In an announcement scheduled for later Wednesday, the service is expected to say the Saturday mail cutback would begin in August. The agency in November reported an annual loss of a record $15.9 billion for the last budget year and forecast more red ink in 2013, capping a tumultuous year in which it was forced to default on billions in retiree health benefit prepayments to avert bankruptcy. Under the new plan, mail would be delivered to homes and businesses only from Monday through Friday but would still be delivered to post office boxes on Saturdays.
Over the past several years, the Postal Service has advocated shifting to a five-day delivery schedule for mail and packages — and it repeatedly but unsuccessfully appealed to Congress to approve the move. It was not immediately clear how the service could eliminate Saturday mail without congressional approval.
He said the change is expected to achieve cost savings of approximately $2 billion annually when fully implemented. The agency’s biggest problem was not due to reduced mail flow but rather to mounting mandatory costs for future retiree health benefits, which made up $11.1 billion of the losses.
The health payments are a requirement imposed by Congress in 2006 that the post office set aside $55 billion in an account to cover future medical costs for retirees. The United States Postal Service is revising its regulations on domestic mail insurance claims. The USPS rejected a suggestion that, rather than being required to retain the contents and all packaging materials until the claim was fully processed, the Postal Service instead accept digital photographs as proof of damage or proof of missing contents, and allow packaging to be discarded, with the contents retained, pending final disposition.


The Postal Service said it believed that the requirement to retain the contents and packaging was necessary and is consistent with standard industry practices.
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999.
Postal Service says it will stop delivering mail on Saturdays but continue to deliver packages six days a week under a plan aimed at saving about $2 billion a year. Package delivery has increased by 14 percent since 2010, officials say, while the delivery of letters and other mail has declined with the increasing use of email and other Internet services. Since 2006, it has cut annual costs by about $15 billion and reduced the size of its career workforce by 193,000 or by 28 percent, officials say. Though an independent agency, the service gets no tax dollars for its day-to-day operations but is subject to congressional control. Donahoe, postmaster general and CEO, says Postal Service market research and other research has indicated that nearly 7 in 10 Americans support the switch to five-day delivery as a way for the Postal Service to reduce costs. Without that and other related labor expenses, the mail agency sustained an operating loss of $2.4 billion, lower than the previous year. Postal authorities wanted Congress to address the issue last year, but lawmakers finished their session without getting it done. The damaged goods inspection policy is changing, and local Post Office personnel will no longer adjudicate claims - instead, all claims will be adjudicated by Accounting Services.


In addition, Express Mail customers may file online claims, even if no additional insurance was purchased. Customers must retain the damaged article and container, including packaging, wrapping, and any other contents received, until the claim is fully resolved. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Customers are no longer required to take these materials to the Post Office at the time a claim is filed. Louis, MO, or continue to file the claim form at a local Post Office and have it sent to St. Rather, upon receiving a request from the Postal Service, they are required to turn the materials over to their local Post Office for inspection, retention, and disposition in accordance with the claims decision.



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