Tuesday, 11 Dec 2018

The Treasury suggests revising postal rates – but not just for Amazon

In April, Trump convened a task force to evaluate the business model of the postal service. (Christopher Lee / Bloomberg) A task force tasked by President Trump with evaluating the business model of the postal service recommends various options to make it more profitable. But it did not go so far as to say that the postal service, in financial difficulty, was losing money to Amazon, a company that outsources postal services and has always attracted Trump's irritation. Although the 70-page report does not specifically mention his contract with Amazon, he recommends a reassessment of the pricing of ecommerce packages and non-essential mail sent by companies such as Amazon. Earlier this year, Trump urged Postmaster General Megan Brennan to double Amazon's rate charged to other postal services for parcel delivery. Trump also signed a decree in April requiring a government review of the postal service. On Tuesday, the working group suggested that postal services take steps to cope with the rise of e-commerce, but senior management officials said the findings did not apply to no postal service customer. Amazon did not immediately respond to a request for comment. More specifically, the report recommends a more precise definition of the "universal service obligation" of the postal service. Public policy establishes the minimum level of service that the government postal service must provide to citizens and businesses. The rise of e-commerce challenges long-standing ideas. about this standard – because companies rely on the postal service to deliver not just letters but also products of all kinds. Pharmaceuticals, for example, are considered essential couriers. But, for example, a t-shirt or vacuuming essentials, the government can step in and offer a grant to help cover additional delivery costs. The postal service and the Postal Regulatory Commission already have the power to change prices shipping e-commerce goods. Other changes may have to go through Congress. In a statement, Brennan said the postal service was reviewing the task force report. "Reforms are needed to enable the postal service to cost, increase revenues, compete more efficiently, operate with greater flexibility to adapt to a dynamic market and prudently invest in our future," said Brennan. Postal loses money for more than a decade.According to the report, it is expected to lose tens of billions more dollars over the next decade.At the end of fiscal year 2018 , the balance sheet of the postal services shows a liability of $ 89 billion against assets of less than $ 27 billion, which represents a net deficit of more than $ 62 billion.These losses were aggravated by a decrease in the volume of and e-commerce has increased parcel volumes, these revenues are not enough to offset the decline in mail revenues, indicates the report. [Is the post office making or losing money delivering Amazon packages?] Mark Dimondstein, president of the American Postal Workers Union, said in a statement that the report's recommendations would slow down service and delivery times, and that the postal service is already equipped to meet the needs of e-commerce. The union represents 200,000 postal employees. "This poorly designed report makes many of its recommendations based on myths and misinformation that, instead of improving mail services, it would result in higher prices and fewer services for the public," he said. Dimondstein. The report also recommends modernizing the postal service's standards and cost allocation practices so that it can make more informed management decisions, government policies and regulatory reporting. The postal service is also expected to face rising labor and operating costs, which are expected to increase as the country's population grows. The report also suggested that the postal service consider new ways of generating revenue, for example by giving private companies licenses to use mailboxes. When Trump lobbied Brennan that she double the fee charged to Amazon and other companies for sending parcels, she explained to the White House that the postal service was bound by contracts and the arrangements were to be reviewed by a regulatory board. Brennan told Trump that the postal service took advantage of his contract with Amazon and noted for him a wide range of other companies with which he worked in partnership for deliveries. Amazon, the technology and retail giant founded by Jeffrey P. Bezos, is poised to become the second largest US company in terms of market capitalization. Since taking office, Trump has publicly railed against Amazon and Bezos, also the owner of the Washington Post. In 2015, Trump falsely accused Bezos of using La Poste as a tax shelter that allowed Amazon to avoid paying taxes. Trump also incorrectly stated that Amazon was subsidized by the postal service and had suggested that The Post be the "chief lobbyist" of Amazon. their deliveryman. Amazon should pay these costs (plus) and not have them paid by the US taxpayer. Several billion dollars. P.O. Leaders have no idea (or do they?)! As he does with other enemies, Trump has repeated tweets and comments against Amazon. However, his efforts in favor of this examination of the practices of the Post Office were considered as an official measure taken to penalize the company. Amazon transports parcels to the post offices closest to their final destination, then the postal service routes them to their last kilometer of delivery. Amazon said in a report from the Securities and Exchange Commission that it spent $ 21.7 billion on shipping costs last year, including sorting, delivery and transportation costs. It is not known how much of this money was paid directly to the postal service. The details of Amazon's contract with the postal service are kept secret. Amazon said that making the contract public – as well as publishing detailed information about its own distribution systems – would give its competitors an unfair advantage. Read more: White House agreements on China with uncertainty, North American Congress and Trump plan to postpone closure of Bush services after Fed president sent markets to the markets with a suggestion of slowing down rises

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