The massive government-run US Postal Service is about to become even slower and more expensive.
USPS is introducing new “service standards” for First Class Mail and Periodicals that will affect mail traveling long distances. That means that some letters and packages that travel long distances might travel up to five days, instead of two or three days.
Meanwhile, consumers will pay more for that slower service. The cost of postage on a first class letter is going up 6.8%, while the package service is increasing 8.8%. Effective Friday, the cost of a stamp will increase to $0.58 from its current $0.55.
The change is effective on Friday and part of the plan to overhaul the agency, and tackle its huge debt.
The massive federally-owned company is in trouble; it has more than 600,000 employees, a massive budget and is hemorrhaging cash. It lost $9.2 billion in 2020 alone. Between 2007 and 2020 it lost $78 billion.
And then there’s the issue of timeliness…
An estimated 20% of first-class mail in the United States arrived late during the first quarter of 2021.