The U.S. Postal Service has announced changes to its mail-handling processes that are anticipated to save the agency $36 billion in transportation, mail processing, and real estate costs over the next 10 years.
The adjustments, which will be implemented beginning April 1, will primarily involve back-end operations and will not impact services at retail locations.
“The changes will maintain service at existing levels for most volume, will upgrade standards for more market-dominant volume than is downgraded. The changes will enhance service reliability nationwide while maintaining the existing five-day service standard day range for First-Class Mail, whereas the day ranges for end-to-end Marketing Mail, Periodicals and Package Services will be shortened,” the USPS stated in a Service Standard Changes Fact Sheet.
“Under the new approach, while most mail will retain the same service standard, some mail will have a faster standard, and some will have a slightly slower standard. For First-Class Mail, the current service standard day range of 1-5 days is staying the same, while the day ranges for end-to-end Marketing Mail, Periodicals, and Package Services are being shortened.”
“All mail will benefit from more reliable service. The new service standards are easy to understand and provide more precise expectations for mailers, as they are based on 5-Digit ZIP code pairs, rather than the current standards that are based on 3-Digit ZIP code pairs,” according to the USPS Fact Sheet.
The switch to the 5-digit zip code pair will help the mail service better organize delivery in a logical sequence and with greater precision. The news service standards will also allow postal facilities to dispatch carriers earlier and travel farther.
“First-Class Mail impact: The Postal Service will deliver 75% of First-Class Mail at the same standard. 14% will be upgraded to a faster standard. 11% will have a slower standard, but all will still be within the current 1-5 day service standard day range,” per the USPS Fact Sheet.
The postal service will also implement changes in service performance reporting to enhance visibility and allow customers to track service more accurately at the local level.
The U.S. Postal Service does not receive U.S. tax dollars and is primarily funded by selling postage, products, and services. The USPS has operated in the red for more nearly two decades, losing more than $100 billion since 2007, Newsweek reported.
The USPS reported a loss of $9.5 billion during the last fiscal year, ending September 30, 2024.