With Christmas and other similar festivities slowly on the approach, USP strikes at USPS in accordance with the coming holidays. The strike in question is a formal petition towards the federal government in order to stem the USPS’s current move of shipping e-commerce packages.
The shipping company USP claims that the United States Postal Service is not currently satisfied with its monopoly on letter mail deliveries, using their First Class mailing service to subsidize package shipping. This is viewed as a direct attack towards private shipping companies and it is claimed by USP to be illegal.
This illegality comes from the alleged breaking of the PEAE, the Postal Accountability and Enhancement Act signed in 2006. By gaining a higher degree of freedom towards pricing points, USPS is moving towards new grounds, focusing on shipping online-bought packages as well as their usual postal services.
Even if USP claims that this counterattack towards USPS will not affect shipping prices, in general, making them increase substantially in the near future, this outcome is likely to happen if the petition is acted upon.
This petition comes at a rather strategic time for USP, considering that the amount of deliveries it will have to make in the coming weeks, along with Fed-Ex as well as other shipping companies, will be staggering. If the alleged USPS illegality is proven to be true or false, this will mean either that a new competitor will enter the fray or it will simply switch its focus back on their usual services.
The USPS has already scheduled a hike in prices in the early weeks of next year, on January 17th, as well as a removal of the discounted Commercial Plus category. The company gains income through the delivery of competitive products, products which are not subsidized by market-dominant products, along with letter mail deliveries.
The spokesman of the postal service company, David Partenheimer, has stated that USPS will contest the petition pushed by USP in a strong manner. USPS is not actively targeting a larger base in the package delivery market, it still maintains a focus on their usual delivery service.
The public masses could have seen the new move from USPS as a relief from the current struggle of keeping shipping dates of companies like USP relatively low. Having another trust-worthy company join the market, if an increase in price is not accompanied by it, would have relieved the pressure created by the increased popularity of online shopping sprees, especially in the holiday season.
Even though USP strikes at USPS in accordance with the coming holidays, with both companies maintaining a strong position in this conflict, only a federal decision will decide if USPS should back down or not. Either way, shipping prices will still go up, unfortunately. If one would add to that the current struggle with a decrease in income, the odds that the nation might face some problems in the next months of the new year will increase substantially.