Logistics Blog | The Grimes Companies in Jacksonville, FL
USPS Parcel Shipping

In March 2018, Tom Carper (D-Del.), Jerry Moran (R-Kan.), Heidi Heitkamp (D-N.D.) and Claire McCaskill (D-Mo.) introduced The Postal Reform Act of 2018: Improving Postal Operations, Service, and Transparency" in the U.S. Senate. If passed, the new law would make sweeping changes to how the U. S. Postal Service is run. Current rules and regulations used to run the USPS have led to 11 straight years of net losses for the postal service. How might supply chain be affected by this new legislation?

Currently, the USPS is prohibited from shipping alcohol. If the new legislation passes, the US Post Office will then be allowed to ship alcohol. This may affect currently authorized alcoholic beverage shippers. Now they may have to compete with another shipper; the USPS.

The new law aims to help the debt-ridden USPS be more cost-effectively operated as part of the global supply chain. Currently, e-commerce giant’s Amazon, FedEx and UPS are some of the USPS' biggest customers. If the USPS’s financial woes are alleviated by new postal reform legislation it just might affect e-tailer and consumer shipping rates. Additionally, if the bill passes, companies that sell alcohol might start to enjoy more flexible shipping options.

According to the US Congress, the USPS is facing a $15 billion debt. Fingerpointing for the debt goes to an unaffordable yet mandated postal employee retiree health benefits.InsideSources reports that the mismanaged USPS retiree health benefits program cannot be ignored. Whatever the reasons for the US Postal Service operating in the red, something has to be done to improve things. How Might Supply Chain be Affected?

Steve Tracey, executive director of the Center for Supply Chain Research at the Pennsylvania State University, believes changes can be made to fix things. He suggests that if the USPS were allowed "more dynamic pricing flexibility as a market participant," that the Postal Service could turn itself around.

The bottom line is that if Congress mandates big USPS operating changes, supply chains would be affected. What those affects might be remains to be seen.

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