Agency struggles to speed up delivery

William Pietri, a software engineer in San Francisco, put careful thought into his Christmas box for his family in Michigan, jamming it with tastes from around the world and other gifts: Indonesian ginger candy, Mexican saladitos con chile, Korean honey butter almonds, a puzzle that was almost impossible to find.

But about three months later, the package has never arrived. According to the U.S. Postal Service, it is still “in transit, arriving late.”

Pietri, 51, is left to guess at the cause. The coronavirus pandemic? The politicization of the Postal Service under former President Donald Trump? “Well-informed delays, I would be happy with, but this great mystery is deeply frustrating,” he said.

Months after an election that thrust problems at the Postal Service into the national glare, the beleaguered agency has failed to restore its target delivery times. In mid-December — awash in Christmas and New Year’s greetings — the agency delivered as little as 62% of first-class mail on time, the lowest level in years, according to Postal Service data. The rate had rebounded to 84% by the week of March 6, but remained far below the agency’s target of about 96%.

“It hasn’t really gotten better as much as we would have hoped at this point,” said Dave Lewis, the president of SnailWorks, a company that tracks commercial mail and has found that delivery now takes four to five days, after years of averaging 3.5. “It just seems that the Postal Service just hasn’t come to grips with this and hasn’t been able to dig themselves out of it yet from the problems they had in December.”

The delays are compounding problems at a venerable American institution already teetering under widening financial losses, polarizing leadership and questions about what the Biden administration will — or even can — do to right the ship. And they may be a precursor of even worse delays to come as the Postal Service reaches a potential inflection point: The agency cannot fix its finances without addressing its service problems, and it cannot address its service problems without fixing its finances.

Already the postmaster general, Louis DeJoy, is completing a soon-to-bereleased plan to stabilize the agency’s finances over 10 years that is expected to prioritize reliability and cost effectiveness over speed. In part, that could mean people such as Pietri no longer find their Christmas gifts lost in transit, but it almost certainly would slow the delivery of some mail even further.

DeJoy’s report is expected to propose eliminating the use of planes for the first-class mail service to transport letters and other flat mail in the contiguous United States, according to someone familiar with the planning. It is also expected to propose lengthening the agency’s standard delivery time for first-class mail, which includes many envelopes and lightweight packages, from within three days to within five days.

Among other ideas under consideration: shuttering processing facilities and reducing some post office hours. DeJoy told lawmakers last month that price increases would also be part of the strategy. The plan is part of a concerted effort by the agency to shift its resources to shipping packages, which have become a growing share of its business as traditional mail volumes have declined.

DeJoy, a former logistics executive and Trump megadonor, had already drawn Democrats’ wrath when slowdowns began last year as he instituted operational changes during an election year with a historic influx of mail-in ballots. But President Joe Biden cannot directly fire him. Instead, his fate rests with the Postal Service Board of Governors, minus DeJoy himself, composed entirely of Trump appointees.

In the past 14 fiscal years, the Postal Service has lost $87 billion, including $9.2 billion in the 2020 fiscal year alone, and expects to lose $9.7 billion in 2021. The agency, which is expected to be self-sustaining, “cannot fund its current level of services and financial obligations from its revenues,” the Government Accountability Office said in a report naming the Postal Service to its “high risk” financial list. In July, the service reached an agreement with the Treasury Department on a $10 billion loan as part of a coronavirus relief bill.