The Postal Accountability and Enhancement Act of 2006 (PAEA) changed the way the Postal Service sets rates. It divided postal services into two broad categories: market dominant (mailing services) and competitive (shipping services). Market dominant products constitute about 90 percent of postal revenue. They include First-Class Mail, Standard Mail, Periodicals, and some Package Services. Products such as Priority Mail, Express Mail, and bulk Parcel Post are considered competitive. The PAEA placed a cap on price increases for market dominant products.
Nearly a decade since its rollout, the Flats Sequencing System (FSS) — the football-field sized sorting machines for flats mail — is still falling short of expectations. At its inception, stakeholders were optimistic FSS would improve productivity and reduce the U.S. Postal Service’s costs for...Read More