The U.S. Postal Service and Six-Day Delivery: Issues for Congress

Wendy R. Ginsberg
Analyst in Government Organization and Management

After running modest profits from FY2004 through FY2006, the U.S. Postal Service (USPS) lost $5.3 billion in FY2007, $2.8 billion in FY2008, and $3.8 billion in FY2009. For FY2010, USPS projects revenue to decrease between 4% and 6% and for sales volume to decrease by 6% to 9%. The bleak economic forecast for USPS prompted its leaders, Congress, and the public to suggest methods that may increase revenue or reduce expenses. Among these cost-saving suggestions is reducing the number of days per week that USPS delivers mail. 

At a 2009 congressional hearing Postmaster General John E. Potter stated that six-day delivery "may simply prove to be unaffordable." He then "reluctantly" requested that Congress eliminate the six-day delivery requirement that is placed annually in appropriations laws. Some lawmakers criticized Mr. Potter's request, stating that reducing service days could cause even greater reductions in mail volume and lead to a "death spiral" for USPS. Other lawmakers argued that USPS should have the flexibility to eliminate six-day delivery if they decide it is necessary. Still other legislators are uncertain about the future of six-day mail delivery. 

At a U.S. Postal Service symposium on March 2, 2010, USPS Postmaster General John Potter announced that USPS would seek to eliminate the statutory requirement that the Postal Service deliver mail six days per week. In addition, he said USPS would submit a formal request to the Postal Regulatory Commission (PRC), a USPS oversight body, seeking to move to five-day delivery. The Postal Service is required by statute to request an advisory opinion from the PRC at least 90 days prior to enacting this change. On March 24, 2010, USPS's Board of Governors approved the Postal Service management's request to seek a move to five-day delivery and to ask the PRC for its advisory opinion. On March 30, 2010, USPS asked the PRC to issue an advisory opinion on the move to five-day delivery. 

In 2008, two studies were conducted on the possible economic effects of reducing USPS delivery services. One study, conducted by USPS, estimated the financial savings of a five-day delivery week at $3.5 billion annually, with no anticipated reduction in sales volume. The other study, conducted by the Postal Regulatory Commission (PRC), estimated the savings at $1.94 billion annually, which includes a significant estimated loss of sales volume. USPS commissioned a third study, released in March 2010, that found USPS could save $3 billion per year if Saturday delivery were eliminated. The new study included an estimated loss in sales volume prompted by the eliminated day of delivery. 

Other countries' mail services vary in their delivery schedules. Australia, Sweden, and Canada offer five-day delivery services. France, Germany, the Netherlands, and the United Kingdom (UK) have six-day delivery. New Zealand offers some customers a six-day delivery option, but charges additional fees for weekend deliveries. Significant differences among the various global postal services may prevent USPS from borrowing operating techniques that have been successful in other countries. 

This report will examine the history of six-day mail delivery and analyze potential effects of reducing USPS delivery from six to five days. It will then examine legislative options, including bills that have been introduced in the 111th Congress.


Date of Report: August 5, 2010
Number of Pages: 38
Order Number: R40626
Price: $29.95

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