The USPS Office of Inspector General recently released a report called What's Driving Postal Transportation Costs? One of the report's authors, USPS OIG senior economist Jennifer Bradley, explains some of the report's findings:
- Background to the report, including the decline in letters and the growth in input costs
- The period covered by the report and the potential impact of events such as the GFC and elections
- The areas that warrant further study
- Separating transport costs from last mile delivery costs
- Fixed costs in transporting mail and parcels
- Air transport costs, service standards, and shifting volume from air to surface
- Growth in parcels and the impact on transportation costs
- Route optimisation and reducing transport costs
