WASHINGTON (Reuters) – President Donald Trump on Thursday bought the development of a job force to study the United States Postal Service and its monetary problems, after just recently declaring without proof that shipments for Amazon.com Inc were costing the service cash.
The job force will check out the post workplace’ s company design, just like a commission established by U.S. President George Bush in 2002.
“ The USPS is on an unsustainable monetary course and should be reorganized to avoid a taxpayer-funded bailout, ” stated the order, signed by Trump. It stated the Postal Service had actually lost $65 billion given that the 2007-2009 economic crisis.
The Postal Service, which is expected to be self-sufficient, need to ask Congress for approval to raise rates and should pre-fund years worth of retired person health advantages.
The order did not discuss Amazon, which Trump has actually routinely slammed in current weeks.
However, the order asked the job force to examine “ the growth and prices of the bundle shipment market and the USPS’ s function in competitive markets, ” to name a few problems.
Deliveries for Amazon and other online sellers have actually been the fastest-growing part of the United States Postal Service organisation, assisting balance out a sharp decrease in routine superior mail.
Details of Amazon’ s payments to USPS are not openly understood.
Wall Street experts have actually approximated it’ses a good idea USPS approximately half exactly what it would to United Parcel Service Inc or FedEx Corp to provide a bundle.
The order’ s language will likely motivate the job force to see if USPS can charge business like Amazon more for parcel shipment, an individual who formerly operated at the Postal Regulatory Commission stated on condition of privacy.
Amazon decreased to comment. The business is one of the Postal Service’ s most significant clients, it is progressively growing its own shipment capability, which might assist it stem any effect from modifications to USPS.
The job force will be chaired by Treasury Secretary Steven Mnuchin or his designee, and it will speak with the Postmaster General and the Chairman of the Postal Regulatory Commission, to name a few, the executive order stated.