On Tuesday, the United States Postal Service released estimates that it may lose close to $238 billion over the next 10 years if they don’t receive more flexibility on delivery schedules, labor costs and price increases from legislators, regulators and unions, according to the Washington Post
. The Postmaster General John E. Potter delivered a speech on the problems facing the agency, addressing possible solutions and plans for the future.
It is also expected that letter carriers will deliver only 150 billion pieces in 2020, which is a significant drop of roughly 26 billion pieces in 2009 due to the fact that Americans are using the Internet and other cheaper methods of mailing options. Last year, the postal service saw a 13 per cent drop in mail volume, which accounts for $3.8 billion in lost revenue, and will continue for a long period of time.
The cost-cutting may spell an end to Saturday mail deliveries, and increase delivery times for letters and packages. There is also speculation the USPS may increase postage-stamp prices.
The Postmaster General told Congressional staffers, watchdog groups and union members that labor costs are damaging their fiscal responsibility. Therefore, Potter said the mailing agency is expected to revamp how Americans receive and send their mail, “At the end of the day, I'm convinced that if we make the changes that are necessary, we can continue to provide universal service for Americans for decades to come. We can turn back from the red to the black, but there are some significant changes we need to make.”
The Postal Service already owes $10 billion from the US Treasury that it had borrowed and is expected to borrow another $3 billion in 2010, notes the New York Post
The Associated Press
reports that the postal service had a $297 million deficit between October and December, which is usually their best period due to the holiday season.