The cost of first-class postage is up, delivery times are down… and this is just the beginning. Effective October 1, USPS instituted new service standards for first-class mail and packages. Called "Delivering For America" — a 10-year program aimed at reducing the Postal Service's 160 billion debt — lengthening delivery time for 30% of its volume. That means the price of a first-class stamp will go up but the letter (or check) could take up to a week to be delivered. The plan also calls for a reduction in post office hours and more postage hikes during the peak holiday season.
Not that Q1 2021 performance was anything to write home about in the first place: 1 in 5 pieces of mail across the U.S. was delivered late to households and businesses in the first three months of 2021, according to USPS chief technology officer Scott Bombaugh. At the same time, mail volume was down sharply in the first quarter because the holiday rush was over. So, performance declined even though the USPS was handling less mail.
"It's disappointing, and it's quite low by historic standards," says Paul Steidler, a senior fellow with the Lexington Institute and expert on the USPS. "It means a lot of stuff isn't getting delivered on time. I would pay your credit card at least a week before it's due. It means if you are expecting rent checks or have to pay a rent check, you better give yourself some extra time."
The old "the check is in the mail" excuse may be more plausible now, but no less palatable. "In fairness to the postmaster general, yes, the pandemic imposes challenges on mail delivery, but if you go back to the quarter ended June 30 — when things were really, really bad — you had performance levels that were a lot better than now," Steidler adds. "The service numbers are disappointing, and that is the mission of the postal service — to deliver mail."
Bottom line: snail mail is about to get slower for some of the 160 million residences and businesses that rely on the Postal Service. Letters and parcels traveling longer distances could take up to five days to arrive, instead of two or three days… and that is the first-class mail. Catalogs, magazines and other bulk mail could be delayed longer, much longer!
