Results 1 to 4 of 4

Thread: Trump Admin Targets Amazon And Other E-Commerce Sites With Postal Reforms

  1. #1

    Trump Admin Targets Amazon And Other E-Commerce Sites With Postal Reforms

    On Tuesday, the Trump administration released a report that recommends a series of measures that the Trump's USPS task force says are needed to bring in more revenue for the profit-challenged Postal Service, which reported $3.9 billion in losses during fiscal year 2018, according to The Hill.
    "Although the USPS does have pricing flexibility within its package delivery segment, packages have not been priced with profitability in mind," the report's executive summary states. "The USPS should have the authority to charge market-based prices for both mail and package items that are not deemed ‘essential services.’"
    The report recommends that the USPS divide its mail and package shipments into essential and commercial service categories. Many e-commerce shipments would fall into the latter category, which would not be protected by existing price caps and thus be subject to rate increases.
    Senior administration officials say the Postal Service would be able to change package rates without an act of Congress. But such a move would likely require re-working negotiated service agreements with Amazon and other companies. -The Hill
    While the move is clearly aimed at Amazon - which Trump warned in July over unfair business practices, administration officials have pushed back at the idea that the measures were specifically aimed at the company. "None of our findings or recommendations relate to any one customer or competitor of the Postal Service," said one senior administration official in an anonymous statement to The Hill.


    The changes are part of an initiative Trump began in April when he assembled the USPS task force. The report also covers other areas where it thinks the USPS could improve its finances.
    It called on the Postal Service to restructure pre-payments of employee retirement and health benefits, which business groups say is the main driver of its fiscal woes. But it stopped short of endorsing bipartisan legislation that would end the pre-payments altogether, saying that doing so would place too much of a burden on taxpayers.
    The administration is also recommending the USPS make changes to its internal management, allowing governors to set fiscal targets and allowing the Postal Regulatory Commission to have more power if the goals are not met. -The Hill



    More at: https://www.zerohedge.com/news/2018-...postal-reforms
    Never attempt to teach a pig to sing; it wastes your time and annoys the pig.

    Robert Heinlein

    Give a man an inch and right away he thinks he's a ruler

    Groucho Marx

    I love mankind…it’s people I can’t stand.

    Linus, from the Peanuts comic

    You cannot have liberty without morality and morality without faith

    Alexis de Torqueville

    Those who fail to learn from the past are condemned to repeat it.
    Those who learn from the past are condemned to watch everybody else repeat it

    A Zero Hedge comment



  2. Remove this section of ads by registering.
  3. #2
    https://www.politifact.com/truth-o-m...osing-fortune/

    No, the Postal Service isn't losing a fortune on Amazon

    President Donald Trump took a swing at Amazon once more on April 2, blaming the digital retailer for the United States Postal Service’s financial woes.

    "Only fools, or worse, are saying that our money losing Post Office makes money with Amazon," Trump tweeted. "THEY LOSE A FORTUNE, and this will be changed. Also, our fully tax paying retailers are closing stores all over the country...not a level playing field!"

    We addressed the closing of retailers across the country in another Amazon-USPS tweet-inspired story last week. (Trump had a point.) But for this fact-check, we wondered whether Amazon is causing the Postal Service to "lose a fortune."

    The post office is losing a fortune, but Trump is wrong to blame Amazon.

    Parcels are growing the Postal Service

    The Postal Service reported a net loss of $2.7 billion for 2017. It has lost $65.1 billion since 2007. Much of the red ink is attributed to a 2006 law mandating that USPS pre-fund future retirees’ health benefits.

    First-class mail, the USPS’ biggest source of revenue, also continued to shrink, seeing a $1.87 billion revenue loss in fiscal year 2017.

    Package delivery, however, was one of the few bright spots in its latest financial statement. In 2017, parcels brought in $19.5 billion, or 28 percent of USPS’ annual revenue. At $2.1 billion, packages contributed the largest revenue increase.

    Deals with private shippers like Amazon accounted for $7 billion of the $19.5 billion in revenue. While we know that Amazon is the biggest e-commerce player, we don’t know exactly how much of the $7 billion comes from Amazon, because the details of the postal service’s deals with private shippers are considered proprietary and not made public.

    A good deal?
    USPS ships about 40 percent of Amazon’s packages. Amazon bulk-delivers packages to a USPS distribution center, and the Postal Service brings it to your door. USPS negotiates the discounted rate for that service with Amazon, as it does all other bulk shippers.

    Those rates are kept under wraps. That said, we do know the Amazon deal is at least a break-even venture.

    That’s because the 2006 Postal Accountability and Enhancement Act made it illegal for USPS to price parcel delivery below its cost.

    "By law our competitive package products, including those that we deliver for Amazon, must cover their costs," an August 2017 USPS press release said. "Our regulator, the Postal Regulatory Commission (PRC), looks carefully at this question every year and has determined that they do. The PRC has also noted that competitive products help fund the infrastructure of the Postal Service."

    In fact, the Postal Regulatory Commission gave the green light to the USPS-Amazon deal the same day Trump began tweeting about Amazon last week.
    More at link.
    Letters and bills are where the Post Office is losing money- not packages.
    Last edited by Zippyjuan; 12-04-2018 at 07:07 PM.


    Donald Trump: 'What you're seeing and what you're reading is not what's happening'

    "Truth isn't truth"- Rudy Giuliani

    "China has total respect for Donald Trump and for Donald Trump's very, very large brain," - Donald Trump.

    "Yeah, I have to say these guys(trolls) are pretty sharp. Sort of good to get a challenge and sharpen your thoughts." NorthCarolinaLiberty

    I am Zippy and I approve of this post. But you don't have to.

  4. #3
    Amazon may be making moves to not use the US Postal Service (or at least use it a lot less) and even compete against UPS and FedEx.

    https://www.barrons.com/articles/ama...cks-1543957306

    Amazon Air Is Trouble for UPS, FedEx, Analyst Says


    Once upon a time, the rise of e-commerce was a blessing for the two companies, as more packages were delivered to our doorsteps. However, over the years Amazon became less of a benevolent partner to more of a question mark, until today, when it is seen as a threat.

    Morgan Stanley’s Ravi Shanker argues the market is underestimating the risk that Amazon Air poses to both logistics giants, leading him to lower his price target for both.

    Amazon plans to take delivery of 40 planes and build a hub that could eventually handle as many as 100. And though the Air rollout is in its infancy, investors ignore it at their own risk, in Shanker’s opinion. He estimates a loss of as much as a 300 basis points of UPS and FedEx air volume already.

    Amazon Air’s lanes “overlap with over two-thirds of the volume flow by UPS and FedEx combined,” according to Shanker. “We believe the opportunity cost of Amazon Air’s ramp represents 2% of potential revenue lost for UPS and FedEx in 2018, growing by 10% to 2025.”

    Shanker lowered his price target on UPS to $87 from $92 and FedEx to $230 from $240. Once all Amazon planes are in the air, the “drag will intensify” on both firms, he argues. U.S. domestic air accounts for 17% of revenues at UPS and 19% at FedEx, so the potential pinch on the companies’ bottom lines could be significant.

    But, as so often is the case, what’s bad for its competitors is good for Amazon. Shanker expects Amazon Air to provide “meaningful cost savings,” as much as $2 to $4 per package next year. That translates to as much as $1 billion to $2 billion in savings for the company, or 3% to 6% of its global shipping costs. That is good news as shipping costs look set to rise in the U.S. and in Europe and Japan.
    More at link.


    Donald Trump: 'What you're seeing and what you're reading is not what's happening'

    "Truth isn't truth"- Rudy Giuliani

    "China has total respect for Donald Trump and for Donald Trump's very, very large brain," - Donald Trump.

    "Yeah, I have to say these guys(trolls) are pretty sharp. Sort of good to get a challenge and sharpen your thoughts." NorthCarolinaLiberty

    I am Zippy and I approve of this post. But you don't have to.

  5. #4



Similar Threads

  1. Replies: 0
    Last Post: 09-26-2017, 11:02 PM
  2. Replies: 3
    Last Post: 11-20-2016, 11:47 PM
  3. Postal Service to Make Sunday Deliveries for Amazon
    By CaseyJones in forum U.S. Political News
    Replies: 28
    Last Post: 11-12-2013, 06:10 PM
  4. Gunman Sets His Sites On Supreme Court: Challenges Commerce-Clause Construction
    By better-dead-than-fed in forum U.S. Political News
    Replies: 3
    Last Post: 09-06-2013, 12:29 PM
  5. Replies: 32
    Last Post: 03-16-2011, 02:51 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •