Current:Home > InvestPostal Service reduces air cargo by 90% over 2 years as part of cost-cutting effort-Angel Dreamer Wealth Society D1 Reviews & Insights
Postal Service reduces air cargo by 90% over 2 years as part of cost-cutting effort
View Date:2025-01-14 23:28:28
WASHINGTON (AP) — The U.S. Postal Service has reduced its volume of shipments by aircraft by 90% over two years, putting the service on course to save $1 billion in annual transportation costs, U.S. Postmaster General Louis DeJoy said Tuesday.
Shifting packages and envelopes from air cargo to ground transportation was part of DeJoy’s larger plan to improve the Postal Service’s financial health.
More than 95% of first-class mail and 95% of first-class packages are currently moving through the postal service’s ground transportation system, he said.
It is part of DeJoy’s broader effort to reduce operating costs, increase revenue from packages, and ensure timely deliveries, along with adjusting postage costs to mitigate inflation and expanding delivery points over the next 17 months.
Those efforts will have to continue after the Postal Service on Tuesday reported a projected $6 billion in unplanned costs this year because of inflation, unexpected retirement costs and other factors, he told the Board of Governors.
“We continue to manage the costs within our control, such as by reducing work hours by 6 million hours compared to the same quarter last year and by focusing on transportation and other operating costs,” Chief Financial Officer Joseph Corbett said.
DeJoy also reported that the Postal Service opened its first regional distribution center in Richmond, Virginia, and plans to open nine more regional centers, 27 local processing centers and 60 additional sorting and delivery centers.
That marks the start of eradicating over $20 billion of deferred maintenance and preparing the Postal Service for the next 30 years, he said.
veryGood! (863)
Related
- Michelle Obama Is Diving Back into the Dating World—But It’s Not What You Think
- Dyeing the Chicago River green 2024: Date, time, how to watch St. Patrick's Day tradition
- From 4-leaf clovers to some unexpected history, all you need to know about St. Patrick’s Day
- The 10 Best Backless Bras That Stay Hidden and *Actually* Give You Support
- Why Outer Banks Fans Think Costars Rudy Pankow and Madison Bailey Used Stunt Doubles Amid Rumored Rift
- 'Squid Game' actor O Yeong-Su, 79, convicted of sexual misconduct for 2017 incident: Reports
- Steelers trade QB Kenny Pickett to Eagles, clearing way for Russell Wilson to start, per reports
- First male top-tier professional soccer player to come out as gay proposes to partner on home pitch
- Sam LaPorta injury update: Lions TE injures shoulder, 'might miss' Week 11
- Bradley Cooper and Gigi Hadid Seal Their Romance With a Kiss in New PDA Photo
Ranking
- 'Underbanked' households more likely to own crypto, FDIC report says
- St. Patrick's Day 2024 parades livestream: Watch celebrations around the US
- Supreme Court lays out new test for determining when public officials can be sued for blocking users on social media
- Aaron Donald, Rams great and three-time NFL Defensive Player of Year, retires at 32
- The Daily Money: All about 'Doge.'
- Could Bitcoin climb to more than $1 million before 2030? Cathie Wood says yes.
- Is Jason Momoa Irish? 'Aquaman' actor stars in Guinness ad ahead of St. Patrick's Day
- Maryland House pushes higher taxes, online gambling in $1.3B plan for education and transportation
Recommendation
-
Karol G addresses backlash to '+57' lyric: 'I still have a lot to learn'
-
Texas teens need parental consent for birth control, court rules against fed regulations
-
Kristen Doute Reveals Her Honest Opinion on Jax Taylor and Brittany Cartwright's Breakup
-
Kaia Gerber Reveals Matching Tattoo With The Bear's Ayo Edebiri
-
4 charged in Detroit street shooting that left 2 dead, 5 wounded
-
When is the Boston St. Patrick's Day parade? 2024 route, time, how to watch and stream
-
Judge mulls third contempt case against Arizona for failing to improve prison health care
-
'Squid Game' actor O Yeong-Su, 79, convicted of sexual misconduct for 2017 incident: Reports