Just my 2 cents guys.
It seems to me that 99 times out of 100 the system, such that it is, works and works very well. The boxes may be a weak link in the case of shipping boards. However, you can't see it in this case but the box was obviously wet and as such caused the box to fail when it was handled in a rough fashion. I'm not sure but these boxes are probably made from recycled paper. The difference here is that unlike regular boxes, when recycled paper gets wet as many are aware, it turns to papier mache.
Anyway, unfortunately, the offial response from the lady at the USPS front counter is "It's not insured,... Sorry."
I did not say it but wanted to tell her (actually not her,... the USPS) I think the USPS in "this" case should at the very least refund the shipping. At the very least there was an exchange of money for a service that was not provided.
my 2 cents.
Leon