USPS warns it might have to shutter by June

[HazelEyes]

USPS is in crisis mode. USPS warns it might have to shut down by June as $2 trillion coronavirus stimulus package provides no funding. With a negative net worth of $65 billion and an additional $140 billion in unfunded liabilities, the USPS originally expected to run out of liquidity by 2021 without intervention. That has accelerated rapidly because of COVID-19. Fewer people and businesses are sending mail because of the outbreak, which could hasten the decline of the Postal Service and close its doors as early as June, officials warned.

That's not just bad news, this will affect your Amazon Prime deliveries. While Amazon has rapidly taken its delivery network in-house in recent years, the mega-retailer still depends on the USPS to deliver many orders. As recently as July, the USPS was delivering about a third of Amazon packages. Amazon also pledged last April that it would soon deliver all Prime packages in one day. In rural America, the USPS would be a major part of that.
The Postal Service makes up a large percentage of deliveries in rural areas, where Amazon has not invested in its own so-called last-mile network. A December report from Morgan Stanley said it's not a coincidence: The retail giant was "cherry picking" America's densest ZIP codes and leaving areas where homes are more spread out — and more expensive to service — to the USPS.

But the service has a legal imperative to serve all US addresses, even low-margin, low-density rural neighborhoods. Rural America is so costly to service that McKinsey has said that even drone delivery might not offset the costs.

If the USPS were to vanish, Amazon would have to build its last-mile network in rural America or set up partnerships with delivery giants like UPS. CEO Jeff Bezos has already plunged billions into accelerating Amazon's shipping network — its worldwide shipping costs increased by 43% in the fourth quarter of 2019 as online sales grew by only 15%.

This was obtained from the Fortune Magazine website and Business Insider.

That will be catastrophic, in top of everything else that's going on. No mail, or package deliveries. Imagine that. I'm pretty sure that the Government will not allow this to happen. Lets see what unfolds.

[NARMAK]

Honestly i don't know how this BS happens. If i open a business, i can guarantee you i wouldn't be allowed to rack up a couple thousand in liabilities, never mind billions but somehow these pathetically managed companies somehow do. It's a scam.

Also, when everything seems to be purchasable online only and delivery companies seem to be the only ones able to deliver in countries like the UK, it seems to me a perfect time for them to get business all over.

I think it's sad to say but in a so called Capitalist society these companies don't deserve to be able to get bailed out. If i had my way, the majority of banks involved in the financial crisis of 2008 would be bust or majority owned by the state right now. Its ridiculous how they're run. Could do a better job in my underpants sat at home playing videogames and slurping energy drinks. Really!

[darkness2918]

I’m pretty sure the government isn’t going to allow that to happen.

[Dubstar]

Originally Posted by darkness2918

I’m pretty sure the government isn’t going to allow that to happen.

one would hope.

[MrHT]

I don't know how the USPS could be doing so badly when most people today are shopping online. How are people getting their packages? I seriously doubt most are using UPS or FedEx as their rates are significantly higher.

[rdodolak]

Originally Posted by MrHT

I don't know how the USPS could be doing so badly when most people today are shopping online. How are people getting their packages? I seriously doubt most are using UPS or FedEx as their rates are significantly higher.

Congress has required the USPS to prefund healthcare benefits for future retirees which is a significant amount per year.

https://about.usps.com/who-we-are/fi...2010_4_002.htm

https://ips-dc.org/how-congress-manu...how-to-fix-it/

[voltz]

I remember reading about $25b, plus the wipe of debt from the treasury, but I'm not sure if that was part of the previous package before they changed it?

USPS is considerably vital to both home and business. Losing the service would be absolutely crippling, but we also have to note that those still out there handling our deliveries are getting infected pretty hard as well to running the risk the service may have to force a shutdown.

[HazelEyes]

Originally Posted by voltz

I remember reading about $25b, plus the wipe of debt from the treasury, but I'm not sure if that was part of the previous package before they changed it?

USPS is considerably vital to both home and business. Losing the service would be absolutely crippling, but we also have to note that those still out there handling our deliveries are getting infected pretty hard as well to running the risk the service may have to force a shutdown.

Based on a number of briefings and warnings this week about a critical fall-off in mail across the country, it has become clear that the Postal Service will not survive the summer without immediate help from Congress and the White House. A bill was introduced that would provide $25 billion in emergency funding for the Postal Service while eliminating the agency's debt and requiring it to prioritize medical deliveries. The bill would also create temporary delivery points to protect workers. It's not clear what these might look like, as the design would be left up to the Postal Service, but the bill's language implies something similar to Amazon's delivery lockers that allow people to send deliveries to a secure location other than their home.

[DetroitSportsFan]

It’s looking like there will be another stimulus coming later this month, and I’m guessing help for USPS will be part of that.

[Jr7936]

All i know is with all that is going on usps has handled deliveties the worst
The items from them are for the most part delayed by a day or two when handled 100% by usps
Items shipped fed ex or ups or even dhl seem to get here faster or at least on time.

If they get bailed out i think they should look at how expensive it has gotten to ship an item and the speed in which it gets to consumer

If ups can deliever a package from England with all that is going on in 2 in 3 days yet it takes a week or more to get a package from usps which was shipped in the USA something is seriously wrong.

[Dubstar]

Originally Posted by Jr7936

All i know is with all that is going on usps has handled deliveties the worst
The items from them are for the most part delayed by a day or two when handled 100% by usps
Items shipped fed ex or ups or even dhl seem to get here faster or at least on time.

If they get bailed out i think they should look at how expensive it has gotten to ship an item and the speed in which it gets to consumer

If ups can deliver a package from England with all that is going on in 2 in 3 days yet it takes a week or more to get a package from usps which was shipped in the USA something is seriously wrong.

I recently had a package (CD) from amazon.co.uk get lost in the mail crossing the Atlantic - boy was I peeved, thankfully I got reimbursed, but still ...

[TitusTroy]

no way will the US mail service shut down...that's right up there with hospitals, police and fire...

[Dubstar]

Originally Posted by TitusTroy

no way will the US mail service shut down...that's right up there with hospitals, police and fire...

yeah, I don't know how some folk who get checks, important notices, etc., that are done exclusively via the USPS would be received. The distribution of physical mail is pretty key and important facet of day to day life.

[TitusTroy]

Originally Posted by Dubstar

yeah, I don't know how some folk who get checks, important notices, etc., that are done exclusively via the USPS would be received. The distribution of physical mail is pretty key and important facet of day to day life.

maybe the Pony Express will make a comeback...

[Dubstar]

Originally Posted by TitusTroy

maybe the Pony Express will make a comeback...

like that Kevin Costner movie: "The Postman"

[Jr7936]

so lets see
I am waiting on a media mail package coming from deep discount in KY, which has taken 9 business days to arrive in San Diego, and is still not at the post office which will deliver it

how slow can the post office actually be for the amount that they get paid

[AnamorphicWidescreen]

Originally Posted by Dubstar

yeah, I don't know how some folk who get checks, important notices, etc., that are done exclusively via the USPS would be received. The distribution of physical mail is pretty key and important facet of day to day life.

Agree completely. Yes, physical packages could be handled by UPS/Fed Ex, but regular mail which includes checks, bills (if you're not paying these all online), updated drivers licenses, vehicle registration renewals (again, if you're not doing these all online), etc. need to be handled via USPS.

[LordSummerIsle]

USPS won't shut down.

[civiclx]

Just to give the USPS some props, I shipped a package First Class International to Israel back in February and it was delivered in 6 days. I've shipped a lot of packages internationally and while I've had some get to the UK that quickly, I've never had one get to the Middle East in that amount of time. UPS and FedEx may be faster but you spend a lot more. I had a 2 or 3 pound package for a member in Ukraine last year. Cost like $36.50 for First Class. Out of curiosity, I asked at a FedEx store the cost of shipping the same package and it would have been over $300. I could have used a flat rate box for like $250.

So yeah, I hope the USPS doesn't close up shop anytime soon.

[Monterey Jack]

You want to see some severe panic in this country, shut down the mail service.