It’s always relaxing to watch the snow pile up on my office windowsill on these chilly winter mornings. However, today the tranquility was interrupted by the loud hum of our local postal delivery Jeep clamoring up the road. Conditions outside were pretty slick so I was surprised to see her making her deliveries so early. It reminded me of the recent rumors that the US Postal Service is going to discontinue Saturday delivery service. I wondered what affect that would have, if any.

Rumors begin in mid 2009 that the US Postal Service will discontinue delivery service on Saturdays to help reduce the $7.8 billion loss projections for the 2010 fiscal year.  Despite that, the President’s budget for fiscal year 2011 includes language that suggests the administration does not support that change.

In a recent article by DMNews Joseph Corbett, the Postal Service’s CFO and EVP said that the elimination of Saturday delivery is “the single most effective way to reduce costs,” especially as mail volumes decline and are not expected to return to their earlier levels of 200 billion pieces.

The article goes on to explain how Congress has reacted to the plan.

This month, the Postal Service plans to release its operational plan for transitioning to five-day-a-week delivery. However, there has been little enthusiasm in Congress for service reductions, even as lawmakers acknowledge the USPS’ dire financial situation. Many members of Congress have urged the agency to look at other ways to reduce costs rather than eliminating Saturday delivery.

By eliminating Saturday delivery and processing, the USPS could reduce costs by approximately $3.5 billion annually. Furthermore, this would help to avoid the need for a rate increase in 2010. However, many have argued for a 20% rate increase to avoid such a dramatic change in service. Corbett argues that a rate increase would only contribute to the falling volume of mail and make budget matters worse.

I think most direct mailers would prefer to lose their Saturday service in lieu of a 20% rate increase. What do you think? Sound off on our comments section below!

Read the original DMNews article.