1. GENERAL
The Postal Service spent $5.1 billion in 2002 for the contractual transportation of mail. This represents a 1.5 percent increase from 2001 transportation expenses compared to increases of 7.4 percent and 10.4 percent respectively for the previous two years. After the terrorist attacks on September 11, 2001, the Federal Aviation Authority placed restrictions on larger mail pieces which prohibited the Postal Service from using commercial air carriers. The Postal Service was forced to move virtually all Priority Mail to the FedEx and surface networks. Other major influences during the year were declining volumes and declining fuel prices.