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mahatmakanejeeves

(57,446 posts)
Tue May 10, 2016, 09:58 AM May 2016

U.S. Postal Service Revenue Grows on Shipping Volume, Pricing

Source: The Wall Street Journal.

USPS says controllable income increases to $576 million; Operating expenses increased 7.4%

By Tess Stynes
tess.stynes@wsj.com
@TessStynes

May 10, 2016 9:37 a.m. ET

The U.S. Postal Service said its revenue rose 4.7% in the latest quarter thanks to stronger shipping volume and price increases. ... For the three months ended March 31, USPS said revenue increased to $17.73 billion from $16.95 billion a year earlier. Overall volume rose 1.4%, driven by 11% growth in shipping and package volume.

The USPS has been striving to increase its share in an e-commerce market long dominated by United Parcel Service Inc. and FedEx Corp. However, the growth in USPS’s shipping volume also has contributed to rising costs, including an increase in hours worked and transportation expenses. During the latest quarter, operating expenses increased 7.4%.

Excluding special items, such as prepaying retiree health benefits and certain changes in workers’ compensation expenses, USPS reported that its controllable income rose to $576 million from $313 million a year earlier. ... But over all, USPS reported a loss of $2.04 billion, compared with a year-earlier loss of $1.47 billion.
....

Looking ahead, USPS has been anticipating added pressure on results with the April 10 expiration of an exigent surcharge, which contributed $519 million to operating revenue in the March quarter.

Read more: http://www.wsj.com/articles/u-s-postal-service-revenue-grows-on-shipping-volume-pricing-1462887477



This is a subscription article. For some reason, I can read the whole thing if I get to it by way of Google News. If I go to The Wall Street Journal. directly, I can read only the first two sentences.

Make sure to read this:

But over all, USPS reported a loss of $2.04 billion, compared with a year-earlier loss of $1.47 billion.
5 replies = new reply since forum marked as read
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U.S. Postal Service Revenue Grows on Shipping Volume, Pricing (Original Post) mahatmakanejeeves May 2016 OP
FedEx and UPS have nearly double their prices in the last few years. mackdaddy May 2016 #1
Still in the poison pill time frame ArizonaLib May 2016 #2
EVs are a great idea ... TexasBushwhacker May 2016 #4
USPS should try it in Phildephia, San Fransico, Boston, Dayton and Seattle happyslug May 2016 #5
I noticed that too TexasBushwhacker May 2016 #3

mackdaddy

(1,527 posts)
1. FedEx and UPS have nearly double their prices in the last few years.
Tue May 10, 2016, 10:33 AM
May 2016

They have also raised fees for everything. When fuel prices went to $4/gal there were all of the "surcharges" than just never went away when the fuel prices dropped.

I live in a less populated county in SE Ohio, and UPS is charging an extra $3.50 per package for delivery here. So much for economic development in Appalachia.

The Postal service is also the only way to ship to HI or AK, and they do not have the big "surprise" broker fees shipping to Canada I have run into with both FedEx and UPS.

Also interesting that the USPS has to pre-fund their retirees 70 years into the future, for retirees that have not even been born yet, and UPS drivers are loosing their retirement due to the teamsters retirement fund collapsing due to the banksters.

ArizonaLib

(1,242 posts)
2. Still in the poison pill time frame
Tue May 10, 2016, 11:13 AM
May 2016

That 75 year in advance requirement for the USPS to pay certain non retirement benefits is in its last year (started in 2007 from 2006 legislation). The oversight committee is made up of a majority of Republicans who want the post office and the economy to fail. The rates they just raised is designed to move as much business to the other carriers as possible. When this advance funding requirement ends, the Republicans are going to throw up their arms and claim "there is a massive surplus in USPS funding - this is an outrage!!! Privatize it so it can be run properly". Yeah right! More like 'run it into the ground' like they do everything else.

The USPS should use that over funding for electric vehicles and then they should build high speed railways for transporting mail and providing high speed transportation to the public at cost.

TexasBushwhacker

(20,190 posts)
4. EVs are a great idea ...
Tue May 10, 2016, 11:44 AM
May 2016

especially where they can be charged with electricity from green sources. Charging EVs with electricity from coal fired power plants wouldn't make much sense.

 

happyslug

(14,779 posts)
5. USPS should try it in Phildephia, San Fransico, Boston, Dayton and Seattle
Tue May 10, 2016, 05:05 PM
May 2016

One of the problems with electric trucks is batteries really do NOT hold that much power, roughly about 15 to 30 minutes worth. With electric vehicles, You quickly run into a dilemma, to get extended range, you need more batteries, but more batteries means more weight and thus you need more power. In simple terms to double the range, you have to quad the electricity being stored.

In automobiles this is NOT that much of a problem, Automobiles tend to be lighter then trucks and carry less of a load, and generally are used on trips shorter then 20 miles (Your Typical County East of the Rockies is 20 miles east to west and 20 miles north to south, thus 20 mile range is generally sufficient for automobiles).

Now the Tesla 3 has a range of 300 miles,

http://www.caranddriver.com/tesla/model-3

On the other hand most electric cars have range less then 100 miles (and many less then 20):

http://www.plugincars.com/cars

Now, I question the Tesla 300 miles range, for I lived in the 1970s and remember the mileage claims made by the big three for their vehicles before Congress crack down on them and forced them to use the EPA test for mileage. One Commercial I remember said a land yacht of time period did over 30 miles per gallon on a trip. It was later revealed, that was true, they took the car on road that generally rolled downhill between two cities. On top of that they ran the car up to about 25 mph, and then turn the engine off and drifted till it almost stopped, and then restarted the engine back up to 25, and turned the engine off again. Thus an Automobile that the EPA later said did about 12 mpg, did over 30 mpg.

I am NOT Accusing Tesla of doing a similar stunt, but battery technology is NOT that advance at the present time, that 300 mile range is WAY in excess of most other claims as to range.

At present the EPA is only giving mpg measurements NOT range. THE EPA includes MPG equivalent if the vehicle has any electric components but NO RANGE. So take any RANGE measurement with a grain of salt.

As to the Five cities I mentioned, all use Trolley-buses (and are the ONLY cities using Trolley Buses at the present time). It is possible to hook up trucks to use those same overhead wires for trucks (This was done in the past in the US, and more recently in Eastern Europe). With a decent size battery system, the electric truck can go 15 minutes away from those wires and then return to them and recharge their own batteries while using the same power source to propel them on the road.

San Francisco Trolley buses:

https://en.wikipedia.org/wiki/Trolleybuses_in_San_Francisco



Trolley Buses in Greater Boston:

https://en.wikipedia.org/wiki/Trolleybuses_in_Greater_Boston



Trolley buses in Dayton Ohio:

https://en.wikipedia.org/wiki/Trolleybuses_in_Dayton



In Philadelphia:

https://en.wikipedia.org/wiki/Trolleybuses_in_Philadelphia



In Seattle:

https://en.wikipedia.org/wiki/Trolleybuses_in_Seattle



2012 Electric Truck in Canada (Experimental):

?w=300&h=200

https://gallondaily.com/2012/05/30/electric-trolley-trucks-may-come-soon-to-north-american-highways/

The biggest problem is the present electric trolley-bus routes MAY not be the best fit for Postal trucks, but the use of the overhead wires would provide enough electric power to propel such trucks all day, provided the trucks never get more then 15 minutes from the wires. The biggest problem would be reconnecting the poles to the wires. Generally this would have to be done by hand, by pulling the poles down and then connecting them to the wires (Which is how Trolley lines were connected to overhead wires). Trolley-buses have two overhead wires, one for power and one for the return line. In any electric system you MUST always have a complete circuit, thus the power line and the return line for Trolley buses.

Please note, such trucks are NOT compatible with actual Streetcars. In Streetcars you have one wire overhead, the "return" path for the electric current is through one of the rails. Thus unless some sort of "shoe" is fitted to the truck to attach to the rail, Streetcars overhead wires can NOT be used.

The use of such overhead wires would greatly extend the range of any truck, the down side is such trucks must be close to such wires (and generally attached to the overhead wires). Fee for the actual charge can be metered in each truck, and the Postal Service paying for electric power it uses.

Side Note: Electric drive provides more POWER to trucks than diesel engines, for on steep hills the electric drive can keep on calling for more power from the overhead wires. This is the primary reason San Francisco and Seattle retained their electric Trolley bus systems. Philadelphia, Boston and Dayton do NOT have the steep hills of San Francisco and Seattle and retained electric Trolley buses for other reasons.

A variation would be to adopt a "Flash Charge" system presently under development. In that system, the bus is recharged every time it makes a normal stop.

https://en.wikipedia.org/wiki/TOSA_Flash_Mobility,_Clean_City,_Smart_Bus

?size=d

More photos:

https://www.flickr.com/photos/abb_schweiz/sets/72157633570470269



http://www.electric-vehiclenews.com/2015/08/worlds-fastest-charging-electric-bus.html

As to trucks, this could cover vehicles picking up mail. You would have to install a "Flash Charge" at every location such vehicles stop (Such as each Postal Box) and while the driver picks up the mail, the battery for the truck is recharged. This is new Technology, being tested only since 2013 in one location world wide (Geneva Switzerland), but it is interesting (China has its own system but still experimental).

TexasBushwhacker

(20,190 posts)
3. I noticed that too
Tue May 10, 2016, 11:17 AM
May 2016

I hadn't sent anything by FedEx in a long time. I made the mistake of sending an envelope to the IRS without checking the price first. $35! USPS would have been $23, 40% less.

The thing is, we have to have a postal service and nobody wants to take over delivering letters. NOBODY. So why can't they bump the cost of a stamp more than a couple of cents? It's crazy cheap that you can send a letter coast to coast for 47 cents. CRAZY. Why can't they set the cost of mailing letters by what the market will bear? Find that sweet spot that won't cut into their bulk mail volume too much. Or maybe, to cut down on junk mail, figure out how much to charge for regular mail and packages to offset a drop in bulk mail.

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