StockMarket.News
2025.11.15 23:34

The USPS just reported a $9 billion loss for fiscal 2025 with a 5.7% parcel volume drop. Most people see this and think okay, the post office is losing package business to Amazon and FedEx but no that's only part of the reason.

USPS controls roughly a third of the parcel market by volume but only captures 17% of the industry's revenue. Theyre printing massive volume while getting paid like a discount carrier. UPS and FedEx are printing money on the high margin stuff while USPS is stuck doing the volume plays. Meanwhile they're also saddled with mandatory pension funding obligations that their commercial competitors don't have to deal with. Since 2007, USPS has accumulated over $100 billion in cumulative losses. The agency spends $9.30 for every dollar it brings in.​

The attempted fixes have backfired spectacularly. They raised stamp prices 46% since 2019 yet mail volume still hit its lowest level since 1967. They've cut transportation costs and incentivized early retirements but operating expenses are still climbing year over year despite all of it. The controllable loss actually surged from $1.8 billion to $2.7 billion a $900 million deterioration.​

Congress has also pumped over $160 billion into USPS through various bailout, pandemic relief grants and debt transfers rather than actually fixing the underlying business model. They won't officially convert USPS to a publicly funded utility so it's trapped between trying to operate like a business and delivering universal service to every address in America. That's an impossible mandate.

At this point, what do we even do to fix any of this?

Source: StockMarket.News

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