According to filings with the Postal Regulatory Commission, USPS estimates revenue from its shipping and parcel segment will increase by 9,4% year-over-year. This growth is driven by services like Ground Advantage, which focuses on ground delivery for general customers, and Parcel Select, designed for businesses or e-commerce entities with high volumes. This anticipated increase is expected to contribute to a 2,9% rise in the unit's total revenue for fiscal year 2026, which begins on October 1.
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A U.S. Postal Service employee delivers mail in Miami, Florida. Photo: Supply Chain Dive. |
Conversely, the company projects a 42% decrease in international mail and parcel revenue, with inbound services, which handle incoming goods, information, or requests for businesses, seeing a 56% reduction. While the filings do not specify the reasons, many international postal providers have reported a drop in shipments to the U.S. since the Trump administration repealed the de minimis tax exemption.
This new forecast indicates USPS is placing greater expectations on its delivery segment compared to fiscal year 2025. In the previous year, parcel revenue increased by only 1%, while volume decreased by 5,7%. Ground Advantage remained a bright spot, but declines in Priority Mail, an express delivery service, and other parcel services pulled overall results down.
Following the release of its FY2025 financial results, USPS Director David Steiner stated that the agency is pursuing a strategy to boost delivery segment growth and enhance its appeal to businesses for first mile - last mile services. USPS is also considering price adjustments in January to improve revenue.
Concurrently, USPS projects a 1,1% reduction in total employee work hours for 2026. This is attributed to initiatives aimed at improving operational efficiency and human resource management, as system-wide mail and parcel volumes are expected to continue declining by 6,6%.
Reducing labor costs has been a consistent goal for USPS. Last August, nearly 10,500 of the agency's employees accepted early retirement offers.
By The Dan (Source: Supply Chain Dive)
