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GAIN CONSULTING

USPS Leadership Change: What David Steiner’s Appointment Means for U.S. Shippers

  • Kelsea Ansfield
  • May 12
  • 6 min read


At Gain Consulting, we provide U.S. shippers with strategic insights to navigate the ever-evolving supply chain landscape. The recent announcement that David Steiner, a FedEx board member and former CEO of Waste Management, has been appointed as the U.S. Postal Service’s (USPS) next Postmaster General and CEO, effective July 2025, signals a pivotal moment for the postal service and the broader logistics industry. As the USPS continues its Delivering for America transformation plan amid pressures from the Trump administration, Steiner’s leadership could reshape parcel delivery, last-mile services, and operational efficiencies. This blog post examines the implications of Steiner’s appointment for U.S. shippers and offers actionable strategies to optimize your supply chain in 2025.


David Steiner’s Appointment: A New Era for USPS

On May 9, 2025, Amber McReynolds, chair of the USPS Board of Governors, announced that David Steiner will become the nation’s 76th Postmaster General, succeeding Louis DeJoy, who resigned in March 2025, and Acting Postmaster General Doug Tulino. Steiner, who has served on FedEx’s board since 2009 and is currently its lead independent director, brings a wealth of experience from his tenure as CEO of Waste Management (2004–2016), where he drove operational transformations, introduced new pricing models, and expanded environmental services.


The USPS highlighted Steiner’s track record of leading “tremendous change” at Waste Management, emphasizing his ability to transform operations and deliver strong financial results. “Dave is the right person to lead the Postal Service at this time to ensure this magnificent and historic organization thrives into the future,” McReynolds stated during a board meeting. Steiner is expected to assume the role in July 2025, pending ethics and security clearance processes, and will step down from FedEx’s board and manage other business interests to avoid conflicts.


Steiner’s appointment comes at a critical juncture for the USPS, which reported a $9.5 billion loss in fiscal year 2024 and faces ongoing financial challenges. The agency is midway through its 10-year Delivering for America plan, launched in 2021 under DeJoy, aimed at modernizing operations, competing with private carriers like FedEx and UPS, and achieving financial sustainability. However, the plan has drawn mixed reviews, with postal officials citing efficiency gains and critics, including some lawmakers, pointing to mail delays, postage rate hikes, and declining business.

Key Takeaway: Steiner’s extensive experience in operational transformation and his FedEx ties position him to influence USPS’s strategic direction, but his appointment raises questions about potential conflicts of interest and the agency’s independence.


Context: USPS Challenges and Trump Administration Pressures

The USPS operates as an independent federal agency with a $78 billion annual budget, primarily self-funded through postage and package revenue. It serves 169 million addresses six to seven days a week but has struggled with financial losses due to declining first-class mail volumes and a shifting parcel mix. The Delivering for America plan seeks to address these issues through measures like launching competitive parcel offerings, overhauling transportation processes, and adjusting service standards. Despite these efforts, the USPS reported a $3.3 billion net loss in Q2 2025, more than double the previous year’s loss, though package revenue and reduced transportation costs provided some relief.


The Trump administration has intensified scrutiny of the USPS, with President Trump floating ideas such as privatizing the agency or merging it with the Commerce Department to stem losses. These proposals have sparked bipartisan opposition, with 60% of voters opposing privatization, according to a survey by the American Postal Workers Union. Trump’s influence is evident in Steiner’s appointment, with reports suggesting he vetted finalists and pushed for Steiner, recommended by FedEx, though FedEx denied involvement. The administration also plans to fill four vacant seats on the nine-member USPS Board of Governors, potentially deepening its control over pricing, delivery standards, and strategic decisions.


Steiner’s FedEx ties have drawn sharp criticism from postal unions. Brian Renfroe, president of the National Association of Letter Carriers, called the appointment “an aggressive step toward handing America’s mail system over to corporate interests,” citing a conflict of interest given FedEx’s role as a USPS competitor. Mark Dimondstein, president of the American Postal Workers Union, likened it to “a fox guarding a hen house,” noting FedEx’s differing agenda. As of July 2024, Steiner owned 34,438 FedEx shares, further fueling concerns, though he has committed to divesting these interests. Steiner has emphasized his commitment to maintaining USPS’s independence, stating, “I deeply admire the public service and business mission of this amazing institution, and I believe strongly in maintaining its role as an independent establishment of the executive branch.”

Key Takeaway: The USPS faces financial and political pressures, with Steiner’s appointment raising concerns about privatization but also offering potential for operational improvements under his experienced leadership.


Implications for U.S. Shippers

Steiner’s appointment and the USPS’s ongoing transformation have significant implications for U.S. shippers, particularly those relying on the Postal Service for last-mile delivery, e-commerce fulfillment, and cost-effective parcel services:

  1. Potential Service Enhancements: Steiner’s success in transforming Waste Management suggests he could drive operational efficiencies at USPS, such as optimizing transportation networks or reducing last-mile costs. The Delivering for America plan’s focus on competing with FedEx and UPS could lead to new parcel offerings tailored for e-commerce shippers, potentially improving delivery reliability. However, past criticisms of mail delays under the plan highlight risks that must be addressed.

  2. Pricing Uncertainty: The USPS’s financial losses and frequent postage rate hikes—criticized as “unsustainable” by some lawmakers—could continue under Steiner, impacting shipping costs. Shippers should prepare for potential price increases, especially if privatization discussions advance, as private carriers typically charge higher rates for rural deliveries.

  3. Last-Mile Dynamics: The USPS has been a critical last-mile partner for private carriers, though its air cargo relationship with FedEx ended in 2024, with UPS taking over. Steiner’s FedEx background may influence future partnerships, potentially strengthening or complicating ties with private carriers. Shippers relying on USPS for final-mile delivery, such as through FedEx Ground Economy (formerly SmartPost), should monitor service levels.

  4. Privatization Risks: Trump’s privatization proposals could reduce USPS’s universal service mandate, particularly affecting rural shippers who rely on affordable USPS rates. A privatized or Commerce Department-led USPS might prioritize profitable urban routes, increasing costs for rural deliveries and forcing shippers to seek alternatives like UPS or regional carriers.

  5. Labor and Capacity Concerns: The USPS’s plan to cut 10,000 jobs through attrition in 2025 and outsource some mail-handling tasks could impact service reliability. Steiner’s commitment to engaging with unions, representing over 500,000 USPS employees, will be critical to maintaining workforce stability and avoiding disruptions.

Key Takeaway: Shippers can expect potential improvements in USPS efficiency under Steiner but must navigate risks of rising costs, privatization, and service disruptions amid political and labor challenges.


Strategic Recommendations for U.S. Shippers

To capitalize on opportunities and mitigate risks stemming from Steiner’s appointment and USPS’s transformation, Gain Consulting recommends the following strategies:

  1. Diversify Carrier Partnerships: Reduce reliance on USPS by integrating private carriers like UPS, FedEx, and regional providers into your carrier mix. For example, UPS’s air cargo partnership with USPS, established in 2024, offers reliable alternatives for time-sensitive shipments. Use platforms like Freightos to compare rates and transit times across carriers.

  2. Monitor USPS Pricing Trends: Track USPS postage rate changes through the Postal Regulatory Commission and adjust budgets to account for potential increases. Lock in rates with USPS or private carriers where possible to hedge against volatility, especially for high-volume e-commerce shippers.

  3. Leverage Last-Mile Alternatives: Explore partnerships with Amazon Logistics or OnTrac for last-mile delivery to complement USPS services, particularly in rural areas where privatization could raise costs. Amazon’s $4 billion investment in rural delivery stations supports scalable last-mile solutions. (Digital Commerce 360, April 2025)

  4. Invest in Technology: Implement a Transportation Management System (TMS) to optimize carrier selection and track USPS performance metrics, such as on-time delivery rates. AI-driven tools can forecast demand and identify cost-saving opportunities, especially for lightweight parcels suited to USPS’s competitive offerings.

  5. Prepare for Privatization Scenarios: Develop contingency plans for a privatized USPS, including identifying alternative carriers for rural routes. Engage with Keep US Posted, a nonprofit advocating for affordable USPS services, to stay informed on policy changes.

  6. Strengthen E-Commerce Capabilities: Capitalize on USPS’s parcel growth—evident in rising package revenue—by optimizing packaging for lightweight shipments to leverage USPS’s cost advantages. Partner with Gain Consulting to design e-commerce strategies aligned with USPS’s evolving services.

  7. Engage with Industry Stakeholders: Join industry associations like the Parcel Shippers Association to advocate for shipper-friendly USPS policies and gain insights into Steiner’s strategic priorities as they unfold.

Key Takeaway: Shippers should diversify carriers, monitor pricing, and invest in technology to adapt to USPS’s transformation while preparing for potential privatization risks.


How Gain Consulting Can Help

Gain Consulting is your trusted partner in navigating the complexities of the 2025 logistics landscape. We offer tailored solutions to optimize your supply chain and capitalize on USPS’s evolving role:

  • Carrier Strategy Development: Build a diversified carrier portfolio to balance cost, reliability, and capacity, integrating USPS and private carriers.

  • Cost Optimization: Analyze USPS and competitor pricing to minimize shipping expenses and hedge against rate hikes.

  • Technology Integration: Deploy TMS and AI tools to enhance visibility, streamline operations, and improve decision-making.

  • Policy Monitoring: Provide real-time updates on USPS policy changes, including privatization proposals, to inform your strategy.

  • E-Commerce Solutions: Design parcel-focused strategies to leverage USPS’s competitive offerings and drive growth.


Steiner’s appointment as USPS Postmaster General marks a critical juncture for U.S. shippers, with opportunities for enhanced services tempered by risks of cost increases and privatization.


Contact Gain Consulting today to build a resilient, future-ready supply chain that thrives in this dynamic environment.


Sources: Supply Chain Dive, May 9, 2025; Federal News Network, May 9, 2025; The Washington Post, May 7, 2025; Digital Commerce 360, April 18, 2025

 
 
 

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