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The U.S. Postal Service has emerged, bloodied and more than a bit bowed, from the most difficult year in its long history. But beyond the COVID-19 pandemic, the presidential election and the tussles with former President Donald Trump lies an existential crisis for the Postal Service: how to remain viable when most of the macro-trend winds are blowing in its face.
First-class and marketing mail, the traditional cores of the Postal Service, continued their secular declines in 2020, a downward trajectory accelerated by the pandemic. The shipping and package business is currently the lone bright spot, and to capitalize on its growth and offset the costs of processing and delivering parcels, the Postal Service implemented a series of rate increases on shipper-centric products. The increases, which took effect Jan. 24, will reduce, through not eliminate, the Postal Service s low-price proposition that e-merchants depend on to offer low- or no-cost shipping to end customers.
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FedEx flexes price power with surcharges extending past January
Thomas Black, Bloomberg News A driver for an independent contractor to FedEx Corp. wearing a protective mask unloads a Ground truck in Chicago, Illinois, U.S., on Monday, Nov. 30, 2020. Online shoppers in the U.S. are expected to drop a record-busting $12.7 billion on Cyber Monday the busiest e-commerce day of the year presenting a valuable opportunity for retailers whose websites, customer service departments and delivery operations can withstand the period of crushing traffic. Photographer: Christopher Dilts/Bloomberg , Bloomberg
FedEx Corp. is indefinitely extending some surcharges amid soaring package volume and rising delivery costs, pushing its pricing power further into 2021.
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