February 2005
USPS News
First Class mail volume continues its slow decline as email use grows. But Standard Mail volume is rising and, for the first time in the history of the USPS, Standard Mail volume is expected to top First Class Mail.
Total mail volume will rise less than 1% next year, which is attributed to
the number of addresses added each year. Since 2000, the USPS reports First
Class Mail has declined early
8%. But, during that same period, Standard Mail increased nearly 10%.
Due to aggressive cost-cutting by the USPS and the forth-coming Postal Reform Act, Postmaster General John E. Potter reports that current postal rates will not change until 2006. If the Postal Reform Act is passed by Congress then the increase sought in 2006 will be less than 10%. However, if Postal Reform is held up, increases sought by the USPS in 2006 could be more than 10%.
Financial prudence at the USPS has enabled the post office to save $8.3 billion in the past 3 years. The 2005 plan includes eliminating 23 million work hours, a savings of $1.4 billion. Next year is expected to be the service's sixth straight year of increased productivity.
Also, late in 2004, Amtrak cancelled its contract to transport mail for the USPS. Since 1831, mail has been transported on passenger trains, but Amtrak officials complained that there is little profit in moving mail and it sometimes interferes with passenger train operations. In recent years, Amtrak has carried mostly Standard Mail with very little First Class Mail traveling short distances. The USPS did not expect the move to affect mail delivery.
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