Postal Service reduces air cargo by 90% over 2 years as part of cost-cutting effort

Category: Business


Unlocking Word Meanings

Read the following words/expressions found in today’s article.

  1. shipment / ˈʃɪp mənt / (n.) – a large number of items, such as products or supplies, that are sent to a person or a place

    More shipments of ice cream arrive at the convenience store in summer.

  2. cargo / ˈkɑr goʊ / (n.) – something that is carried by a ship, plane, or large vehicle from one place to another

    The truck carries various cargo, including beauty products, household items, and school supplies.

  3. revenue / ˈrɛv ənˌyu / (n.) – money that a business or an organization receives, especially from selling goods or services

    There was a sudden increase in revenue when the company released its new products last month.

  4. mitigate / ˈmɪt ɪˌgeɪt / (v.) – to make something less severe or unpleasant

    The mayor instructed his team of experts to mitigate the damages caused by the storm.

  5. renovate / ˈrɛn əˌveɪt / (v.) – to repair and improve something old, especially a house or a building, to make it look new again

    I want to renovate my living room because the wallpapers and furniture are not stylish anymore.


Read the text below.

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.

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 prices to mitigate inflation and expanding delivery points over the next 17 months.

Those efforts will have to continue after the Postal Service 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 and renovate 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.

This article was provided by The Associated Press.

Viewpoint Discussion

Enjoy a discussion with your tutor.

Discussion A

  • In your opinion, how might the shift from air cargo to ground transportation impact the speed and reliability of deliveries for customers? How do you think customers would react to this? Discuss.
  • Why do you think the establishment of regional distribution centers, like the one in Richmond, Virginia, is important for the U.S. Postal Service (ex. to provide faster deliveries, to be easily accessible for customers)? Discuss.

Discussion B

  • Imagine a company you support undergoes adjustments to mitigate its financial struggles caused by inflation or a pandemic. Would you still support its product or service even if the cost or quality is not the same as before? Why or why not? Discuss.
  • How are businesses in your country addressing the financial challenges posed by inflation and the pandemic? In your experience, how have products and services that businesses offer changed recently (ex. they became more expensive, the quality is worse than before)? Discuss.