Transportation
Postal-Owned Transportation
The Postal Service manages one of the nation's largest vehicle and alternative fuel capable fleets. We are testing a new fuel-injection gas engine, and a diesel engine to help extend the operating life of our aging fleet. We also are testing additional electric vehicles in New York and Virginia. These tests will continue into FY 2013.
Postal Vehicle Inventory
Vehicle Type |
FY 2011 |
FY 2012 |
Difference (+/-) |
|---|---|---|---|
Delivery and collection (1/2 - 2 1/2 ton) |
192,088 |
190,897 |
-1,191 |
Mail transport (tractors and trailers) |
6,083 |
5,985 |
-98 |
Mail transport (3-9 tons) |
2,154 |
2,145 |
-9 |
Administrative and other |
6,478 |
6,451 |
-27 |
Service (maintenance) |
4,625 |
4,604 |
-21 |
Inspection Service and law enforcement |
2,453 |
2,448 |
-5 |
Total |
213,881 |
212,530 |
-1,351 |
Innovative Drop-Ship Discounts, Partnerships and Contracts with the Private Sector
The Postal Service has been innovative in developing discount programs to lower our customers' cost of mailing and shipping. Mailers have the option of bypassing Postal operations, including transportation, if they can perform these functions at a lower cost themselves.
Mailers and shippers, including package service competitors, then take advantage of the Postal Service's "last mile" delivery.
The Postal Service also has become one of the biggest customers of our competitors, contracting with them for long-haul transportation services, particularly for expedited services.
By bypassing commercial airline service, the Postal Service has improved service performance and consistency. To reduce the costs of air transportation, we have been converting to ground transportation whenever possible.
The Postal Service spent a total of $6.6 billion in fiscal year 2012 in transportation expenses. That's about $241 million or 3.8 percent higher than the previous year. The increase was driven largely by higher fuel prices. A one percent increase in fuel costs (diesel fuel, unleaded gas, and aircraft fuel) would result in a $28 million increase in our fuel expense.
Achievements
Total Surface Transportation mileage in September 2012 was about 2.6 percent lower than the mileage achieved in October 2011. This decrease in mileage is largely due to a reduction in the number of our contracts and efficiency gains through consolidations.