| ebb Logistics |
Parcel Shipping Consultants |
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Carrier Strategy Brief
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| USPS reform is no longer a policy story. Instead, it has become a parcel strategy issue. Consequently, every shipper that leans on the postal network should treat the latest Senate testimony as a signal to review contracts, lanes, and carrier mix now rather than after rates move. |
| Postmaster General David Steiner told the Senate that USPS has a broken business model. Furthermore, he pointed to nearly $31 billion in cumulative defaults against only $8.9 billion in unrestricted cash. As a result, that pressure could reshape prices, service standards, and carrier leverage across the market. |
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| Therefore, shippers should treat this testimony as a trigger for network and contract review. |
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01 / Summary
A System Under Structural Strain |
| Steiner’s testimony describes a USPS system under real structural pressure. First, mail volume has collapsed. Meanwhile, delivery points keep climbing, which stretches a shrinking revenue base across a growing footprint. |
Mail Volume, Pieces Per Year
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| At the same time, USPS serves more than 170 million addresses six days weekly, and many routes and Post Offices lose money. In addition, USPS argues that statutory limits restrict its key levers, including pricing flexibility, borrowing authority, retirement investment, service design, and retail consolidation. |
| However, USPS also says it has cut costs through transportation reform, labor alignment, and network modernization. Ultimately, the testimony frames the choice for Congress plainly. Lawmakers can fund universal service, permit operating flexibility, or accept sharper cuts. |
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02 / Analysis
Three Strategic Signals |
| Above all, the testimony sends three signals that parcel shippers should read carefully. |
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USPS wants more pricing flexibility. Notably, it filed a petition seeking to replace price caps or gain broader pricing authority. |
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USPS is redesigning its network. Specifically, the plan includes roughly 60 Regional Processing and Distribution Centers, of which USPS has activated 14 so far. Moreover, it has launched more than 158 Sorting and Delivery Centers. |
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USPS wants to grow parcel revenue. For example, its DHL agreement carries an expected value above $10 billion. |
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| Taken together, these moves suggest USPS will keep pursuing package volume. However, it will likely become more disciplined on margin. Consequently, lower margin volume may face more scrutiny, so induction rules, accessorial design, and zone economics may matter more than before. |
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03 / Impact
What This Means for Parcel Shippers |
| First, cost risk is increasing. Because USPS price stability is now less certain, higher rates could reach both package and mail products. Second, service risk needs attention. USPS says its Regional Transportation Optimization keeps or improves standards for most volume, yet some lanes may still see one day adjustments. |
| Third, carrier strategy matters more now. USPS still plays a key role in lightweight, residential, rural, and final mile shipping. Even so, shippers should not treat USPS as the only answer. Instead, they should test it against UPS, FedEx, DHL, regional carriers, and consolidators. |
| Finally, leverage depends on data. Therefore, shippers need modeled scenarios before peak, and they need clean benchmarks before carrier negotiations. |
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04 / Key Takeaways
The Seven Points to Remember |
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USPS cash pressure creates pricing risk. |
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Universal service costs remain unresolved. |
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Network redesign changes transportation logic. |
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Some lanes may see timing changes. |
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Parcel growth remains a USPS priority. |
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Shippers need benchmarked alternatives. |
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Contract leverage depends on clean data. |
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05 / Next Step
How ebb Logistics Can Help |
| At ebb Logistics, we help shippers convert postal uncertainty into practical carrier decisions. First, we analyze your parcel data, contracts, invoices, accessorials, service performance, and carrier fit. Next, we benchmark UPS, FedEx, USPS, DHL, regional carriers, and consolidators side by side. |
| As a result, we identify where USPS still adds value, and we show where alternatives improve reliability or leverage. In addition, our team supports negotiations, savings validation, invoice auditing, and peak surcharge planning. Ultimately, that gives you a clear plan before rates, rules, or service standards change. |
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Prefer to reach us directly? Visit
ebblogistics.com/site/contact. |
Source: Testimony of Postmaster General David Steiner before the U.S. Senate Committee on Homeland Security and Governmental Affairs, June 24, 2026.
Read the full testimony (PDF) | |
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