newjerseynewsroom.com

BY BOB HOLT

NEWJERSEYNEWSROOM.COM

The United States Postal Service lost $5.1 billion last year, but their priority and express mail revenue increased by 6.3 percent. In an effort to avoid bankruptcy, the post office plans to raise their rates.

The post office, which has been hemorrhaging money for years, have basically increased their shipping charges by five percent.

The Associated Press reports that their new rates will go into effect on January 22, 2012. The Post Office will be using a new flat rate of $39.95 for overnight express mail boxes of up to 70 pounds being sent domestically; express letter rates are going up to $18.95. Priority mail prices, using two-to-three-day delivery, will rise by about 3.1 percent.

Other priority mail rates that are changing will include $5.35 for a small box, $11.35 for a medium sized box, $15.45 for a large box, $5.15 for a regular envelope, and $5.30 for a legal-size and padded envelope.

U.S. Postmaster General Patrick Donohue has taken his case to Congress. According to NPR, one bipartisan Senate bill would help the Postal Service cut its workforce. A Senate bill supports giving the Postal Service $7 billion to cover buyouts. There are currently 557,000 workers employed by the Postal Service, with only Wal-Mart having more workers in the private sector.

The Postal Service has also hired an advisory firm that helped General Motors to restructure during the government bailouts. Reuters reports that investment banking advising firm Evercore Partners will look into operational changes for the post office.

The Los Angeles Times’ David Lazarus suggests that the post office can save money by eliminating rural delivery. Boundaries for home delivery would be set in every urban area, and mail would be sent to the nearest post office, to be picked up at a person’s convenience.