The Road to a New Delivery Fleet

What should the postal vehicle of the future look like? The U.S. Postal Service recently put that question to its carriers and vehicle maintenance personnel and is currently reviewing the feedback. It’s an important question because the delivery fleet is aging and the Postal Service needs to quickly replace it. In fact, our recent audit on the topic found the current fleet can only meet delivery needs through fiscal year 2017 – and that assumes no unexpected decrease in vehicle inventory or increase in the number of motorized routes.


Can the Postal Service Deliver the Goods?

The 2013 holiday season turned out to be a particularly eventful one for e-tailers and the shippers that deliver all those packages to your door.

Factors like fewer than average shopping days between Thanksgiving and Christmas and an increasing comfort level with online buying helped push holiday e-commerce up significantly. In fact, demand exceeded expectations and stressed shippers’ capacity, causing some late deliveries of their goods.  


It’s a Bird, It’s a Plane, It’s . . . Your Package?!?

Today’s consumers are a demanding bunch – expecting to get what they want precisely when and where they want it.

These changing expectations are putting the pressure on both brick and mortar retailers as well as online retailers. Pressure grows to deliver goods faster, cheaper, and with more flexibility. Now, customers expect free shipping and overnight delivery or, in some cities, same-day delivery.

It seems same-day delivery might not be fast enough for some. is toying with the idea of delivering packages within 30 minutes – via drone.


Not All Flat Rates are Equal - - Even if They Look Like it

Imitation is the sincerest form of flattery, they say. Maybe so. It’s just not usually FedEx that is doing the imitating or the flattering. But with its new “simple and predictable” flat rate shipping option, FedEx seems to be trying to look like the U.S. Postal Service in one particular way.

The FedEx One Rate bears more than passing resemblance to the popular Priority Mail Flat Rate, suggesting FedEx is shifting strategy to become more aggressive in the light-weight retail package segment it once largely ceded to the Postal Service.


Fall Mailing Season Gets Rolling

This is the time of year when retailers, nonprofit organizations, and other mailers step up their holiday advertising mailing campaigns. Volume spikes in this period, known as the fall mailing season, which then gives way to the even-busier holiday mailing season, when personal correspondence and packages spike. The U.S. Postal Service makes most of its money for the year in the period between Labor Day and Christmas.


Great Expectations of Online Shopping

As online shopping has become the norm for many Americans, it has brought operational changes to both brick-and-mortar retailers and online retailers. Shipping costs are now a major consideration for companies. Retailers are working to control their shipping costs as their ebusiness grows, with the traditional retailers relying on their extensive network of stores to reduce shipping costs. Instead of shipping goods from centralized warehouses to far-flung customers, major retailers, such as Wal-Mart, Best Buy, and Gap Inc., deliver from stores close to their customers whenever possible.


Charging for a New Address?

The U.S. Postal Service adds more than 600,000 new delivery points each year, mostly in the form of new residential homes. While most new residences include cluster boxes rather than to-the-door delivery to reduce costs, delivery remains the Postal Service's largest cost center. Canada Post, which has suffered losses recently after years of profits, has introduced a $200 per address charge that it is assessing housing developers for installing community mailboxes.