Mail delivery suffers

The internet is making it tough for small letter delivery.
The internet is making it tough for small letter delivery.

The Federal Government-owned enterprise this week to announce 900 job losses and began a campaign to reduce its five-day a week mail service, which is currently required by legislation, to three days.

According to its 2013 Annual Report, Australia Post lost $147.4 million, up 22 per cent from 2012, on small letter regulary main delivery.

By contrast, the use of local post offices is growing, as overseas internet shopping and parcel deliveries continue to surge.

Australia Post’s parcel delivery and express post services business returned a profit of $354.8 million in the same period, up 13 per cent from 2012.

Underpinning the result was growth in domestic parcel volumes of 9.3 per cent.

The impact on the delivery of regular mail has been even more dramatic in the United States.

The $US67 billion US Postal Service delivers mail six-days-a-week but has endured massive losses of $US38 billion since 2007. Small letter mail delivery is responsible for about half of those losses, with the majority of homes failing to receive a single letter on any given day.