Postal Affairs Update, December 18, 2020

The Postal Service’s busy holiday season has been compounded by the pandemic, with more consumers buying online instead of in-store. At the same time, USPS staffing shortages have negatively affected processing and delivery performance. The situation is unprecedented, with worse performance than most of us have seen over the past 30 years. We’re receiving updates daily, tracking Quad customer mail and working to find solutions to best navigate through these challenging times. And we’re watching movement in Washington D.C. on a stimulus package, which could potentially bolster the USPS.

Quad’s Postal Affairs team remains committed to keeping you up to date and informed. As a significant mailing industry partner, we are in a unique position to provide clear and accurate information regarding the state of the USPS and suggest best practices during this time. Please notify the Quad Postal Affairs team if you become aware of any changes, questions or something new related to how the USPS is reacting to the pandemic. We will investigate and update all. Please send inquiries to the Quad Postal Affairs Distribution list (Postal Affairs – Team) or ask your Quad representative.

Here are key developments since our last update:

Performance delays

As Quad and the media have reported over the last two weeks, the USPS is experiencing severe delays from dock to doorstep. These are related to historically high package volume, made even higher as FedEx and UPS divert packages to the USPS while they focus on the delivery of the vaccine. Delays are compounded by a high number of employees out on sick leave. And winter storm Gail added challenges in recent days.

This week, 25 USPS locations have asked drivers to wait as long as 48 hours to unload trucks. See the list below for those critical facilities. It should be noted that Quad and other logistics providers are seeing delays at many more facilities than the USPS lists here.

Several facilities are reporting delays in processing First Class mail. Informed Visibility tracking data shows us that in reality many more are delayed. The tracking data for Standard and Periodical mail also tells us that there are severe processing delays in many facilities.

Finally, we are hearing of issues on the final delivery level. News reports indicate that some areas are not delivering daily, but every other day or every few days. The USPS has acknowledged that there could be a one-day delay in delivery throughout the pandemic when a delivery unit has several employees quarantining.

Facilities with the lowest percentage of mail processed by Service Standard:

Entry Type	City	State
FSS	AKRON	OH
FSS	DALLAS	TX
FSS	DENVER	CO
SCF	GREENSBORO	NC
FSS	INDIANAPOLIS	IN
FSS	MICHIGAN METROPLEX	MI
FSS	NORTH HOUSTON	TX
FSS	ORLANDO	FL
FSS	PHILADELPHIA (SCF)	PA
FSS	PHOENIX	AZ
FSS	PROVIDENCE	RI
FSS	RALEIGH	NC
FSS	SPRINGFIELD	MA
FSS	TRENTON	NH
FSS	WESTCHESTER	NY
NDC	ST. LOUIS	MO
SCF	AKRON	OH
SCF	ATLANTA	GA
SCF	CLEVELAND	OH
SCF	GREENSBORO	NC
SCF	GREENVILLE	SC
SCF	HARRISBURG	PA
SCF	INDIANAPOLIS	IN
SCF	LEHIGH VALLEY	PA
SCF	MANCHESTER	NH
SCF	MEMPHIS	TN
SCG	SPRINGFIELD	MO

Federal Stimulus Bill

As we have all likely seen in the media, Congressional leaders have been meeting and could be close to an agreement on a second package of Covid-related stimulus. There are several versions being considered in the halls of Congress, and Quad has been working with our friends and allies on the Hill to make sure that mailers are part of whatever gets passed.

The good news is that every proposal being considered includes a $10 billion appropriation for the USPS. This money replaces the same amount that was included in the CARES Act, but this time it’s not a loan. Instead, the Postal Service will receive a straight appropriation that doesn’t have to be repaid.

It is important to know that in order to get enacted, we need Congress to come together on the rest of the $900 billion package and hopefully get it passed quickly. There is some time pressure as the government will shut down at the end of the day Friday, December 18. It’s likely the votes would come this weekend. Quad will continue to watch any Congressional developments as they happen.

Pricing

The industry still waits to hear how the USPS will implement new pricing authority given by findings in the PRC’s 10-Year Review report. It published its final ruling in the Federal Registry earlier this week, which starts the 30-day clock for making it official. Quad is a member of several industry associations, which will be filing an appeal on the PRC decision.

Any price changes that are yet to come wouldn’t take effect until July 2021 at the earliest, as we detailed in our previous Postal Update. Quad continues to explore all avenues for insights as we help our customers plan budgets for next year.

Mail volume from last week, compared to 2019:

Total: Down 6.1%

• Packages: Up 15.1%
• Single Piece: Down 6.5%
• Presort First Class: Down 7.7%
• Marketing Mail: Down 4.2%
• Periodicals: Down 36.7% (potentially due to challenges with timely unloading of trucks)

Delayed Facilities

Flats

Entry Type	City	State	In-Home by Service Standard %	Consecutive Wks. Delayed
ASF	BUFFALO	NY	17%	1
ASF	OKLAHOMA CITY	OK	65%	2
ASF	PHOENIX	AZ	9%	1
FSS	AKRON	OH	0%	1
FSS	ORLANDO	FL	68%	1
FSS	RALEIGH	NC	67%	3
FSS	ROCHESTER	NY	4%	2
SCF	AKRON	OH	43%	3
SCF	ALBANY	NY	25%	2
SCF	ATLANTA	GA	32%	4
SCF	AUSTIN	TX	16%	1
SCF	BIRMINGHAM	AL	7%	1
SCF	BISMARCK	ND	36%	3
SCF	BOSTON	MA	36%	1
SCF	BROCKTON	MA	5%	9
SCF	BUFFALO	NY	18%	2
SCF	CENTRAL	MA	52%	1`
SCF	CHAMPAIGN	IL	17%	1
SCF	CINCINNATI	IL	0%	1
SCF	CLEVELAND	OH	0%	1
SCF	COLUMBUS	OH	39%	1
SCF	DALLAS	TX	69%	1
SCF	DAYTON	OH	16%	1
SCF	DES MOINES	IA	55%	1
SCF	DETROIT	MI	6%	1
SCF	EVANSVILLE	IN	2%	4
SCF	FORT WORTH	TX	67%	1
SCF	GREENSBORO	NC	12%	11
SCF	GREENVILLE	SC	39%	5
SCF	HARRISBURG	PA	14%	1
SCF	HARTFORD	CT	0%	1
SCF	INDIANAPOLIS	IN	61%	1
SCF	JACKSON	MS	0%	2
SCF	JACKSONVILLE	FL	10%	3
SCF	KANSAS CITY	MO	6%	3
SCF	KNOXVILLE	TN	57%	1
SCF	LEHIGH VALLEY	PA	26%	2
SCF	LINTHICUM	MD	31%	1
SCF	LITTLE ROCK	AR	29%	4
SCF	LOUISVILLE	KY	39%	2
SCF	MADISON	WI	25%	4
SCF	MEMPHIS	TN	38%	1
SCF	METROPLEX	MI	2%	6
SCF	MIAMI	FL	20%	2
SCF	MID HUDSON	NY	36%	2
SCF	MID ISLAND	NY	36%	1
SCF	MIDDLESEX-ESSEX	MA	51%	1
SCF	MILWAUKEE	WI	45%	1
SCF	MINNEAPOLIS	MN	20%	2
SCF	MONTGOMERY	AL	29%	2
SCF	NEW YORK	NY	69%	1
SCF	NORTH HOUSTON	TX	67%	1
SCF	NORTH METRO	GA	15%	3
SCF	NORTH TEXAS	TX	8%	1
SCF	OKLAHOMA CITY	OK	55%	1
SCF	ORLANDO	FL	42%	3
SCF	PHILADEPHIA	PA	57%	2
SCF	PHOENIX	AZ	28%	2
SCF	PORTLAND	OR	36%	2
SCF	PROVIDENCE	RI	64%	4
SCF	QUAD CITIES	IL	65%	1
SCF	RALEIGH	NC	14%	4
SCF	RICHMOND	VA	24%	1
SCF	ROANOKE	VA	19%	2
SCF	ROCHESTER	NY	1%	2
SCF	SAINT LOUIS	MO	25%	1
SCF	SAINT PAUL	MN	0%	3
SCF	SALT LAKE CITY	UT	38%	2
SCF	SAN ANTONIO	TX	68%	1
SCF	SAN DIEGO	CA	64%	2
SCF	SHREVEPORT	LA	55%	1
SCF	SOUTH SUBURBAN	IL	17%	6
SCF	SOURTHERN	ME	0%	1
SCF	SPOKANE	WA	49%	2
SCF	SPRINGFIELD	MO	0%	1
SCF	TALLAHASSEE	FL	26%	2
SCF	TRAVERSE CITY	MI	49%	1
SCF	TULSA	OK	58%	1
SCF	WENATCHEE	WA	33%	1
SCF	WESTCHESTER	NY	61%	2
SCF	WHITE RIVER JCT	VT	64%	1
SCF	WILMINGTON	DE	5%	1

Flats Delayed NDC’s:

NDC	ATLANTA	GA	57%
NDC	CHICAGO	IL	15%
NDC	KANSAS CITY	KS	37%
NDC	MPLS/STP	MN	39%
NDC	PHILADELPHIA	PA	48%
NDC	SEATTLE	WA	51%
NDC	SPFLD	MA	0%
NDC	ST. LOUIS	MO	12%
NDC	WASHINGTON	DC	55%

Letters:

Entry Type	City	State	In-Home by Service Standard %	Consecutive Wks. Delayed
SCF	AKRON	OH	6%	6
SCF	ATLANTA	GA	56%	1
SCF	AUSTIN	TX	66%	1
SCF	BIRMINGHAM	AL	64%	1
SCF	BISMARCK	ND	23%	2
SCF	CINCINNATI	OH	51%	2
SCF	CLEVELAND	OH	11%	9
SCF	DAYTON	OH	65%	2
SCF	DETROIT	MI	68%	2
SCF	EASTERN	ME	43%	2
SCF	GREENSBORO	NC	12%	11
SCF	HARRISBURG	PA	48%	2
SCF	INDIANAPOLIS	IN	49%	2
SCF	LEHIGH VALLEY	PA	31%	2
SCF	LINTHICUM	MD	59%	2
SCF	MOBILE	AL	60%	2
SCF	NASHVILLE	TN	60%	2
SCF	PHILADELPHIA	PA	66%	1
SCF	SOUTHERN	ME	13%	2
SCF	SPRINGFIELD	MO	64%	1
SCF	WILMINGTON	DE	37%	2

Letters Delayed NDC’s:

NDC	PITTSBURGH	PA	62%
NDC	SPFLD	MA	46%