Amazon, other shippers ask Trump administration not to raise postal rates

A newly-formed coalition of major U.S. shippers is asking the Trump administration not to raise rates for shipping packages, according to the Politico Influence newsletter.

Major shippers including Amazon, the National Retail Federation and Publishers Clearing House formed the Package Coalition in early August in reaction to the Trump administration's move to consider U.S. Postal Service reforms. Former Rep. John McHugh, R.-N.Y., helms the coalition.

The White House set an Aug. 10 deadline for its postal service task force to recommend potential reforms to improve the financial performance of the U.S. Postal Service, some of which may include raising shipping rates.

President Donald Trump requested the review amid criticisms that Amazon cost taxpayers money by underpaying to ship packages. While shippers, including Amazon, tend to negotiate discounted rates, payments must cover the costs to ship packages, Politico notes in its Morning eHealth newsletter.

In a letter to Treasury Secretary Steve Mnuchin obtained by Politico, the coalition wrote it is "concerned that this review may become an effort to justify measures that would force the U.S. Postal Service to raise its prices" above cost-covering market rates.

More articles on supply chain:
Penn Medicine says goodbye to sugary drinks in its facilities
Medical device sector sees most quarterly recalls in over a decade
FDA approves 1st generic under new pathway & 2 other drugs this week

© Copyright ASC COMMUNICATIONS 2021. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.