HOW COVID-19 AFFECTED DELIVERY

The COVID-19 pandemic exacerbated the financial, operational, and service performances of the USPS. Here’s how:

Employee Availability
The cumulative number of employees quarantined reached 19.1%, while  non-career employee turnover rate hit 40%.

Transportation
Lack of airplane and truck capacity, and industry competition for both, disrupted the supply chain and transportation resources particularly during the holiday season

Shift in Mail/Package Composition
A dramatic decline in First Class Mail combined with an unprecedented package volume increase of 40%

The postal service continued to deliver to its 160 million address client base throughout 2020. However, constraints in processing and transportation networks prevented timely and consistent arrival of product.

Package delivery is expected to continue to rise in the coming decade.  While this dynamic will create strong opportunities for the Postal Service and may leverage it to be even
more relevant, it also requires significant changes to its operating model. In the coming months we are anxious to learn what USPMG Louis DeJoy’s 10-year vision for the postal will be.

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