Network Modernization - Local Transportation Optimization

March 19, 2024

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As part of the Postmaster General’s Delivering for America (DFA) "network modernization" plan, the Postal Service is now implementing a new transportation plan, referred to as Local Transportation Optimization (LTO).

LTO started as a pilot in two locations - the Richmond, VA area and the Green Bay, WI area. Thus far, the Postal Service is touting this as a “success.” The plan, as initially explained to the APWU, was to look at retail and/or delivery units that were anywhere from 25-50 miles away from the processing facility that services those units and change their mail/parcel pickup and drop-off to once a day in the “AM.” In the Postal Service’s most recent presentation to the APWU, they suggested that the transportation network would be “optimized” by:

  • Reducing truck trips by eliminating “PM” transportation. • Improve truck utilization by collecting outgoing volume at the same time as dropping off incoming volume; and
  • The optimization level of each office would be determined by the volume of mail at the office.

In late February, the Postal Service started up LTO in three other areas, including Phoenix, AZ; Atlanta, GA; and Portland, OR after which the Postal Service is planning to aggressively roll-out LTO throughout the nation in monthly phases through 2024. Contact your local leadership for information regarding who can tell you if LTO is scheduled for your area and when it could occur. With all aspects of the DFA plan, it could change at any time.

The National APWU leadership is concerned about how this will affect overall postal service(s). The APWU expects that the greatest impact will be in rural communities. The APWU will stand with communities where service is impacted by LTO to ensure that these communities continue to have reliable and efficient service. ■

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