USPS Package Revenue Surges In Second Quarter

The Postal Service reported total revenue of approximately $18.9 billion for the second quarter of fiscal 2021, an increase of approximately $1.1 billion, or 6.0 percent, compared to the same quarter last year.

As a result of the pandemic, and to a lesser extent, secular mail declines, the Postal Service’s sales from mail services, its largest sales category, continued to decline during the second quarter. Compared to the same quarter last year, Marketing Mail revenue declined by $511 million, or 13.7 percent, on a volume decline of approximately 2.3 billion pieces, or 13.5 percent. First-Class Mail revenue decreased by $390 million, or 6.1 percent, on a volume decline of approximately 1.1 billion pieces, or 7.9 percent, compared to the same quarter last year.

Meanwhile, the Postal Service’s sales from Shipping and Packages increased by approximately $2.0 billion, or 33.6 percent, on a volume increase of 376 million pieces, or 25.3 percent, compared to the same quarter last year, as a result of the surge in e-commerce associated with the COVID-19 pandemic.

Also service performance improved in the quarter, with improvements continuing. USPS also anticipates ongoing network infrastructure investments, such as the installation of new package processing equipment, will meet customer’s evolving needs ahead of the 2021 holiday season.

“The financial results for the quarter and the ongoing trend of declining mail volume and increasing package volume highlights why our Delivering for America 10-year plan needs to be fully implemented,” said Chief Financial Officer Joseph Corbett. “The plan delivers the framework for us to better innovate to grow revenue, work more efficiently and achieve financial sustainability to fulfill our universal service mission. If the plan is implemented in its totality, we expect to achieve break-even operating performance over the ten-year period and positive net income by FY2023 or FY2024, reversing $160 billion in projected losses over the next decade.”

Excluding non-cash workers’ compensation adjustments, total operating expenses were approximately $20.6 billion for the quarter, an increase of $872 million, or 4.4 percent, compared to approximately $19.7 billion for the same quarter last year. Actual total operating expenses, including the non-cash workers’ compensation adjustments, were approximately $19.0 billion for the quarter, a decrease of approximately $3.4 billion, or 15.1 percent, compared to the same quarter last year.

Compensation and benefits expense increased by $517 million, or 4.4 percent, compared to the same quarter last year, primarily resulting from higher work hours associated with the package volume growth, contractual wage increases and an increase in paid leave associated with the COVID-19 pandemic.

In addition to increased labor costs to support the volume increase, transportation expenses increased by $336 million, or 16.7 percent, compared to the same quarter last year, primarily due to the impact of higher package volumes on air and highway transportation and shifts in average package dimensions as consumer behavior continues to evolve during the COVID-19 pandemic.


  • This holiday season, we know that identity thieves will be targeting not just our inboxes, but our mailboxes,” said District Attorney Vance. “So, we’re putting scammers on notice: the Manhattan D.A.’s Office has the expertise, resources, and partnerships in cybercrime and identity theft to find you and hold you accountable. We will continue to work hand-in-hand with the U.S. Postal Inspection Service and the NYPD to stamp out fraud and protect the integrity of a service relied upon by millions of New Yorkers." [...]
  • The U.S. Postal Service pursued a project to build and secretly test a blockchain-based mobile phone voting system before the 2020 election, experimenting with a technology that the government’s own cybersecurity agency says can’t be trusted to securely handle ballots. [...]
  • The United States Postal Service reported new service delivery performance metrics showing stable service performance for First-Class Mail, Marketing Mail and Periodicals through the first nine weeks of the fiscal first quarter. [...]
  • The United States Postal Service hereby gives notice of delayed implementation of the classification changes for the new Nonstandard Fees and Dimension Noncompliance Fee. Specifically, the Postal Service will delay implementation of those fees until April 3, 2022. [...]
  • Take advantage of USPS's Electronic Verification System (eVS) with Eii's Postal Steward eVS Solution. This is a fully integrated system for creating and submitting eVS mailings to the USPS's PostalOne! for greater ease of control over paying for and documenting your high-volume mailings. [...]
  • Imagine the customer’s plight at having to type it on your order form! Thankfully most city and street names have fewer characters but the spellings can still be quite confusing. Making a spelling mistake when entering addresses is not just frustrating for customers who may get their orders late but also bad for your database. [...]
  • Alliance Rubber offers more than just rubber bands. Its Mailing/Storage Tubes are designed for anything that can be rolled in a commercial grade .050" wall thickness [...]
  • The USPS released Important information about upcoming January 2022 Release changes … (click to [...]
  • The Postal Regulatory Commission announced today that Michael M. Kubayanda has returned to the agency as chairman. After being re-nominated by President Joseph R. Biden and unanimously confirmed by the U.S. Senate, Chairman Kubayanda was sworn back into office today, December 9, 2021, to serve a term through November 22, 2026. [...]
  • Supply chain disruptions, transportation network challenges and various reasons for downtime at mills added stress to the already limited paper market. Coated freesheet inventories were low to begin with and haven’t been able to keep up with further shortages caused by plants going offline. [...]
  • From CNBC: Dave Clark, Amazon’s CEO of worldwide consumer, told CNBC on Monday that the company is on track to become the nation’s largest delivery service by the end of [...]
  • From Detroit News: An Amazon Web Services outage is wreaking havoc on the e-commerce giant’s delivery operation, preventing drivers from getting routes or packages and [...]
  • MAILCOM returns from its COVID hiatus with the MAILCOM 2022 Annual Spring Convention, March 28-30 at the Tropicana in Atlantic City. Updates and registration information can [...]
  • Polaris Direct has installed a second Truepress Jet520ZZ and two Bowe Systec Fusion Cross inserters to handle the growing demand for Roll-Fed Digital Inkjet technology. Pictured is the Polaris Direct team with the new Truepress. [...]
  • BlueCrest, the former Pitney Bowes DMT, has acquired Fluence Automation, formerly the sortation business of Bell and Howell. Fluence will become part of BlueCrest, and in the short-term will be referred to as Fluence Automation, A BlueCrest Company. [...]