In surprising news, the print-mail service provider, OSG Group, filed for bankruptcy. The company cited debt, increased printing costs and declining mail volumes as reasons for its filing. OSG is one of the largest First-Class Mail providers in the United States, producing around 1 billion pieces of mail per year.
In similar news, The Target Report released their mergers and acquisitions report for July. This month’s report includes an in-depth look at the history of Cenveo, including the recent management buyout.
The US Postal Service (USPS) released the preliminary 3rd quarter financials. On controllable expenses, the USPS posted a profit for the quarter ($111 million), accumulating to $57.5 billion for the year to date. The USPS reported that this was due to a one-time benefit of $58 billion under the Postal Reform Act of 2022. Adjusting for that payment, the USPS would have had a $459 million loss for the quarter.
For the quarter, overall mail volumes were down 3.4% over the same period last year (SPLY) while revenue was up 5.0%. Shipping and package services lost both volume (-1.5%) and revenue (-1.1%) SPLY.
On Wednesday, the USPS announced the dates for the “Temporary Rate Adjustments” for the holiday peak season. This year, the higher prices will be in effect from October 2, 2022 through January 22, 2023.
Likewise, FedEx announced their peak surcharges for the 2022 holiday season. Some surcharges will begin as early as September 5, 2022, and then increase in October.
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