The American Postal Workers Union (APWU) and the National Association of Letter Carriers (NALC) held a strike rally on Sunday to protest against the privatization of the United States Postal Service (USPS).
Due to the strike, various USPS-related and affiliated channel services are expected to experience delays to varying degrees. These services include USPS GA, USPS PM, UPS MI, UPS Smartpost, FedEx Surepost, Amazon Shipping, and DHL eCommerce.
Reasons Behind the USPS Strike
The catalyst for this wave of protests was a letter from Postmaster General Louis DeJoy to Congress. In the letter, he announced that USPS had signed an agreement with Elon Musk’s Department of Government Efficiency (DOGE) to downsize 10,000 jobs through “early retirement” and to close more than 6,000 post offices.
This move has severely impacted the existing USPS system and triggered strong opposition from postal employees.
On March 23, 2025, U.S. postal unions held large-scale local rallies to express their firm opposition to dismantling postal services.
The scale of this strike is unprecedented, with protest locations set up across almost every state in the country.
However, DeJoy’s letter is merely the trigger; the root cause of the strike lies in the USPS privatization reform.
For years, USPS has struggled to cover expenses through revenue from product and service sales. Although USPS reported a net income of $144 million in the first quarter of this fiscal year, the agency still suffered a $9.5 billion loss last year.
Under the banner of opposing “the Trump administration’s misuse of public resources,” Musk’s DOGE department is pushing for the full marketization of the postal system.
However, this move has met with fierce resistance from the National Association of Letter Carriers (NALC) and USPS employees, ultimately leading to the massive strike.
This controversy not only determines the future of USPS but also significantly impacts global cross-border e-commerce businesses.
Impact of the USPS Strike
The effects of USPS reforms began surfacing two weeks ago, with some logistics providers already issuing system-wide announcements. Now, the situation is escalating rapidly. Businesses should brace themselves for potential disruptions.
1. Short-Term Impact: Severe Challenges for Cross-Border Logistics Efficiency
Take the Port of Los Angeles, for example. This port handles approximately 40% of the U.S.’s cross-border small parcels, processing 1.3 million packages from China daily. If the strike leads to parcel backlogs, even a one-day delay could result in multi-day lags, significantly affecting the cross-border logistics industry.
2. Mid-to-Long-Term Impact: Rising Logistics Costs and Increased Customs Uncertainty
With privatization, USPS may revise its pricing structure. Given that FedEx’s ground package service has increased prices by an average of 17% in recent years, logistics costs for cross-border sellers targeting the North American market could rise from the current 18%-22% range to over 25%, further squeezing profit margins for small and medium-sized sellers.
Additionally, USPS, as a member of the Universal Postal Union (UPU), enjoys fast-track customs clearance privileges. If privatization weakens these privileges, the average retention time for cross-border parcels at key ports such as Chicago and Los Angeles could extend from the current 1.8 days to 3-5 days. Low-value category B shipments (valued under $800) will be particularly affected, leading to a decline in overall customer satisfaction.
3. Response Strategies: Proactively Planning Shipment Solutions to Mitigate Risks
In light of the risks posed by USPS privatization and potential strike actions, cross-border e-commerce businesses must take proactive measures.
Sellers are advised to plan their shipping strategies in advance and diversify their logistics channels to reduce dependence on a single service provider.
Besides USPS, consider using alternative logistics providers such as FedEx, UPS, and DHL to spread out the risk.
Additionally, strengthening partnerships with logistics suppliers can ensure timely support during critical periods. For instance, stocking goods in overseas warehouses can reduce reliance on cross-border logistics and shorten delivery times.
Finally, closely monitor developments in USPS privatization and related policy changes to adjust strategies accordingly.
