How a Postal Service Power Shift Could Impact Logistics

Earlier this year, President Donald Trump announced his administration is considering dissolving the U.S. Postal Service’s (USPS) independent governing board and transferring oversight to the Commerce Department.

This shift, viewed by some as a “federal takeover,” aims to address financial struggles and operational inefficiencies. For supply managers at brick-and-mortar and e-commerce businesses, the change could impact delivery reliability, cost structures and long-term logistics strategies.

The USPS has faced ongoing financial difficulties, reporting a US$9.5 billion net loss in fiscal year 2024. Postmaster General Louis DeJoy, who implemented the “Delivering for America” plan to modernize operations, recently announced his resignation. Declining mail volumes and regulatory burdens have strained revenue, while rising operational costs widen the financial gap.

Among the operational and service dynamics that would impact businesses and supply management organizations:

Service reliability. Changes in governance could affect universal service obligations, particularly in rural areas, impacting delivery speed and consistency.

Technology upgrades. Investments in automated sorting, digital tracking and last-mile logistics may continue, enhancing efficiency for e-commerce businesses.

Pricing adjustments. Potential rate changes could influence shipping costs, prompting retailers to reconsider pricing strategies.

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Consecutive years the intersection of Interstate 95 and State Route 4 near the George Washington Bridge in Fort Lee, New Jersey, has been rated the top freight bottleneck in the country, according to the Top Truck Bottleneck List by the Arlington, Virginia-based American Transportation Research Institute (ATRI).

Texas leads all states with 12 entries on the list, which is based on freight truck GPS data. Georgia (nine) is next, followed by California (eight). 

These traffic bottlenecks not only choke our supply chains, adding (US)$109 billion annually to the cost of transporting the everyday goods that Americans depend on, but they also impact the quality of life for all motorists who rely on the national highway system to commute to work, school, church and other life events.”

— CHRIS SPEAR
American Trucking Associations president and CEO

Logistics grade: Known as the “Emerald Isle,” Ireland serves as a vital gateway for global trade and distribution. It tied for 26th in the 2023 Logistics Performance Index by The World Bank, thanks in part to its strategic location that connects North America, Europe and Africa, as well as enables efficient freight movement via sea and rail.

Infrastructure: Lawmakers planned to use an unexpected US$15.1 billion windfall from Apple’s back taxes last year to close what has been labeled an “infrastructure gap.” Investment plans include projects for water, energy and housing. However, critics point to delays in key projects, including a long-awaited metro transportation system.

The customs house: How critical is Ireland’s logistics sector to its economy? Its government designates an annual Logistics and Supply Chain Skills Week — this year, March 31-April 5 — replete with an information sheet stating that Ireland exports about $212 billion in goods annually, and more than 47.5 million tons of shipments were handled at Irish ports in 2023.

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