Supreme Court Denies UPS Appeal

by | May 22, 2019

2 min read


The U.S. Supreme Court Declines to Hear U.S. Postal Service Case

In a decisive win for the U.S. Postal Service and Amazon, the U.S. Supreme Court rejected an appeal from UPS challenging the current pricing methods that USPS uses.

The goal: Force USPS to raise its prices for delivering packages.

According to UPS, “postal pricing has departed from Congress’s requirement that the Postal Service compete on a level playing field with private companies for package delivering.”

In declining to hear the case, the Supreme Court has backed the lower court decision that upholds the pricing method currently used by USPS. In doing so, the Supreme Court has empowered the USPS and Amazon, which uses USPS for delivery.

While the Supreme Court has sided with USPS and Amazon, the companies are not out of the woods yet. The Trump administration recently created a task force designed to examine the USPS’s pricing. In a report issued in December, the task force recommended that USPS should increase their prices.

If the Trump administration or Congress were to take action on the pricing methods, it would be a huge loss for both USPS and Amazon.

The Pitfalls of Amazon’s One-Day Shipping

While many customers are eager to enjoy the convenience of Amazon’s one-day shipping, there may be a looming danger behind the innovation.

In order to execute their rapid shipping, Amazon will rely on Air Hubs, like the main hub the company recently opened in Northern Kentucky. By using cargo planes, Amazon will be able to get packages out to customers faster than ever before.

The only problem: Pilots say that one-day shipping will put efficiency over safety, and have pilots up in the air too often. Robert Kirchner, a chair of the executive council of Atlas Air, believes that Amazon’s air shipping will contribute to the already thinning force of pilots.

“There’s a large uptick in fatigue calls, sick calls, pilots are just being worn out,” Kirchner said. “There are a lot of canceled flights, a lot of delayed flights, due to the pilot shortage and the staffing stressed operation, and that doesn’t bode well for the future of this enterprise that Amazon is breaking ground on today.”

It remains to be seen whether fatigued pilots will be able to keep up with Amazon’s latest shipping venture.

Topics: Amazon, Customer Experience, Distribution Network, UPS, USPS