USPS Begins Search for New Postmaster General

The United States Postal Service (USPS) has announced that Postmaster General Louis DeJoy is initiating the process to identify his successor. After leading the agency through a major transformation since 2020, DeJoy emphasized securing long-term leadership to continue USPS’s modernization efforts.

Under his tenure, USPS launched the Delivering for America plan, reducing costs, increasing revenue, and investing billions in infrastructure upgrades. Board of Governors Chairwoman Amber McReynolds praised his leadership, noting his dedication to stabilizing the agency.

As the search begins, DeJoy remains committed to a smooth transition, ensuring USPS is positioned for long-term success.

Source: USPS News National

The bigger news is not on who will be the successor but if Trump pushes forward with privatizing the USPS.

Paul Waldman wrote in an MSNBC piece published in December, that Trump is doesn’t like the USPS and had talks with advisers at Mar-a-Lago to discuss postal privatization late last year.

If the USPS were privatized, how could it impact the parcel industry?

1. Increased Competition & Higher Prices

– USPS currently offers affordable rates, especially for rural and low-volume shippers, due to its government-backed structure.

– If privatized, it may operate like FedEx and UPS, leading to higher shipping costs and fewer price-controlled services for consumers and businesses.

2. Service Reductions & Accessibility Issues

– Rural areas may see reduced service or higher delivery fees since they are less profitable.

– Private ownership might eliminate six-day delivery and First-Class Mail discounts, impacting businesses reliant on USPS for affordable logistics.

3. Competitive Shifts for FedEx, UPS & Amazon

– USPS plays a key role in last-mile delivery for FedEx, UPS, and Amazon through Parcel Select services.

– Without USPS, FedEx and UPS might increase last-mile delivery fees, and Amazon could expand its own logistics network to fill the gap.

4. Labor & Workforce Changes

– USPS workers are federally protected, with benefits and collective bargaining rights.

– Privatization may lead to job cuts, wage reductions, or fewer benefits, similar to private logistics companies.

5. Impact on E-commerce & Small Businesses

– Many small businesses rely on USPS for cost-effective shipping, especially with Priority Mail and Media Mail services.

– Privatization may lead to fewer affordable options, increasing costs for e-commerce sellers and reducing competitive advantages.

6. Potential for Innovation & Efficiency Gains

– A private USPS could invest more in technology and modern logistics systems, improving efficiency.

– However, cost-cutting measures could mean less emphasis on universal service in favor of profitability.

In Summary

Privatizing USPS could result in higher shipping costs, service reductions in rural areas, and industry shifts benefiting private carriers. However, it may also encourage efficiency improvements and new logistics innovations. The biggest challenge would be maintaining affordable, reliable mail services for all Americans while balancing corporate profitability.

Is there anything I can do today?

Partner with ebb Logistics!

Many shippers hesitate to engage with us, believing they already have competitive rates. This is precisely why you should consult with us. We will either confirm your belief through a professional evaluation or reveal exciting opportunities for securing even better rates. Don’t be fooled—these negotiations are complex, and to obtain competitive rates, you must be well-versed in YOUR profile and industry trends for pricing. We are experts and can help.

The initial engagement is a FREE evaluation of your contracts. Your only obligation is to allow us to present you with the results.

Contact Us.