Trump panel proposes postal reforms that could raise Amazon shipping costs

Proposed Postal Service reforms could hike package delivery costs

Proposed Postal Service reforms could hike package delivery costs

The Trump administration created a "task force" to investigate how to keep the Postal Service from continually losing billions of dollars annually over the past 12 years, Fox Business Network correspondent Kristina Partsinevelos reported.

That recommendation could raise costs for Amazon and other major businesses that are now using the Postal Service to supplement their delivery operations.

The president ordered creation of the task force, which was overseen by Mnuchin, last April after complaining that the Postal Service was not charging big users like Amazon enough to handle its shipments.

The report recommended that the Postal Service develop a new pricing model that would remove current price caps and charge market-based prices for mail and packages that were not deemed to be "essential postal services".

"This was not the reason that our founders put the United States Postal Service in the Constitution", he said of the relationship with Amazon - which is owned by routine Trump foil Jeffrey Bezos. President Trump has sharply criticized the Postal Service for undercharging companies for package delivery - specifically e-commerce giant Amazon.

Online retailers Amazon and eBay participated in the report, according to the task force.

The Amazon Washington Post has gone insane against me ever since they lost the Internet Tax Case in the U.S. Supreme Court two months ago.

Amazon, FedEx Corp and United Parcel Service Inc did not return requests for comment.

"The recommendations contained in the report should be evaluated together with legislative and regulatory reforms to address our urgent financial challenges", US Postmaster General Megan J. Brennan said in a statement.

Mark Dimondstein, president of the American Postal Workers Union, charged that numerous recommendations in the report were based on "myth and misinformation" and that instead of improving mail services "would deliver higher prices and less service to the public".

In regard to charging more for non-essential postal services, officials who briefed reporters said person-to-person mail and person-to-person packages would be considered essential postal services and would be exempt from the higher rates that would be levied on non-essential mail.

The Postal Service lost nearly $4 billion in fiscal 2018, which ended on September 30, even as package deliveries rose.

The report recommends handing the postal service the ability to redefine the meaning of the so-called "universal service obligation", which is a mission statement laying out the scope of the organization's services.