Package delay+skyrocketing shipping costs+customs clearance freeze: USPS strike triggers' triple crisis' for cross-border sellers
Date：2025-03-27 09:07:00 View：
On the early morning of March 23rd local time, after the United States Postal Service (USPS) announced the launch of its "Strategic Restructuring Plan," postal unions across the United States simultaneously launched a "Red Alert" strike action in over 200 logistics hubs in 50 states.
This sudden event, dubbed by The Wall Street Journal as the "Logistics 911," has caused the world's largest postal network, which handles 320 million packages per day, to come to a standstill. Logistics alerts on e-commerce platforms such as Amazon and AliExpress have been raised to the highest level, and package delays, soaring costs, and a surge in return rates are imminent.
Background of Strike
According to the "2030 Reform White Paper" submitted by USPS to Congress, the company plans to:
1. Cut 10000 core positions (1.5% of total workforce) within 30 days
2. Close 6234 grassroots service outlets (12% of the total)
3. Implement the 'Voluntary Resignation Compensation Plan', providing up to 18 months of salary compensation
The plan has sparked a strong backlash from the American Postman Association (NALC), with union president Fredric Rolando accusing it of "dismembering the public service system, and we will fight until the very end
A fiscal black hole lasting for 18 years
The latest financial report from USPS shows:
Net loss of $9.5 billion in fiscal year 2024 (a year-on-year increase of 37%)
Employee pension liabilities reach $126 billion
The average daily email processing volume has decreased by 43% compared to the peak in 2006
Of particular note is that the annual losses caused by "waybill fraud" amount to 2.8 billion US dollars, and cross-border parcel business has become the main source of losses. The problem of excessive running of water surface orders and other issues further exacerbates the situation of losses. In order to alleviate financial pressure, USPS has signed an agreement with the US Department of Efficiency (DOGE) to cut expenses and assist with layoffs.
Strike escalation
The American Postman Association (NALC) is calling on postal workers across the United States to go on strike on March 23rd under the slogan "Hell No. Key logistics nodes such as the Port of Los Angeles (handling 1.3 million Chinese packages per day), O'Hare Hub in Chicago, and Anchorage in Alaska are at the forefront.
The sorting stagnation caused by strikes may trigger a snowball effect of package delays, causing serious impacts on the national logistics system.
Strike impact
Short term crisis (1-3 months)
The risk of "warehouse explosion" in the core hub: Strike may cause sorting operations to stagnate, and package delays may last up to 3-5 days. For every day of delay at key nodes such as the Port of Los Angeles, it takes several days to digest the backlog of packages, leading to a sudden increase in inventory turnover pressure for small and medium-sized sellers.
Double kill of return rate and cost: For high-frequency return categories such as clothing and 3C accessories, the return rate may increase by 3% for every day of logistics delay. At the same time, sellers may temporarily switch to high priced commercial express delivery (such as FedEx, UPS) to cope with logistics delays, further compressing profit margins.
Long term crisis (6-18 months)
The increase in shipping costs is a foregone conclusion: Referring to FedEx's average annual growth rate of 5.9% in the past three years, after USPS privatization, cross-border logistics costs may climb from 18% -22% of sales to over 25%.
Weakened customs clearance privileges: The fast customs clearance advantage enjoyed by USPS as a member of the Postal Union may disappear due to privatization. The customs clearance time at ports such as Chicago and Los Angeles may be extended from 1.8 days to 3-5 days, which will significantly affect the logistics efficiency of low-priced packages (such as B-class parcels below $800).
Despite the shadow of a strike, USPS is still pushing forward with the "USPS Delivery Plan" in an attempt to reverse the decline by optimizing services. The plan includes service standard stratification and cost saving measures, such as optimizing transportation networks, extending post office service hours, etc., with the goal of saving $36 billion within ten years, and launching tools such as interactive maps and API interfaces to enhance logistics predictability.
However, the trust crisis and privatization controversy caused by the strike may offset the effectiveness of the reform. The US Postal Service strike is not only a microcosm of labor management competition, but also a warning of the fragility of the global logistics chain.