Will privatisation of the US postal service raise the price of parcels to America?

23rd January 2020

President Trump is expected to push for the privatisation of America's postal service this year, says the USA parcel delivery specialist ParcelHero.

Can he get this done by the 2020 election, and will a privatised US postal service mean big changes for UK shippers to the USA?

President Trump has set his sights on privatising the United States Postal Service (USPS) says ParcelHero, the UK-based specialist in USA parcel delivery. It believes that, with America's current Postmaster General retiring this month, the path is set for Trump to appoint a pro-privatisation postal boss to push for the break-up of the service.

Says ParcelHero's Head of Consumer Research, David Jinks MILT: ‘Trump believes the majority of the USPS should be privatised. Right at the start of his Presidency he commissioned a report which claimed "A privatized Postal Service would have a substantially lower cost structure". And Trump has made it clear that he is furious with the USPS for - in his eyes - undercharging Amazon for parcel deliveries. Remember, Amazon is owned by Jeff Bezos, who also owns the Washington Post, a newspaper leading the criticism of Trump's administration.''

Trump said in one of his famous Tweets: ‘Why is the United States Post Office, which is losing many billions of dollars a year, while charging Amazon and others so little to deliver their packages, making Amazon richer and the Post Office dumber and poorer? Should be charging MUCH MORE!'

Explains David: ‘The current US Postmaster General has disputed Trump's allegations about Amazon charges and fought hard to keep the USPS as a Government service, but when she retires this month her successor will be chosen by the Postal Service Board of Governors, which has a Trump-appointed majority. That clears the way for a pro-privatisation postal boss who would be highly likely to, at the very least, end the delivery of parcels by the USPS; something called for in Trump's report, and which supporters of privatisation say could easily be taken over by existing courier networks.’

Adds David: ‘ParcelHero's constantly updated USA parcel delivery guide

will keep shippers up to speed with any changes to US deliveries. If Trump is successful in starting the breakup of the near 250-year-old US postal service this year, in our analysis it’s unlikely to have a major impact on UK to USA parcel delivery by courier. However, for those people still using their local Post Office to mail letters and parcels to America, it could have a significant effect and potentially raise prices. If a privatised USPS is no longer legally required to fulfil a universal service, the cost of postal deliveries to rural areas could rise considerably.’

Concludes David: ‘The USPS is a popular institution; a survey last year found 90% of Americans approve of it. However, there is no doubt the USPS is facing the same problems as UK Post Offices, with its staple bread-winner, first class mail, collapsing by nearly half since 2001; as well as a massive pensions obligation. Some reform is inevitable; and if Trump has his way that looks likely to mean the end of parcels delivery by traditional postal services in the US; especially if he wins a second term in office later this year.’

You can find out the latest information on US deliveries; including the latest on USPS restructuring and price changes, at https://www.parcelhero.com/en-gb/international-courier-services/usa-parcel-delivery