manages to reform the group’s “archaic” rates.

“Now with the U.S. coming in and saying, ‘Sorry, enough is enough,’ I think this is going to take the conversation to another level, and I’m very happy to see that,” Mr. Hussein said.

Mr. Hussein stressed that even a fast-tracked process has many steps, including the research report, a proposal and a vote by members. At least half of the organization’s 192 members have to vote for a proposal to be considered, and it can pass only with a two-thirds majority.

If the U.S. were to withdraw from the UPU, it would lose access to global processing and coding systems that make international mail possible, and it would have to negotiate bilateral postal agreements with every individual country, Mr. Hussein said. The U.S. has said it hopes to negotiate a solution that keeps it from having to withdraw from the UPU, but also has said it is proceeding with a plan to institute “self-declared” rates that could take effect within six months.

Written By:

Jeremy Stewart

Jeremy Stewart leads customer success at Cahoot, helping merchants achieve high-performance logistics through smart technology and process optimization. With a background in both ecommerce operations and client services, Jeremy ensures that every merchant using Cahoot gets measurable results—whether they’re scaling from one warehouse to many or managing complex returns.