The Washington Post

Postal Service changes Priority Mail lineup to enhance shipping business

The U.S. Postal Service on Wednesday made changes to its Priority Mail lineup, offering free insurance and tracking along with day-specific delivery in an effort to boost shipping revenue for the financially ailing agency.

“Our revamped Priority Mail product line should be a game-changer in the shipping marketplace,” said USPS Chief Marketing and Sales Officer Nagisa Manabe. “We’re meeting the rising expectations of customers.”

(David Goldman/AP) (David Goldman/AP)

Under the plan, Priority Mail will include up to $100 of insurance coverage free of charge. It also provides scheduled delivery — one-day, two-day or three-day — based on the origin and destination of the package.

The Postal Service’s package business had grown in recent years, increasing by more than 14 percent since 2011, the agency said. Meanwhile, first-class mail volume has declined, dropping by more than 6 percent over the same period, according to USPS figures.

The agency lost nearly $16 billion last year, followed by losses totaling about $4 billion for the first three quarters of 2013. USPS officials said during a conference call with reporters on Wednesday that the Priority Mail plan would bring in an estimated $500 million per year in additional revenue.

To connect with Josh Hicks, follow his Twitter feed, friend his Facebook page or e-mail josh.hicks@washpost.comFor more federal news, visit The Federal Eye, The Fed Page and Post Politics. E-mail with news tips and other suggestions.

Josh Hicks covers Maryland politics and government. He previously anchored the Post’s Federal Eye blog, focusing on federal accountability and workforce issues.



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Josh Hicks · August 14, 2013

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