Supply Chain Optimization

US Postal Service (USPS) Subsidizes China

Hard to believe, but it is often cheaper to ship a parcel from China to a US address than from another state.  A vendor in New Jersey showed it cost him $6.30 to ship a parcel that cost a Chinese shipper a mere $1.30.  I have experienced something similar when buying from China (including Hong Kong) on eBay. Why? The USPS charges other nations what are called “Terminal Dues” for delivering the mail.  According to an audit by the Government Accountability Office, these rates don’t cover the actual cost.   Summary – the US is subsidizing China (and a few other “Group 3” underdeveloped A.K.A subsidized nations) and penalizing domestic shippers.  

 
Class 8 tractor sales have gone from being down 30-40% to up over 100% from last year.  This is good news – if, and only if, they can put drivers in the cabs at a reasonable cost!