Postal Affairs Podcast
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Most Recent Episode
Postal Affairs with @BobSchimek: @USPS Q2 & Irresistible Mail Awards | May 17th, 2017
5 days ago
Director of Postal Affairs, Bob Schimek elaborates on the latest developments with the United States Postal Service:
USPS Reports 2Q Results:
Controllable Income was pretty much break even at a positive $12M
o A dramatic drop from SPLY which was $576M
USPS noted that primary difference was the removal of the exigent surcharge that would have added $500M
o Reminder: Exigent surcharge rolled off in April of 2016, so we are near the end of comparing apples to oranges
Operating Expenses increased $69M over SPLY
Year to date, the USPS has a net income of $967M (compared to a 1.6B loss in 2016)
Letter Mail Volume declined by 1.4B pieces (3.8% drop)
Packages continue to be the bright spot, volume grew by 137M up 11% and Revenue up by 12.7%
USPS Irresistible Mail Award:
Q4 Winner is another car company.
o Q1 winner was Toyota
o Q2 winner was Lincoln
Q4 winner is Porsche
o “It Takes Something Amazing” campaign
o It used both a hologram and print to introduce the new Porsche 911
o It included a plastic prism that could display a holographic video when placed on a tablet or smartphone
o Along with a full-color glossy brochure on features of the new model
2017 Irresistible Mail Grand Champion will be selected at the National Postal Forum on May 23rd.
PRC being Pushed by USPS to Decide on New Service Measurement Plan
History (Fox minding Hen House)
PRC has ruled that both systems must be run in parallel for an undetermined amount of time.
USPS is requesting PRC Decision by June 1st
The USPS request is an effort to avert unnecessary expense and duplication of effort.
“Assuming Approval”, it would allow the USPS to cancel its current independent contract (EXFC) for FY2018
OIG looks at USPS Fuel Consumption and Risk:
USPS has 7,600 mail transport vehicles and 16,000 supplier-operated highway contract routes
This make the USPS one of the largest users of diesel fuel in the US.
FY2106 the USPS purchased 251M gallons spending more than $570M
o Doing the math, that is $2.27 per gallon.
o A change of as little of 25 cents a gallon can have over a $62M im