On Tuesday, the USPS (US Postal Service) outlines one proposed ten-year strategic plan which will likely slow down the present first-class mail delivery standards and increase a few prices to generate $160bn in the predicted red ink in the next ten years.
The strategic plan will revise the present 1-3 day first-class mail delivery standards to 5 days. The USPS said that 61 per cent of the existing first-class postal volume will remain at its present standard.
It will likely shift the deliveries to the trucks than aircrafts, cut hours at a few retail locations and consolidate the mail processing. The plan predicts $44bn in extra revenue from the increased prices; however the officials refused to provide any further details on the same.
Louis DeJoy, the USPS Postmaster General and a supporter of ex-President Trump, said that sans these changes, the USPS will probably require a government bailout, which is something it doesn’t want to apply for.
DeJoy acknowledges how poorly the USPS performed over holiday season because it was busy with package deliveries despite a drop in first-class postal volume.
The USPS requires major financial aid from the Biden admin and the Congress from the pre-funding obligations as well as other changes which could deal with the anticipated loss worth $58bn.