The Effects of the USPS Losses | Lojistic [ ](https://www.lojistic.com)- Why Lojistic - [ All Inclusive. Zero Cost. Every Lojistic solution. No limits. No fees. ](https://www.lojistic.com/pricing) - [ All Modes. All Carriers. All Currencies. Parcel, LTL, truckload, ocean, rail, air freight. ](https://www.lojistic.com/carrier-connectors) - [ Industries Served Retail, eCommerce, 3PL, manufacturing, and more. ](https://www.lojistic.com/industries-served) - [ Roles Most Impacted & How Supply chain & logistics, procurement, finance leaders. ](https://www.lojistic.com/roles-most-impacted) - [ Use Cases How Lojistic helps manage and reduce shipping costs. ](https://www.lojistic.com/use-cases) - Platform Features - [ Global Analytics & Reporting Predictive analytics and scenario modeling for all carriers globally. ](https://www.lojistic.com/shipping-analytics-software) - [ Rate Optimization & RFPs Tech-powered data prep, strategy, and rate impact analyses. ](https://www.lojistic.com/rate-optimization-rfps) - [ Parcel and Freight Audit & Payment *+PAY* Carrier refunds and payments automated and made simple. ](https://www.lojistic.com/freight-audit-and-payment) - [ GL Coding & ERP Sync Automatically code shipping costs down to the order level ](https://www.lojistic.com/gl-coding-erp-sync) - [ Lojistic API & App Integrations Easily integrate normalized shipping data to your business systems. ](https://www.lojistic.com/api-app-integrations) - [Pricing](https://www.lojistic.com/pricing) - [About](https://www.lojistic.com/about) - [Company](https://www.lojistic.com/company) - [Culture](https://www.lojistic.com/culture) - [Careers](https://www.lojistic.com/careers) - [Partner Programs](https://www.lojistic.com/partner-programs) - [Security](https://www.lojistic.com/security) - [Media](https://www.lojistic.com/media) - [Ratings & Review](https://www.lojistic.com/reviews) - [Videos](https://www.lojistic.com/videos) - [Blog](https://www.lojistic.com/blog) - [Contact](https://www.lojistic.com/contact) - [ Login](https://app.lojistic.com/demo/account/login?trackDemo=false) - [View Demo](https://app.lojistic.com/demo) - [Create Free Account](https://app.lojistic.com/demo/connect-carrier?activeStep=create-account&trackDemo=false) [ ](https://www.lojistic.com) [Create Free Account](https://app.lojistic.com/demo/connect-carrier?activeStep=create-account&trackDemo=false) mobile navigation toggle - Why Lojistic - [ All Inclusive. Zero Cost. Every Lojistic solution. No limits. No fees. ](https://www.lojistic.com/pricing) - [ All Modes. All Carriers. All Currencies. Parcel, LTL, truckload, ocean, rail, air freight. ](https://www.lojistic.com/carrier-connectors) - [ Industries Served Retail, eCommerce, 3PL, manufacturing, and more. ](https://www.lojistic.com/industries-served) - [ Roles Most Impacted & How Supply chain & logistics, procurement, finance leaders. ](https://www.lojistic.com/roles-most-impacted) - [ Use Cases How Lojistic helps manage and reduce shipping costs. ](https://www.lojistic.com/use-cases) - Platform Features - [ Global Analytics & Reporting Predictive analytics and scenario modeling for all carriers globally. ](https://www.lojistic.com/shipping-analytics-software) - [ Rate Optimization & RFPs Tech-powered data prep, strategy, and rate impact analyses. ](https://www.lojistic.com/rate-optimization-rfps) - [ Parcel and Freight Audit & Payment *+PAY* Carrier refunds and payments automated and made simple. ](https://www.lojistic.com/freight-audit-and-payment) - [ GL Coding & ERP Sync Automatically code shipping costs down to the order level ](https://www.lojistic.com/gl-coding-erp-sync) - [ Lojistic API & App Integrations Easily integrate normalized shipping data to your business systems. ](https://www.lojistic.com/api-app-integrations) - [Pricing](https://www.lojistic.com/pricing) - [About](https://www.lojistic.com/about) - [Company](https://www.lojistic.com/company) - [Culture](https://www.lojistic.com/culture) - [Careers](https://www.lojistic.com/careers) - [Partner Programs](https://www.lojistic.com/partner-programs) - [Security](https://www.lojistic.com/security) - [Media](https://www.lojistic.com/media) - [Ratings & Review](https://www.lojistic.com/reviews) - [Videos](https://www.lojistic.com/videos) - [Blog](https://www.lojistic.com/blog) - [Contact](https://www.lojistic.com/contact) [Create Free Account](https://app.lojistic.com/demo/connect-carrier?activeStep=create-account&trackDemo=false) [View Demo](https://app.lojistic.com/demo) [ Log In](https://app.lojistic.com/demo/account/login?trackDemo=false) The Effects of the USPS Losses ============================== ![Icon denoting blog author information in Lojistic’s content layout](/images/pages/blog/icon-author.svg)Rich Harkey ![Calendar icon used to display blog post dates on Lojistic’s website](/images/pages/blog/icon-calendar.svg)April 02, 2012 2012 has been a busy year for the shipping industry both in big news items. Such events as the 2012 shipping rate increase has already affected many businesses’ budget plans for the year while floods and earthquakes in 2011 has shaken up many companies to look deeper into their risk management programs to create a viable Plan B. An interesting piece of news that will only, most likely, grow bigger as the year continues is the United States Postal Service (USPS) budget crisis. USPS has been losing money for a long period of time from a $5.1 billion operator loss for the 2011 fiscal year and a $3.2 billion loss for the first quarter of 2012. They expect to default on retiree health benefits to the government this year and could hit their $15 billion debt ceiling by the end of the year. [![]()](https://www.lojistic.com/smarter-rate-optimization-rfps/ltl-ftl-freight-marketplace) Why is this important to note for those that don’t use USPS for their shipping? There are many implications and shipping aspects that could potentially affect the other carriers along with customers. One of these effects deals directly with FedEx which has a direct contract with the USPS to move First Class, Priority, and Express by air. Most likely, analysts are predicting a substantial cut when it’s contract is up for renewal. This change could result in a possible power play by UPS for more share or have the air freight change to ground services instead, resulting in a different revenue stream. For customers, both shippers and receivers, expect both price fluctuations from the carriers and possible service extensions or cuts. The USPS, for instance, is expecting to cut Saturday service, which would divert customers more to the major carriers and an increased traffic. It will be more important than ever for consumers to make sure they are reviewing their invoices and negotiating appropriate deals. Even with all these changes, one important lesson for any shipper to keep in mind is to always be open-minded and knowledgeable about the options you have in shipping and ways that will financially benefit your company. For instance, our company always stays abreast of the changing shipping field and which rates and discounts are available for businesses. Stay connected with [Source](https://www.lojistic.com/) as we continue to analyze and watch shipping news along with ways we can continue to help you [reduce your shipping costs](https://www.lojistic.com/rate-optimization-rfps). Make sure to ‘Like’ us on [Facebook](https://www.facebook.com/ConsultSource) and ‘Follow’ us on [Twitter](http://twitter.com/consult_source)! ![Rich Harkey Headshot](https://www.lojistic.com/assets/public/users/rich.png) Author Rich Harkey Rich Harkey Senior Strategy Manager Rich Harkey is a results-driven professional with extensive experience in the logistics and supply chain industry. As the Senior Strategy Manager at Lojistic, Rich leverages over three decades of expertise to help businesses improve their shipping strategies and reduce costs. With a deep understanding of the requirements of shippers and the operational intricacies of carriers, he excels in everything from optimizing business rules and managing carrier invoices to negotiating carrier contracts. Rich's comprehensive knowledge of the logistics industry, combined with his strategic insights and passion for data analysis, has enabled thousands of companies to gain visibility into their shipping expenses, driving impactful results. [« Previous Post](/blog/helping-reduce-shipping-with-your-help) [Next Post »](/blog/integrating-transportation-software-and-technology-to-reducing-shipping-costs) **Lojistic Blog** [Recent Posts](https://www.lojistic.com/blog) | [Categories](https://www.lojistic.com/blog/categories) Why Lojistic ---------------- - [All-Inclusive. Zero Cost. ](https://www.lojistic.com/pricing) - [All Modes. All Carriers. All Currencies ](https://www.lojistic.com/carrier-connectors) - [Industries Served ](https://www.lojistic.com/industries-served) - [Roles Most Impacted & How ](https://www.lojistic.com/roles-most-impacted) - [Use Cases ](https://www.lojistic.com/use-cases) Platform Features --------------------- - [Global Analytics & Reporting ](https://www.lojistic.com/shipping-analytics-software) - [Rate Optimization & RFPs ](https://www.lojistic.com/rate-optimization-rfps) - [Parcel and Freight Audit & Payment +PAY ](https://www.lojistic.com/freight-audit-and-payment) - [GL Coding & ERP Sync ](https://www.lojistic.com/gl-coding-erp-sync) - [Lojistic API & App Integrations ](https://www.lojistic.com/api-app-integrations) Pricing ----------- - [Everything Included – Free Recommended](https://www.lojistic.com/pricing) - [À La Carte Plan ](https://www.lojistic.com/pricing#a-la-carte) Resources ------------- - [White Paper ](https://www.lojistic.com/white-papers) - [FAQ ](https://www.lojistic.com/shipping-faqs) - [Security ](https://www.lojistic.com/security) About --------- - [Culture ](https://www.lojistic.com/culture) - [Careers ](https://www.lojistic.com/careers) - [Partner Programs ](https://www.lojistic.com/partner-programs) - [Ratings & Reviews ](https://www.lojistic.com/reviews) - [Videos ](https://www.lojistic.com/videos) - [Blog ](https://www.lojistic.com/blog) - [Contact Us ](https://www.lojistic.com/contact) Why Lojistic- [All-Inclusive. Zero Cost. ](https://www.lojistic.com/pricing) - [All Modes. All Carriers. All Currencies ](https://www.lojistic.com/carrier-connectors) - [Industries Served ](https://www.lojistic.com/industries-served) - [Roles Most Impacted & How ](https://www.lojistic.com/roles-most-impacted) - [Use Cases ](https://www.lojistic.com/use-cases) Platform Features- [Global Analytics & Reporting ](https://www.lojistic.com/shipping-analytics-software) - [Rate Optimization & RFPs ](https://www.lojistic.com/rate-optimization-rfps) - [Parcel and Freight Audit & Payment +PAY ](https://www.lojistic.com/freight-audit-and-payment) - [GL Coding & ERP Sync ](https://www.lojistic.com/gl-coding-erp-sync) - [Lojistic API & App Integrations ](https://www.lojistic.com/api-app-integrations) Pricing- [Everything Included – Free Recommended ](https://www.lojistic.com/pricing) - [À La Carte Plan ](https://www.lojistic.com/pricing#a-la-carte) Resources- [White Paper ](https://www.lojistic.com/white-papers) - [FAQ ](https://www.lojistic.com/shipping-faqs) - [Security ](https://www.lojistic.com/security) [About](https://www.lojistic.com/about)- [Culture ](https://www.lojistic.com/culture) - [Careers ](https://www.lojistic.com/careers) - [Partner Programs ](https://www.lojistic.com/partner-programs) - [Ratings & Reviews ](https://www.lojistic.com/reviews) - [Videos ](https://www.lojistic.com/videos) - [Blog ](https://www.lojistic.com/blog) - [Contact Us ](https://www.lojistic.com/contact) [CHAT WITH US ](#) [Call Us (800) 783-5753 ](tel:8007835753) [Call Us (800) 783-5753 ](tel:8007835753) - [ ](https://www.facebook.com/LojisticUSA) - [ ](https://twitter.com/LojisticUSA) - [ ](https://www.youtube.com/lojistic) - [ ](https://www.linkedin.com/company/lojistic) [ ](https://www.lojistic.com) Send Costs Packing TM - [Privacy & Terms](https://www.lojistic.com/security) © 2026 Lojistic, LLC. All rights reserved. Various trademarks held by their respective owners. © 2026 Lojistic, LLC. All rights reserved. Various trademarks held by their respective owners. #### Lojistic and Cookies #### Manage Privacy Preferences *x* This site uses cookies to personalize your experience and analyze site traffic. By clicking ACCEPT or continuing to browse the site, you agree to our use of cookies. [See our Privacy Policy here](https://www.lojistic.com/data-privacy-and-security) [Customize my settings.](#) ACCEPT By checking the box, you agree to the storing of cookies on your device for the specified purposes. Strictly Necessary CookiesThese cookies are necessary for the website to function and cannot be switched off in our systems. Analytics Cookies [See our Privacy Policy](https://www.lojistic.com/data-privacy-and-security) CONFIRM Lojistic Lojistic Lojistic Facebook Icon Twitter Icon Youtube Icon Linkedin Icon Lock Icon Arrow Symbol Arrow Symbol