USPS

UPS Urges PRC to Reject Postal Service’s Money-Losing China NSA

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The United Parcel Service (UPS) is urging the Postal Regulatory Commission (PRC) to reject a new U.S. Postal Service / China Post Group Negotiated Service Agreement (NSA). UPS contends the Postal Service’s NSA is virtually guaranteed to lose even more money than it currently does with China and the ePacket service, and will unreasonably harm the competitive e-commerce marketplace. UPS notes in a recent audit the Office of Inspector General found that the Postal Service received 27 million ePackets from China Post in FY 2012 under the China Post 2010 Agreement… and each ePacket lost $1.10 on average! The UPS adds that the Postal Service’s recent agreement with China’s Alibaba will only increase ePacket mailings and losses for the Postal Service.

Feedback received at PostalMag.com indicates it is cheaper in many cases to mail a package from China to the United States than from two points within the United States, putting many American retailers out of business because they can’t compete with China’s rock-bottom prices. Of note, eBay generally supports the ePacket service (and the NSA) since the ePacket products are listed on eBay, while Amazon.com and the UPS are against the ePacket service because it takes away business and shipping from American companies.

Click here to read the United Parcel Service’s entire comments (PDF).

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