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Weekly Carrier Update: USPS First-Class Package Service & eCommerce trends

 

USPS First-Class Package Service

The USPS First-Class Package Service is back in the sights of cost savings. Last year, the USPS hinted at slowing down this service by removing it from the air network, but never really followed through. Once again, this is poised to roll out next month. The change could impact up to ~32% of shipments in this class, which will slide from 3-day transits to 4-5 day transits.

eCommerce and Retail

The latest research on the market indicates that consumers are trickling back to physical shopping for the first time since March of 2020. This doesn’t predict the collapse of eCommerce, by any stretch. It simply means that the on-going shift to eCommerce, which accelerated during the pandemic, is now returning to the migratory trend that was naturally occurring prior to the pandemic. Although it is too soon to tell, this shift, coupled with the many new carriers in the marketplace, could help to level set the playing field between carrier and shipper.