You may have seen, back in March, that the USPS published a 10-year strategic plan to achieve financial stability and service excellence. This plan includes adjusting the current 1–3-day continental U.S. First-Class delivery standard to 1-5 days. These changes are expected to be rolled out on October 1. In theory, the USPS expects this change to not only allow them to better meet delivery standards, which they’ve failed to meet over the past 8 years but also reduce their cost of delivering First-Class mail.
The summary of the proposed service change is as follows: mail that is currently delivered within 1 day (3-hour drive time from entry to delivery point) will not change. However, they are proposing stretching the 2–3-day delivery period out to 2-5 days.
The chart below compares the current 2–3-day service standard against the proposed service standard. Ultimately, 81% of the current 2-day volume should keep a 2-day standard, with the remaining 19% flowing into 3-days. The current 3-day volume would be changed to 3-5 days, with 47% remaining the same, 36% going to 4-days, and the remaining 17% changing to 5-days.
Basically, 70% of current 1–3-day delivery would remain the same and 30% would be adjusted to 4 or 5-day delivery based on distance and destination-cost-impact.
Between March and July, the USPS requested the US Postal Regulatory Commission consider the proposed service standard change which was completed and released on July 20, 2021. In summary, the Commission did find that extending the service standards would help the USPS meet delivery requirements but is concerned that the USPS has not tested their theory and thus they are lacking supporting evidence that they can operationally make these changes and have the overall expected service and financial impact.
Additionally, the Commission did not find that changing the service standards would have any financial impact, especially without supporting evidence. The USPS doesn’t need the Commission’s approval to change service standards. Kim Frum, USPS spokeswoman, said they are “reviewing the recommendations of the Postal Regulatory Commission, and will consider them as we move forward with our plan”. This statement further insinuates that the USPS will move ahead with their plans, despite the Commission’s findings, on September 1, 2021.