Ontopic Any thought on the USPS potentially shutting down?

Floptical

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With the Post Master General announcing they will be out of money by this winter it's appearing the USPS might finally be done unless they are bailed out. While everyone has seen the writing on the wall for many years now it does bring up a few interesting points. If the USPS does shut down then the commercial market (UPS, FEDEX, etc) will fill the shipping void. We will not lose our ability to get items from A to B but we might end up losing some of the convenience we have now with daily delivery. The operating costs to do daily delivery for smaller items will most likely cause the commercial carriers to not take on that aspect. Unless someone is wanting to pay a much higher cost to mail these items then everyone might have to adjust how we mail things as well as what is mailed. This could easily affect items like magazines, NetFlix, etc. Any thoughts on this or how it might affect you if at all.
 

OzSTEEZ

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I think it's crazy to see services like this falling apart while the country is still spending shit tons on it's military.

I wonder how many people are going to be joining the unemployed? I wonder what other services/business this will affect and create more unemployed.
 

Floptical

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I can also see this forcing the last remaining folks who attempt to not utilize banks much into a corner. There is still a large portion of people who receive paper paychecks and cash them to basically live off cash and mail money orders etc to pay bills.
 

Floptical

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I think it's crazy to see services like this falling apart while the country is still spending shit tons on it's military.

I wonder how many people are going to be joining the unemployed? I wonder what other services/business this will affect and create more unemployed.

The USPS is the 2nd largest commercial employer behind Walmart. They also have the largest vehicle fleet. And military spending has nothing to do with this. The USPS does not receive any money from the Government to operate. It's has always been self funded.
 

OzSTEEZ

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The USPS is the 2nd largest commercial employer behind Walmart. They also have the largest vehicle fleet. And military spending has nothing to do with this. The USPS does not receive any money from the Government to operate. It's has always been self funded.

Why is it going down? Cost of fuel?
 

Floptical

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Why is it going down? Cost of fuel?

It's mainly because a large portion of the money from stamps and shipping has gone away. Most people utilize email, online bill pay, etc. The USPS is just a victim of technology. I really think the only thing that can save them is a complete restructuring. Maybe going to only delivering mail 2-3 times a week.
 

OzSTEEZ

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It's mainly because a large portion of the money from stamps and shipping has gone away. Most people utilize email, online bill pay, etc. The USPS is just a victim of technology. I really think the only thing that can save them is a complete restructuring. Maybe going to only delivering mail 2-3 times a week.

They need to reinvent the delivery system also. Maintaining and fueling those vehicles has got to cost a fortune. In Australia, all our mail in delivered by a postal worker on a motorcycle which is significantly more cheaper.
 

Floptical

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They need to reinvent the delivery system also. Maintaining and fueling those vehicles has got to cost a fortune. In Australia, all our mail in delivered by a postal worker on a motorcycle which is significantly more cheaper.

Most places I've lived it's all been walking routes. I have though always wondered why it cost me the same amount to mail a letter to someone 1 block away as it does to mail something 2000 miles away.
 

Sarcasmo

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Every time I open my mailbox I have a pile of shit to throw in the garbage courtesy of the USPS. So no, I'm not even worried.
 

Josh

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Something isn't right here. They have an annual operating revenue of $67 billion dollars and they handle 40% of the WORLD'S mail*. If the USPS was a private sector company, they'd rank # 29 on the Fortune 500 companies in 2010. Just because letter volume has gone down, doesn't mean package volume have gone down. Did I understand right that Congress passed legislation that requires the USPS to fully fund their pension plans? Maybe this is why they are broke?

* http://about.usps.com/news/national-releases/2011/pr11_060.pdf
 
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Floptical

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Something isn't right here. They have an annual operating revenue of $67 billion dollars and they handle 40% of the WORLD'S mail*. Just because letter volume has gone down, doesn't mean package volume have gone down. Did I understand right that Congress passed legislation that requires the USPS to fully fund their pension plans? Maybe this is why they are broke?

* http://about.usps.com/news/national-releases/2011/pr11_060.pdf

Package volume has gone done though. Before most people mailed everything via the USPS and used UPS or Fed Ex if it needed to be overnight. Now most people utilize the commercial carriers for package. I would say 99% of companies do all of their shipping via non USPS methods. I couldn't tell you the last time I received a package via the USPS. Honestly most times I order stuff if it's shipped via USPS I look for another place to purchase it that uses UPS or Fed Ex.
 

Floptical

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Also Fed Ex drivers who deliver to your house are not Fed Ex employees. They are private contractors who own their own trucks and are paid by Fed Ex to deliver. That is why those guys make nearly 6 figures because they own the truck and operating costs.
 

Josh

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That I did know. Often times Fedex drivers will sell their delivery routes to get more profitable delivery routes. At least that is what one Fedex guy told me.

I will agree that I prefer to ship by UPS and Fedex, mainly for delivery tracking numbers. From what I heard from a friend, USPS is investing in implementing a package tracking system (no not the delivery confirmation junk). If they can get that done and increase their delivery on-time statistics, they'd give UPS & Fedex a run for their money. USPS can be a lot cheaper to ship (you've all probably seen their ads "if it fits, it ships" priority shipping). I can't remember if I've ever had a package shipped by USPS damaged. I know Fedex for me has been terrible in dropping and crushing packages. UPS is better than Fedex, for me at least, in that regard.

Edit: back on topic, I can't see USPS shutting down. What I could see is mail delivery stopping completely, and only package delivery if that. Then you'd have to drive to a post office to pick up your items. Plus closing a lot of smaller post offices that are not profitable.
 
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