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Postal Service Pricing Structure Puzzles UPS

by LJM Group

With recent comments from both politicians and parcel shippers, the postal service’s pricing structure has come under scrutiny, even after the Postal Accountability and Enhancement Act in 2006. However, this law only requires USPS’ competitive side to cover 5.5% of the fixed costs of their business––a number that many say is now outdated because the competitive side of the business has grown significantly since then, thanks to e-commerce. UPS calls the Amazon and USPS deal unfair and believes the Postal Regulatory Commission should get involved and review the minimum package shipping prices.

Read the full articleon CNBC.

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