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USPS Network Overhaul Faces Pushback from Postal Regulator

by Mich M.
02/05/2025
in Logistics & Transportation

The U.S. Postal Service’s (USPS) plan to revamp its network encountered opposition from the Postal Regulatory Commission (PRC) on Friday, adding to the ongoing criticism of changes under Postmaster General Louis DeJoy.

The USPS is restructuring its mail and processing operations by modernizing facilities nationwide and consolidating dropoff and pickup activities at select post offices. This initiative aims to streamline mail transportation near major facilities, potentially at the cost of reduced service for rural areas. The agency estimates these changes could save up to $3.7 billion annually. However, the PRC expressed concerns over the proposal, stating that the financial projections are unverified and the changes could have significant negative impacts on certain mail services and rural communities.

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While USPS officials have emphasized that most mail volume would maintain or improve delivery speeds, particularly for services like Ground Advantage and Priority Mail, the PRC highlighted that slower service standards could disproportionately affect rural communities and First-Class Mail. The commission also noted performance declines in areas like Richmond, Virginia, and Atlanta, Georgia, where the changes have already been implemented.

The PRC recommended that USPS reconsider its approach as it continues to roll out the proposed changes. Although the commission cannot block the plans, it pointed out that the USPS Board of Governors and U.S. Congress have the authority to hold the agency accountable.

Despite regulatory and congressional criticism, Postmaster General DeJoy remains confident in the success of his 10-year “Delivering for America” plan, which is intended to stabilize the Postal Service’s finances.

Discover top stories in supply chain logistics news on The Supply Chain Report. For free tools related to international trade, visit ADAMftd.com.

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