Business, Freight News, Logistics

US Post back from the brink?

[ September 7, 2011   //   Chris ]

The US Postmaster General warned on 5 September that the US Postal Service would have to shut down this winter – possibly for good – if Congress did not take urgent action to stabilise its finances. Its deficit is set to balloon to $9.2 billion despite a range of cost-measures including ending Saturday deliveries, closing nearly 3,700 post offices and laying off around 20% of its workforce – 120,000 workers.

The USPS has been hit by a rapid loss in business, due to the growth of the internet and the recession and now risks defaulting on its massive debts.

The Senate Homeland Security and Governmental Affairs Committee is due to discuss the future of the USPS on Tuesday 6 September.

However, on 7 September it was reported that the White House was considering delaying the payment for 90 days.