The Postal Service lost $2.8 billion in fiscal year (FY) 2008. This year, the Postal Service is concerned its loss could grow to $6 billion or more. Since the Postal Service is limited by law from borrowing more than $3 billion per year and the Postal Service started 2009 with only $1.4 billion cash on hand, there is a danger the Postal Service could face a liquidity problem as payroll and benefits alone are about $54 billion a year.
The holidays might be over but the package returns season is in high gear. It kicked off in mid-December, shortly after the first wave of holiday deliveries, and is expected to run through most of this month.
Returns track with the online retail market — as shopping online grows, so, too...Read More