RM2003-5, in which it proposed specialized
procedures to consider Postal Service
requests for rate and classification changes
based on NSAs. Many of the PRC's proposals
arose out of procedural and other issues
encountered in Docket No. MC2002-2 (see
item D.2). Participants in this rulemaking
have filed comments on the proposed rules.
11. Update on Other
Initiatives
As part of an ongoing review of ecommerce
and other new services, the Postal
Service has made several changes to the
nonpostal initiatives identified in the report on
Nonpostal Initiatives filed with the Postal Rate
Commission on March 10, 2003. The initiatives
in which there have been major
changes are listed below:
a. Mail Package Shipment
Program
This program, known as the "All Malls
Valet Shipping Program," was a limited pilot
test of a variation of free centralized collection
service in shopping malls. This program
had been discontinued due to limited use
during the experiment. It has now been
terminated.
b. LibertyCash
This initiative involved consideration of a
stored value card for use in purchasing
postage and related products. The Postal
Service has terminated this initiative.
c. USPS eBillPay
USPS eBillPay enables customers to
receive, view and pay their bills electronically
via the Postal Service Web site. From inception,
this service was largely operated by
CheckFree Corporation, with the Postal
Service retaining a role relating to marketing,
promotion and customer service activities.
The Postal Service has decided that it will not
renew the contract with CheckFree upon its
expiration in April 2004, and has so informed
CheckFree.
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d. USPS Send Money
USPS Send Money is a service feature
available to customers wanting to send
money to anyone with a transfer between
bank accounts. Since this is provided as a
feature under the agreement with
CheckFree, it will also no longer be offered by
the Postal Service after April 2004.
e. USPS Pay@Delivery™
This feature allows customers to combine
USPS Send Money with the Postal Service's
Delivery Confirmation service offering. Since
this is provided as a feature under the agreement
with CheckFree, it will also no longer be
offered by the Postal Service after April 2004.
E. Transportation Policies
1. General
The Postal Service spent $4.6 billion in
2003 for the contractual transportation of
mail. This represents a $42 million decrease
from 2002 transportation expenses
compared to increases of 1.3 percent and
7.4 percent respectively for the previous two
years. After the terrorist attacks on
September 11, 2001, the Federal Aviation
Authority (FAA) placed restrictions on larger
mailpieces which prohibited the Postal
Service from using commercial air carriers.
The Postal Service was forced to move virtually
all Priority Mail items to the FedEx and
surface networks. During 2003 the consolidation
of routes and improved efficiencies in
air transportation resulted in an overall
decrease in total transportation costs.
2. Domestic Transportation
a. Air Transportation
Air transportation costs in 2003 totaled
$1.8 billion, a decrease of 3.4 percent over
the prior year. These costs include the use of
commercial airlines (passenger and freight)
and dedicated networks. The Postal Service
contracted to move more than 2.4 billion
pounds of domestic mail last year. As a result
of the September 11, 2001, attacks, the |
Chapter 1
Compliance with Statutory Policies Introduction
- Fundamental Service to the People
- The Workforce
- Service to Small or Rural Communities
- Postal Cost Apportionment and Postal Ratemaking Developments
- Transportation Policies
- Postal Service Facilities, Equipment, and Supplies
Chapter 2 Postal Operations
Chapter 3 Financial Highlights
Chapter 4 2003 Performance Report and Preliminary 2005 Annual Performance Plan |