The USPS continues its downward spiral of financial turmoil while simultaneously taking on more debt. Doesn’t make sense does it? Let’s say you continued spending more money than you were earning each month. You would see your monthly expenses increase while nothing in your income changes. What would you do? We hope that you would pause to take inventory of your expenses and eliminate the things that are not necessary. That may mean no more splurges at Target, no beach vacation, driving a modest car; the list goes on.
Unfortunately, this has not happened for the USPS. In 2013 the Postal Service lost $79 million delivering inbound international mail. Yes, inbound. Ever wonder why shipping is so cheap when you order things on Amazon from places like China and Thailand? Someone somewhere has to pay for the difference. Business owners and other postal customers, brace yourselves, that subsidy comes out of your pocket. And as taxpayers, we should all be worried too. If USPS fails financially, a Fannie Mae/Freddie Mac-style bailout, courtesy of the U.S. Treasury, is almost certain to follow.
Transparency is lacking in how delivery rates are determined both outbound internationally as well as inbound international rates by the USPS. The same package arriving in the U.S. can cost as little as $.94 while sending it internationally can cost over $11. These prices are set by an international agency under the leadership of the United Nations and mandated by a treaty over 20 years old.