News & Research

Lexington Institute Postal Trendwatch -- April 2014

Executive Summary

The U.S. Postal Service (USPS) lost $354 million in Q1 FY 2014 -- the 19th money-losing quarter of the prior 21. Still, the loss represents a significant improvement over the $1.3-billion loss posted in the same period last year.

The Service's operating revenue grew $334 million, or 1.9 percent, relative to Q1 FY 2013, driven by growth in Shipping and Package services revenue and operational cost cuts totaling $574 million.

But this revenue growth was not enough to offset losses from declining First-Class Mail volume.

First-Class Mail consumers continue to pay a disproportionate share of institutional costs, contributing significantly to overhead in 2013 despite declining service quality. Stamp prices increased by 6 percent in January 2014, while prices for competitive products rose by 2.4 percent.

Articles in this Trendwatch include:

  • Monopoly Consumers Face Higher Rate Increases than Competitive Products Consumers
  • First-Class Consumers Contributing Heavily to Institutional Overhead
  • Monopoly Service Quality Declines
  • Postal Service Pilots New Competitive Package Services
  • New Investments on Technology Upgrades
To view the rest of The Lexington Institute's Postal Trendwatch, please download the PDF.

Index of Postal Freedom

What's New

Postal Service Breaks Its Silence on Criticism of Amazon Shipping Agreement

Sellers Deal with USPS Online Postage Crackdown

Postal Savings Bank (of China) Fined 500 Million Yuan

USPS Cronyism is Unaffordable for Shippers and Customers

President Trump Criticizes USPS-Amazon Relationship on Twitter

New Rules for Computer-Generated Postage Rile Some