Trump pushed postmaster general to double Amazon's shipping rates

[Harry Dresden]

I for one hope he succeeds. I absolutely hate - hate when UPS joins up with the postal service to deliver packages.
If it stays with UPS, you get the package on time well over 90% of the time...but if the USPS so much as touches the package it delays it by at least a couple days if not longer, and there is no guaranteed date - only "arrive on or before date".
So we have dramatically reduced online shopping because of it. If I am buying something worth several hundred dollars I want to know exactly what day it will be on my front porch.

Based on what? Packages dropped off by UPS are delivered same day or the next at worst. UPS would deliver in a much longer time frame if it were not for last mile delivery by the USPS on a large number of packages. You have tracking on your package, of course you know where it is.

agree with the first part....but USPS tracking is sub-par some times....

 

[Harry Dresden]

Aye, but...and this is a big one, it is noted that the rates given are at least break even, but all data points to "just above costs".
That means they are losing money.
Why? Because the numbers don't include capital and other service cost in that figure. In order for the USPS to deliver the $7bn in packages, the overall equipment/employee/facility-logistical needs surpass the revenue.
This is true in any business. You cannot have "wholesale" revenue streams beyond whatever the critical mass costs of doing business. In these cases, the cost of doing business is higher than the small profits allow.

Again, USPS charges every other large bulk shipper the same rate and they are indeed turning a profit on package delivery, while taking a loss on just about everything else. Here's a good read:

What the US post office really gets from Amazon

My mail delivery gal has been there for 30 years and close to retirement. She said that if it weren't for Amazon, they'd be struggling mightily. USPS is VERY profitable. The reason they post losses is the Republican bill forcing them to fund employee pensions 75 years in advance.

that bill was co-sponsored by democrats....and obama and co sure as hell did nothing about it....

was it??? really??? didn't know that....!!

yep.....2 democrats...

 

[Coyote]

The Toxic Orange Turd has officially become more Nixonian than Nixon himself. Wonder if he has an Enemies List?

President Trump followed through on his frequent complaint that Amazon is costing the U.S. Postal Service "many billions of dollars" by urging the postmaster general to double the rate the U.S. Postal Service charges Amazon and other companies to ship their packages, the Washington Post reported Friday.

Citing three sources familiar with the conversations between U.S. Postmaster General Megan Brennan and President Trump, the Post also reported that Brennan has not acceded to the president's wishes for several reasons. For one, the Postal Service has binding contracts with these companies, and a regulatory commission would have to review those contracts. But she has also reportedly told Mr. Trump that the USPS relationship with Amazon is beneficial. In 2017, Postal Service revenues from private shippers including Amazon added up to $7 billion, Politifact noted.

If the rates were doubled, it would cost Amazon and private shippers billions, which would likely be passed on in the form of higher prices for shoppers.

The Post's sources said that Brennan and Mr. Trump have met on this issue several times beginning in 2017 and also had a meeting on it four months ago -- none of which appeared on Mr. Trump's public schedule.​

Trump has pushed postmaster general to double Amazon's shipping rates, report says

Apparently Trumpelthinskin is not only angry about WaPo's honest coverage of his presiduncey - Bezos suggested launching him into space ... a VERY fine idea!

Jeff Bezos on Twitter

Waiting for the day Lying Trump doubles the cost of mailings for the Democrat Party, he'll call it The Watergate Decree. Then he'll get busy doubling the cost of parking for Democrats near the capital building.

That wouldn't be unprecedented.

It would be much like the Obama administration using the IRS to target conservative groups, eh?

Really, this bullshit again.

The Tea Party groups tried to register under a category that states it's main purpose can not be political. Who would not target any group with Tea Party in their name?

Don't blame Obama or the IRA for your ilk's stupidity.

Also, it was fully investigated, by a Republican dominated congress. They found no evidence Obama had anything to do with it. A bit of a difference from Trump trying to use his position to bring down a private entity.

 

[rightwinger]

Before the Amazon boom, the Post Office was talking about eliminating Saturday deliveries

Now, they are delivering on Sunday

they were talking about eliminating sat when bush was president....

Amazon saved them

did they?....Why Amazon Can’t Save the USPS

They are making money off of Amazon. First class postage is killing them

Fast forward to August 2016, when the USPS released a sobering statistic: package revenues would have to increase 260% to make up for the losses in first-class profits. Package deliveries were more prevalent than ever, but their earnings still paled in comparison to that from first-class mail. But first-class revenue is on a landslide, of course.

 

[saveliberty]

Amazon is an easy target, but here's the actual problem:

This strange consequence of postal law was less significant when the mail was mostly personal correspondence. But as Chinese companies began logging on to Web marketplaces like eBay, Amazon, and Alibaba, they started taking advantage of the shipping deal to sell directly to American consumers. And so it’s never been easier to get something cheap and Chinese delivered to your door for a startlingly low price: $4.64 for a digital alarm clock; $2.50 for a folding knife; $1.88 for an iPhone cable — all with shipping included.

“I can’t believe our government would do this to undercut American sellers to help the Chinese sell more in America,” McGrath said.

Under this decades-old arrangement, which is overseen by an agency of the United Nations and has participation from nearly every country, national postal services give each other discounted rates on international mail under a certain size and weight.

Here’s how it works. Say someone from Germany wants to sends a letter or package (under 4.4 pounds) to Chicago. The German postal service will handle the Germany-to-U.S. leg. After the package arrives in, say, New York, the USPS takes over, delivering it to its final destination.

Countries used to provide this forwarding service to each other for free, but in 1969 an update to this postal treaty called for small fees (called terminal dues) on each mail piece. Since then the dues have grown, and the payment system has become labyrinthine. In most cases, however, postal services still charge each other less than they would charge their own citizens for moving a package across the country.

According to the terms set out in Universal Postal Union treaty, the USPS in 2014 gets paid no more than about $1.50 for delivering a one-pound package from a foreign carrier, which makes it hard to cover costs. [1] The USPS inspector general’s office estimated that the USPS lost $79 million in fiscal year 2013 delivering this foreign treaty mail. (The Postal Service itself declined to provide specific figures.)

The Postal Service is losing millions a year to help you buy cheap stuff from China

 

[eagle1462010]

PRC Examination of USPS Financials Show Net Operating Loss of $1.3 Billion: Liabilities weaken improvements in liquidity | Postal Regulatory Commission

In FY 2017, the Postal Service recorded its first net loss from operations, since FY 2013, of $1.3 billion, largely due to declining mail volume, the expiration of the exigent surcharge, and higher operating costs. However, including non-cash workers’ compensation costs and retirement expenses, the net loss from operations increases to a total net loss of $2.7 billion in FY 2017. This is an improvement of $2.8 billion compared to the total net loss in FY 2016. This improvement is the result of a $4.8 billion decrease in the retiree health benefits expense, and a $3.4 billion decrease in the non-cash workers’ compensation expense, offset by $2.4 billion in increased expenses that resulted from provisions in the Postal Accountability and Enhancement Act (PAEA) for unfunded retirement benefit costs. Liquidity also continues to improve in FY 2017 and is at its highest level since FY 2007. However, liabilities on and off-balance sheet for pension and annuitant health benefits continue to threaten the improvements in liquidity.

The Postal Service experienced a decline in revenue for most of its Market Dominant products. Consumer price index-based price increases were not sufficient to offset the decline in mail volume and the reduction in additional revenue from the expiration of the exigent surcharge. Overall Market Dominant Mail and Services revenue declined 7.7 percent from the previous year. First-Class Mail revenue declined by 6.7 percent while Marketing Mail revenue declined by 5.7 percent. Periodicals revenue also saw a decline of 8.8 percent. Conversely, package services revenue increased by 0.3 percent compared to FY 2016.

In contrast, overall revenue for Competitive products increased by $2.2 billion in FY 2017. The Competitive product price increase effective January 2017, the transfer of First-Class Mail Retail-Single-Piece from the Market Dominant category, and higher volume were the primary drivers of the additional revenue.

 

[Harry Dresden]

Before the Amazon boom, the Post Office was talking about eliminating Saturday deliveries

Now, they are delivering on Sunday

they were talking about eliminating sat when bush was president....

Amazon saved them

did they?....Why Amazon Can’t Save the USPS

They are making money off of Amazon. First class postage is killing them

Fast forward to August 2016, when the USPS released a sobering statistic: package revenues would have to increase 260% to make up for the losses in first-class profits. Package deliveries were more prevalent than ever, but their earnings still paled in comparison to that from first-class mail. But first-class revenue is on a landslide, of course.

They are making money off of Amazon.
not as much as you think they are.....

 

[busybee01]

The Toxic Orange Turd has officially become more Nixonian than Nixon himself. Wonder if he has an Enemies List?

President Trump followed through on his frequent complaint that Amazon is costing the U.S. Postal Service "many billions of dollars" by urging the postmaster general to double the rate the U.S. Postal Service charges Amazon and other companies to ship their packages, the Washington Post reported Friday.

Citing three sources familiar with the conversations between U.S. Postmaster General Megan Brennan and President Trump, the Post also reported that Brennan has not acceded to the president's wishes for several reasons. For one, the Postal Service has binding contracts with these companies, and a regulatory commission would have to review those contracts. But she has also reportedly told Mr. Trump that the USPS relationship with Amazon is beneficial. In 2017, Postal Service revenues from private shippers including Amazon added up to $7 billion, Politifact noted.

If the rates were doubled, it would cost Amazon and private shippers billions, which would likely be passed on in the form of higher prices for shoppers.

The Post's sources said that Brennan and Mr. Trump have met on this issue several times beginning in 2017 and also had a meeting on it four months ago -- none of which appeared on Mr. Trump's public schedule.​

Trump has pushed postmaster general to double Amazon's shipping rates, report says

Apparently Trumpelthinskin is not only angry about WaPo's honest coverage of his presiduncey - Bezos suggested launching him into space ... a VERY fine idea!

Jeff Bezos on Twitter

Good for him. Amazon should pay more. I think he bumped their rates because Bezos is gay.

The USPS is making money off of Amazon and delivering packages in general. Amazon is not going to pay more. It is the customers who are ordinary Americans who will pay more.

 

[Zander]

Unnamed sources.....

 

[eagle1462010]

Fed Ex and UPS have claimed unfair contracts with Amazon...............

The USPS is still losing money.............overall ............and Amazon is getting unfair advantages over the competition who could also make the deliveries..................

Catch 22 these package deals are keeping the USPS alive.............push too far and they will be even in worse shape.

 

[Coyote]

Fed Ex and UPS have claimed unfair contracts with Amazon...............

The USPS is still losing money.............overall ............and Amazon is getting unfair advantages over the competition who could also make the deliveries..................

Catch 22 these package deals are keeping the USPS alive.............push too far and they will be even in worse shape.

If it is unfair...why do they agree to them?

 

[Dana7360]

Get rid of the post office.

We don't need it anymore.

You need to read the constitution.

The constitution requires that we have a post office.

The only way to get rid of the post office is with a constitutional amendment.

Good luck with that.

For people who insist they are the only ones who love our constitution you people sure do violate it a lot.

 

[Care4all]

Amazon is an easy target, but here's the actual problem:

This strange consequence of postal law was less significant when the mail was mostly personal correspondence. But as Chinese companies began logging on to Web marketplaces like eBay, Amazon, and Alibaba, they started taking advantage of the shipping deal to sell directly to American consumers. And so it’s never been easier to get something cheap and Chinese delivered to your door for a startlingly low price: $4.64 for a digital alarm clock; $2.50 for a folding knife; $1.88 for an iPhone cable — all with shipping included.

“I can’t believe our government would do this to undercut American sellers to help the Chinese sell more in America,” McGrath said.

Under this decades-old arrangement, which is overseen by an agency of the United Nations and has participation from nearly every country, national postal services give each other discounted rates on international mail under a certain size and weight.

Here’s how it works. Say someone from Germany wants to sends a letter or package (under 4.4 pounds) to Chicago. The German postal service will handle the Germany-to-U.S. leg. After the package arrives in, say, New York, the USPS takes over, delivering it to its final destination.

Countries used to provide this forwarding service to each other for free, but in 1969 an update to this postal treaty called for small fees (called terminal dues) on each mail piece. Since then the dues have grown, and the payment system has become labyrinthine. In most cases, however, postal services still charge each other less than they would charge their own citizens for moving a package across the country.

According to the terms set out in Universal Postal Union treaty, the USPS in 2014 gets paid no more than about $1.50 for delivering a one-pound package from a foreign carrier, which makes it hard to cover costs. [1] The USPS inspector general’s office estimated that the USPS lost $79 million in fiscal year 2013 delivering this foreign treaty mail. (The Postal Service itself declined to provide specific figures.)

The Postal Service is losing millions a year to help you buy cheap stuff from China

USPS CHARGES about $33.00 for me to ship a 2 to 3 lb rug to the EU or Australia.....it is OUTRAGEOUS when the rug only sells for about $60!!!

Are you telling me these other countries are only charging the US $1.50 for them to get it to the customer? to ship the same weight, Priority Mail from here to California is only around $13 for the same weight range.....

Soooooooo, me thinks that USPS must be making a mint off of packages shipped overseas....??

 

[eagle1462010]

Fed Ex and UPS have claimed unfair contracts with Amazon...............

The USPS is still losing money.............overall ............and Amazon is getting unfair advantages over the competition who could also make the deliveries..................

Catch 22 these package deals are keeping the USPS alive.............push too far and they will be even in worse shape.

If it is unfair...why do they agree to them?

Gov't picking winners.........but if they raise the rates too much then the private companies will move in.......

It's all intertwined..........Trump is trying to renegotiate the rates to stop the USPS from losing money...........He always goes high and settles low.................

It's a strategy..............whether you see it or not..................

Hey Amazon if you don't pay more I'll double your rates.................causes some shit..........then they settle lower..........which was the goal in the first place.

 

[kiwiman127]

How Nixon of him.
Part of the Articles of Impeachment against Nixon, was his usage of the government machinery to fuck over his enemies.

Kinda like using the IRS against your enemies.

Oh, you mean like Nixon? Or more like the IRS under Bush and Obama?
In late September 2017, an exhaustive report by the Treasury Department's inspector general found that from 2004 to 2013, the IRS used both conservative and liberal keywords to choose targets for further scrutiny, blunting claims that the issue had been an Obama-era partisan scandal.[2][3
IRS targeting controversy - Wikipedia

 

[theHawk]

The Toxic Orange Turd has officially become more Nixonian than Nixon himself. Wonder if he has an Enemies List?

President Trump followed through on his frequent complaint that Amazon is costing the U.S. Postal Service "many billions of dollars" by urging the postmaster general to double the rate the U.S. Postal Service charges Amazon and other companies to ship their packages, the Washington Post reported Friday.

Citing three sources familiar with the conversations between U.S. Postmaster General Megan Brennan and President Trump, the Post also reported that Brennan has not acceded to the president's wishes for several reasons. For one, the Postal Service has binding contracts with these companies, and a regulatory commission would have to review those contracts. But she has also reportedly told Mr. Trump that the USPS relationship with Amazon is beneficial. In 2017, Postal Service revenues from private shippers including Amazon added up to $7 billion, Politifact noted.

If the rates were doubled, it would cost Amazon and private shippers billions, which would likely be passed on in the form of higher prices for shoppers.

The Post's sources said that Brennan and Mr. Trump have met on this issue several times beginning in 2017 and also had a meeting on it four months ago -- none of which appeared on Mr. Trump's public schedule.​

Trump has pushed postmaster general to double Amazon's shipping rates, report says

Apparently Trumpelthinskin is not only angry about WaPo's honest coverage of his presiduncey - Bezos suggested launching him into space ... a VERY fine idea!

Jeff Bezos on Twitter

Is it fair that a big business like Amazon gets discounted rates, while we have to pay double or triple the cost to ship the same package?

 

[theHawk]

How Nixon of him.
Part of the Articles of Impeachment against Nixon, was his usage of the government machinery to fuck over his enemies.

Like using the FBI and spy agencies to spy on your political opponent?

 

[candycorn]

The USPS has outlived its usefulness. Someday you old people may realize that.

Not true at all. Someday young people may realize this.
Specifically when dealing with "official or critical" information, you need a legally protected means of communication. For both sides.
But more than that is the enormous advertising benefits of mail. No other marketing strategy even remotely comes close to the success rate of targeted mail. None. It's not even up for debate.
Email/online advertising has the largest ROI due to the exceptionally high cost of direct mail, and the low cost of online. However the hit-rate is not even close. And depending on your needs, the direct mail option leaving would crush businesses everywhere.

UPS isn't going to go into the rural areas to deliver a package unless it absolutely has to. Much less do it for .50. Anyone who says the USPS is not needed is a fucking moron.

 

[candycorn]

The Toxic Orange Turd has officially become more Nixonian than Nixon himself. Wonder if he has an Enemies List?

President Trump followed through on his frequent complaint that Amazon is costing the U.S. Postal Service "many billions of dollars" by urging the postmaster general to double the rate the U.S. Postal Service charges Amazon and other companies to ship their packages, the Washington Post reported Friday.

Citing three sources familiar with the conversations between U.S. Postmaster General Megan Brennan and President Trump, the Post also reported that Brennan has not acceded to the president's wishes for several reasons. For one, the Postal Service has binding contracts with these companies, and a regulatory commission would have to review those contracts. But she has also reportedly told Mr. Trump that the USPS relationship with Amazon is beneficial. In 2017, Postal Service revenues from private shippers including Amazon added up to $7 billion, Politifact noted.

If the rates were doubled, it would cost Amazon and private shippers billions, which would likely be passed on in the form of higher prices for shoppers.

The Post's sources said that Brennan and Mr. Trump have met on this issue several times beginning in 2017 and also had a meeting on it four months ago -- none of which appeared on Mr. Trump's public schedule.​

Trump has pushed postmaster general to double Amazon's shipping rates, report says

Apparently Trumpelthinskin is not only angry about WaPo's honest coverage of his presiduncey - Bezos suggested launching him into space ... a VERY fine idea!

Jeff Bezos on Twitter

Is it fair that a big business like Amazon gets discounted rates, while we have to pay double or triple the cost to ship the same package?

Hmmm...

I seem to remember someone saying that paying less than their fair share on taxes "made them smart" during a debate.

Is it fair that Trump paid less than his fair share in taxes while we had to pay more to make up the shortfall?

If Bezos negotiated a deal for Amazon, that makes him smart; right?

 

[Care4all]

Fed Ex and UPS have claimed unfair contracts with Amazon...............

The USPS is still losing money.............overall ............and Amazon is getting unfair advantages over the competition who could also make the deliveries..................

Catch 22 these package deals are keeping the USPS alive.............push too far and they will be even in worse shape.

If it is unfair...why do they agree to them?

Gov't picking winners.........but if they raise the rates too much then the private companies will move in.......

It's all intertwined..........Trump is trying to renegotiate the rates to stop the USPS from losing money...........He always goes high and settles low.................

It's a strategy..............whether you see it or not..................

Hey Amazon if you don't pay more I'll double your rates.................causes some shit..........then they settle lower..........which was the goal in the first place.

But Amazon is not paying the shipping costs, the consumer is, so why not just be truthful and tell the American people that he wants them to pay more?