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Tuesday, September 06, 2011

U.S. POSTAL SERVICE WARNS IT COULD DEFAULT

The Postal Service reported an increase in revenues in certain areas:
-Standard mail revenue increased by 1.7%
-Package services increased by 3.2%
- Shipping services such as Express and Priority Mail increased by 7.3%
Inspite of the increased revenue, it still reported a $3.1 billion loss for the 3rd quarter and it will likely default on its payment to the federal government.

According to current revenue estimated, the Postal Service will be unable to make $5.5 billion paynment to its retirement fund taht is due this month. Unless Congress takes action, such as waiving the payment, it will have no choice but to default on its payment.

In an attempt to cut back on spending, the USPS plans to study almost 3,700 under-utilized post offices for possible closure and introduced the new village post office concept. Under the village post office model, postal services would be handled by local businesses, such as pharmacies and grocery stores.

For more info, you can visit http://about.usps.com/news/national-release/2011/pr_094.htm

posted by daisy at 4:11 PM - permalink 0 comments

Small Business Reading Room

U.S. POSTAL SERVICE WARNS IT COULD DEFAULT

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