US non-profit advocacy group Keep US Posted has warned that postage rate hikes are contributing to the USPS’s mounting losses, after the company announced a loss of US$6.5bn for the fiscal year 2023.
The USPS board of governors said that the loss had been driven by mail volume declines of more than 9% and a 2% drop in package volumes. The board also announced that it anticipates a US$6.3bn loss next year and noted that the 10-year Delivering for America plan could face changes.
Kevin Yoder, Keep US Posted executive director and former congressman, said, “Louis DeJoy’s Delivering for America plan promised that the unprecedented postage increases which have taken place every six months since January 2022 would help the USPS regain financial solvency, but they are clearly only triggering a dramatic loss in mail volume and fueling even more debt for the US Postal Service. Twice-annual, above-inflation postage hikes are worsening the USPS’ financial woes and trapping it in quicksand, as even more mail is driven out of the system.”
Yoder continued, “Rate hikes are sabotaging traditional mail, which still accounts for the majority of postal service revenue. Not only are the American people slated to endure an unprecedented fourth stamp hike in two years this January, but we’ll be bailing out the postal service, unless Congress acts now to provide more oversight. DeJoy shouldn’t receive any more blank checks from Congress to only raise postage rates, cut service and drive more debt.”
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