Transport Topics Online  
The Newspaper of Trucking and Freight Transportation
Welcome  Guest  Log In         
1/28/2013 10:30:00 AM Write a Letter to the Editor Write a letter to the Editor

Postal Service Losing Government Shipping Business to FedEx, UPS

The U.S. Postal Service is losing federal government shipping business to private-sector firms such as FedEx Corp. and UPS Inc., Bloomberg News reported.

According to a report from the Postal Service’s inspector general released Jan. 18, FedEx and UPS consistently commanded more than 98% of the $337 million annual shipping spending by federal agencies last year. During the government’s fiscal 2012, which ended Sept. 30, the Postal Service got $4.8 million of that total.

The Postal Service could gain $34.8 million in revenue this year and next year if it implements recommendations from the inspector general that are aimed at capturing more of that government business, Bloomberg said.

The report noted that the government would have spent more last year to ship via the Postal Service than UPS and FedEx, both of which can undercut competitors’ prices to gain business.

Postal Service rates must cover costs as well as a share of the organization’s overhead, and are regulated by the Postal Regulatory Commission and overseen by Congress, Bloomberg said.

The Post Office is not permitted to price express and priority mail at a loss in order to attract customers, the report said.

By Light & Medium Truck

Follow Transport Topics on Subscribe to get up to the minute news briefs and more from our feeds. RSS Twitter Twitter Facebook Facebook

© 2013, Transport Topics, American Trucking Associations Inc.
Reproduction, redistribution, display or rebroadcast by any means without written permission is prohibited.




Follow Us


This free daily newsletter delivers the latest headlines.

TT Executive Suite
This subscriber-only newsletter program tailors your news.



© American Trucking Associations, Inc., All Rights Reserved Privacy Statement