Transportation

The Postal Service owns and operates over 200,000 vehicles. These vehicles are primarily used for the transportation and delivery of mail. Postal vehicles are also used for law enforcement, maintenance support, mobile Post Offices and other activities.

During 2013, the active Postal fleet was reduced by 846 vehicles.

The Postal Service has a fleet of more than 200,000 vehicles of which over 40,000 are alternative fuel capable. In an effort to control costs and be environmentally responsible, the Postal Service is committed to using alternative fuel where feasible. The Postal Service operates Ethanol (E-85)/gasoline, Hybrid, Compressed Natural Gas (CNG), propane, and electric vehicles.

Postal vehicle inventory

In FY2013, we completed tests in New York and Virginia of a new fuel injected gas engine and a diesel engine to help extend the operating life of our aging fleet.

Overall, the Postal Service spent a total of $6,735 million in transportation expenses in FY2013. This represents an increase of $105 million or 1.6 percent compared to FY2012.

Highway transportation expenses in 2013 were $3,410 million, an increase of 0.9 percent. Even though fuel costs are only a portion of total highway transportation expense, they are the primary driver behind the increase of highway transportation expense in 2013. Partially offsetting the increases in fuel costs in 2013 was a 1.4 percent decrease in highway miles driven compared to 2012, as a result of national and local surface transportation utilization improvement initiatives.

The shift in our product mix, which has favored the shipping and package business, has resulted in an increase in domestic air transportation expenses of $119 million or 5.3 percent in 2013 compared to 2012, despite the decrease in jet fuel prices. Higher jet fuel cost resulted in an increase of 7.1 percent in 2012 over 2011. The cube space of mail delivered by air grew slightly as increases in Priority and package services were partially offset by decreases achieved by shifting other mail from air to ground transport.

There are also international transportation expenses to transport international mail, including both the physical transportation of mail to foreign destinations and fees payable to foreign postal administrations for the transportation and delivery of mail within their countries. International transportation expenses in 2013 totaled $906 million, a $44 million or 4.7 percent decrease over 2012. The primary driver of this decrease in 2013 is a decrease in fees paid to foreign postal administrations.