Sign up for membership to become a founding member and help shape HuffPost's next chapter. The Senate passed a postal bill in April that would have provided financial relief in part by reducing the annual health payments and providing a multibillion-dollar cash infusion, basically a refund of overpayments the Postal Service made to a federal pension fund. The annual payment of roughly $5.6 billion had been deferred for a year in 2011, resulting in a double payment totaling $11.1 billion that became due this year. More On This Topic Rural lawmakers are resisting action, worried about closures of postal facilities in their communities. Much of the red ink in 2012 was due to mounting mandatory costs for future retiree health benefits, which made up $11.1 billion of the losses. "We cannot sustain large losses indefinitely. The net loss for the year, which was decreased by a $1.3 billion non-cash change in estimate, was $5 billion. Australia Post boss Christine Holgate has warned losses for the company's letter business could double in the current financial year and force the postal service to … An increase in its shipping and package business helped the agency see a 2 percent rise from last year in its total operating revenues to $16.5 billion. Post office losses widen to $5.6 billion this year - MarketWatch. The U.S. The rate increase is a temporary measure to mitigate the effects of the recession. Today is National Voter Registration Day! Postal Service reported Friday that losses for fiscal 2020 widened to more than $9 billion even as revenue rose, given a drop in demand for mail services and … Postal Service on Thursday reported an annual loss of a record $15.9 billion and forecast more red ink in 2013, capping a tumultuous year in which it was forced to default on billions in payments to avert bankruptcy. Last year was the worst for the High Street in more than 25 years as the coronavirus accelerated the move towards online shopping, analysts say. Postal Service reported Thursday a fiscal 2019 net loss … The Post Office has racked up $5.9 billion in losses already this fiscal year. But he said the mail agency has been hampered by congressional inaction on a postal overhaul bill that would allow it to eliminate Saturday mail delivery and reduce its $5 billion annual payment for future health benefits. ©2021 Verizon Media. Part of HuffPost Business. Postal Service continued to bleed money during its second quarter, despite an increase in package revenues and an emergency price hike that took effect in January. The U.S. The Postal Service projects the delivery of 15.5 billion cards, letters and packages from Thanksgiving to New Year's Eve—including a record 600 million packages. Investors, for instance, can expect parcel-shipping rates to rise further as the post office tries to limit losses by controlling what it can. Expenses climbed to $81 billion, up from $70.6 billion, largely due to the health prepayments. JOHANNESBURG - The SA Post Office (Sapo) continues to bleed with the entity posting another financial loss of R978 million in the last financial year, however, showing a … The U.S. The financial losses for the fiscal year ending Sept. 30 were more than triple the $5.1 billion loss in the previous year. Savings from plant consolidations, restructuring hours at Post Offices, reductions in delivery units, and workforce optimization resulted in approximately $1 billion of savings in 2013. The House, however, remains stalled over its own legislation that would allow for aggressive cuts, including an immediate end to Saturday delivery. The cost of restructuring Consignia, the renamed Post Office, has doubled from earlier predictions of Pounds 400m to at least Pounds 800m. Postal Service posted a $5.8 billion loss in fiscal 2016, bringing its 10-year cumulative total loss to $62.4 billion. Cash levels dipped perilously close to zero last month before bouncing higher due to a surge in election-related mail. Posted by Ross Stalker | Updated 2006-10-16. The rate increase, which is tied to the rate of overall inflation, will make only a small dent in financial losses. Because of continued losses, the agency also said, it has not been able to update its fleet. The post office also has been rocked by declining mail volume as people and businesses continue switching to email and other online options in place of letters and paper bills. For the 2015 fiscal year, the Postal Service recorded a net loss of $5.1 billion, compared with a loss of $5.5 billion in 2014. : Post office’s losses widen to $9 billion this year as election boost fails to offset drop in mail demand . The number of items mailed in the last year was 159.9 billion pieces, a 5 percent decrease. A post office that loses a few billion dollars a year is affordable for a country with a GDP of $20 trillion. Postal Service lost $8.8 billion in fiscal 2019, more than doubling its losses from the previous year. "The U.S. The word processors and typists occupation is slated to lose 13,200 jobs by 2020, according to the Bureau of Labor Statistics. The financial losses for the fiscal year ending Sept. 30 were more than triple the $5.1 billion loss in the previous year. All rights reserved. The agency also wants Congress to authorize it to limit door-to-door delivery and to cut Saturday mail delivery, but those plans have been blocked by some unions and lawmakers who say it would hurt their communities. Congress is focused now on a Jan. 1 deadline to avert across-the-board tax increases and spending cuts known as the "fiscal cliff.". It remained unclear whether House leadership would take up the postal bill in its current lame-duck session. The net losses at the Postal Service grew by leaps and bounds in fiscal year 2019 according to the agency’s latest financial results. Despite the red ink, the latest announcement showed an improvement from 2012 when USPS lost $15.9 billion that year. On the plus side, the mail agency reported that its fast-growing shipping services, which include express and priority mail, grew by 9 percent, helping to offset much of the declining revenue from first-class mail. Under a … "Given the positive mail trends, it would be irresponsible to degrade services to Americans and their businesses, which would drive away mail - and revenue - and stop the postal turnaround in its tracks," Fredric Rolando, president of the National Association of Letter Carriers, said in a statement. Postal Service on Friday said its losses more than doubled to $4.5 billion in the quarter ending in March and warned the economic slowdown spurred by the spread of COVID-19 could severely hurt its finances over the next 18 months. USPS blames much of its financial troubles on a 2006 mandate to stow away billions of dollars for its future retirees' healthcare. The post also cites a Fortune story that details alarms raised by some officials about the health of the Postal Service. USPS has focused on its shipping and package business and expanded to Sunday package delivery as more people shop online and need a service to deliver their purchases. While urging quick congressional action, the Postal Service acknowledged the uncertainty in its legal filings on Thursday, which anticipate that Congress will fail to act. The Postal Service, an independent agency, does not receive tax money for its day-to-day operations but is subject to congressional control. The waste, fraud, and inefficiency of DOD far exceeds the operating losses of the Post Office. The agency said on Monday that it lost $2 billion from April to June, compared with a net loss of $740 million in the same period last year, and a $1.9 billion loss in its first quarter. The Postal Service reported a net loss for the year of $2.7 billion, a decrease in net loss of $2.8 billion compared to 2016. The U.S. At which, PMG Potter testified that by the year 2020, the USPS cumulative losses could exceed $238 billion, and that mail volume could drop 15 percent from 2009. Fears for Post Office services hit by losses of Card Account footfall. Post Office branches, along with the Royal Mail delivery service, were formerly part of the General Post Office and after 1969, the Post Office corporation. In 2017, the service lost $800 million on $69.7 billion operating revenue. Postal Service lost money in six out of the 10 years from 2001 through 2010, according to its financial reports. But that's not Amazon's fault. In all, campaign mailings and mail-in ballots helped bring in $500 million, a new high and roughly double the amount in the 2008 election year. Overall, the post office had operating revenue of $65.2 billion in fiscal 2012, down $500 million from the previous year. Many in the industry point to these improvements as a sign that the agency does not need to make the drastic service cuts it has sought. We made it easy for you to exercise your right to vote! WASHINGTON, Aug 11 (Reuters) - The U.S. (Reporting by Elvina Nawaguna; Editing by Karey Van Hall and Jonathan Oatis). Despite the red ink, the latest announcement showed an improvement from 2012 when USPS lost $15.9 billion that year. The U.S. Much of the decline came in first-class mail. The U.S. Shipping and package revenue jumped 6.6 percent, compared with the same period last year. The post office lost $153 million last year and $276 million in 2018. Donahoe said package volume also is expected to jump by 20 percent this holiday season compared to the same period last year, boosted by increased consumer purchases on e-Bay, Amazon.com and other Internet shopping sites. Since 2007, losses have totaled more than $70 billion. The Postal Service already defaulted on three of its payments into the fund and does not expect to make the next $5.7 billion installment due September 30. But Rep. Darrell Isa, chairman of the House Oversight and Government Reform Committee and sponsor of the House bill, has said he believes postal legislation can be passed this year. 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