Will privatisation of the US postal service raise the price of parcels to America?

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President Trump has set his sights on privatising the United States Postal Service (USPS) says ParcelHero, the UK-based specialist in USA parcel delivery. It believes that, with America’s current Postmaster General retiring this month, the path is set for Trump to appoint a pro-privatisation postal boss to push for the break-up of the service.

Says ParcelHero’s Head of Consumer Research, David Jinks MILT: ‘Trump believes the majority of the USPS should be privatised. Right at the start of his Presidency he commissioned a report which claimed  “A privatized Postal Service would have a substantially lower cost structure”. And Trump has made it clear that he is furious with the USPS for – in his eyes – undercharging Amazon for parcel deliveries. Remember, Amazon is owned by Jeff Bezos, who also owns the Washington Post, a newspaper leading the criticism of Trump’s administration.’’

Trump said in one of his famous Tweets: ‘Why is the United States Post Office, which is losing many billions of dollars a year, while charging Amazon and others so little to deliver their packages, making Amazon richer and the Post Office dumber and poorer? Should be charging MUCH MORE!

Explains David: ‘The current US Postmaster General has disputed Trump’s allegations about Amazon charges and fought hard to keep the USPS as a Government service, but when she retires this month her successor will be chosen by the Postal Service Board of Governors, which has a Trump-appointed majority. That clears the way for a pro-privatisation postal boss who would be highly likely to, at the very least, end the delivery of parcels by the USPS; something called for in Trump’s report, and which supporters of privatisation say could easily be taken over by existing courier networks.’

Adds David: ‘ParcelHero’s constantly updated USA parcel delivery guide will keep shippers up to speed with any changes to US deliveries. If Trump is successful in starting the breakup of the near 250-year-old US postal service this year, in our analysis it’s unlikely to have a major impact on UK to USA parcel delivery by courier. However, for those people still using their local Post Office to mail letters and parcels to America, it could have a significant effect and potentially raise prices. If a privatised USPS is no longer legally required to fulfil a universal service, the cost of postal deliveries to rural areas could rise considerably.’

Concludes David: ‘The USPS is a popular institution; a survey last year found 90% of Americans approve of it. However, there is no doubt the USPS is facing the same problems as UK Post Offices, with its staple bread-winner, first class mail, collapsing by nearly half since 2001; as well as a massive pensions obligation. Some reform is inevitable; and if Trump has his way that looks likely to mean the end of parcels delivery by traditional postal services in the US; especially if he wins a second term in office later this year.’

You can find out the latest information on US deliveries; including the latest on USPS restructuring and price changes, at  https://www.parcelhero.com/en-gb/international-courier-services/usa-parcel-delivery