The U.S. Postal Service will slow delivery times for nearly a third of first-class packages as it tries to cut costs and lessen its reliance on air travel, The Wall Street Journal reported Monday (April 18).
The service standards will come into effect on May 1.
This will eventually add up to a day or two of delay for some packages that travel longer distances.
Most parcel delivery times will not be affected – and some of them could arrive a day earlier. Changes in delivery times are part of the plan to reduce projected losses of more than $160 billion over the next decade.
The plan was rolled out by Postmaster General Louis DeJoy last year – who called for slower delivery times, higher shipping rates and more deliveries overall.
“This action will aid our cost reduction efforts and improve our reliability across all product classes, including our growing packaging market,” DeJoy said Monday.
The report notes that slower delivery speeds will help the Postal Service add more trains and trucks to transport packages, rather than using the more expensive overhead network, which it says also has more reliability issues. .
The plan has drawn skepticism from the Postal Regulatory Commission, which said last year the cost savings may be overstated and the proposal may not really affect the overall financial picture.
“At this time, the Postal Service has not demonstrated that it can achieve reliability, efficiency and economy in its service standard changes,” the federal watchdog said.
See also: E-commerce company ESW launches partnership with UPS
In other news related to package delivery services, PYMNTS wrote recently that ESW, a direct-to-consumer e-commerce company, has partnered with UPS, which will provide integrated international e-commerce and shipping.
Patrick Bousquet-Chavanne, President and CEO of ESW in the Americas, said the opportunity to “obtain a single solution that combines ESW’s technology and deep localization expertise with the extensive logistics network and UPS shipping will give direct-to-consumer retailers better access to consumers globally.