The Postal Accountability and Enhancement Act of 2006 (PAEA) changed the way the Postal Service sets rates. It divided postal services into two broad categories: market dominant (mailing services) and competitive (shipping services). Market dominant products constitute about 90 percent of postal revenue. They include First-Class Mail, Standard Mail, Periodicals, and some Package Services. Products such as Priority Mail, Express Mail, and bulk Parcel Post are considered competitive. The PAEA placed a cap on price increases for market dominant products.
Service might be in its name, but transportation is a major part of its game. If there was ever any doubt about how essential transportation is to the U.S. Postal Service’s operations, take a look at the list of the USPS’ top suppliers for fiscal year 2016. Five of the top 10 provide...Read More