National Etailing and Mailing Organization of America
NEMOA | News Detail
ACMA Alert: USPS Backs Off Move to 5-Day Delivery

Industry Alert:
With No Action From Congress on Costs,
USPS Board Announces Abandonment
Of 5-Day Delivery For Now

Dear Industry Member:


The USPS’s Board of Governors announced this morning their decision to not proceed with a move to five-day delivery of non-parcel mail in August 2013, as previously announced.

This decision was made given the Continuing Resolution recently passed through Congress directing the USPS to maintain six-day delivery for all mail. As a consequence, given the persistent low liquidity of the agency, the Board has directed management to review and consider all available options to reduce costs or increase revenue. This specifically also includes an exigent rate case, as I learned from a USPS officer today.

The Board’s prepared statement noted the following:

The Board continues to support the transition to a new national delivery schedule…It is not possible for the Postal Service to meet significant cost reduction goals without changing its delivery schedule – any rational analysis of our current financial condition and business options leads to this conclusion. Delaying responsible changes to the Postal Service business model only increases the potential that the Postal Service may become a burden to the American taxpayer, which is avoidable.

Click here for the complete statement.

Though not surprising, this should be viewed as awful news for mailers. ACMA was an early and vocal supporter of a reduction in delivery days, specifically to avoid the necessity for increased postal rates. The USPS estimates the delivery day cut-back would save $2 billion annually, but other mailing interests have been resolute that six-day service must be preserved.

ACMA Proposal
ACMA believes that perhaps it is time to charge those segments of the mail with the cost of maintaining the sixth day of delivery if it is required by their business practices. Catalogs neither require nor want to pay for this considerable expense; additional increases in postage costs will only further degrade catalog volumes.

ACMA is calling on all those with catalog interests to communicate loudly and clearly to their Members of Congress that this is untenable. Congress must act to address persistent red ink by giving the Postal Service the cost flexibility it needs to size its infrastructure appropriately for current and expected future declines in mail volume - volume losses, which will only be accelerated after an exigent rate case.

Get Active Now
If there were ever a time to get involved in managing the catalog industry’s external affairs, it is NOW. Besides contacting your Members of Congress, please contact us to find out how you can help further.



Hamilton Davison
President & Executive Director
American Catalog Mailers Association
Direct: 401-529-8183



© 2013 American Catalog Mailers Association, Inc. You are encouraged to pass this message on to others in the catalog industry.

Published: 04/10/13