Snail Mail Pushes Pause on Postal Rate Changes

The latest postal rate changes, -- most of them increases -- will be lost in the mail, at least temporarily, as the United States Postal Service recently announced it won't start charging new, higher postage rates on certain forms of mail and shipping until it resolves all of its proposed market-dominant price hikes with the Postal Regulatory Commission. The PRC has twice before taken issue with the USPS's proposed rate hikes as they pertain specifically to periodical mailings, package services and standard mail sorting and delivery. The PRC has cited several issues and various errors for its two previous remands.

To be fair, the proposed USPS rate changes do include lower rates for some parcel select and first-class, 1-ounce flat mailers; and no changes at all to the current rates for first-class, 1-ounce letter stamps (still 49 cents), and flat-rate/domestic priority mail, but there are nine rate hikes in the offing if the entire proposal is implemented.

Rate increases would affect the following: Global Express, first-class postcards (34 to 35 cents), media mail, first-class packages (5.1% increase), parcel select/ground packages, international first-class mail ($1.15 to $1.20 for letters and postcards), metered first-class letters (from 48 cents to 48.5 cents per letter), international priority mail (approximate 5.5% increase), and additional ounces for first-class letters (21 to 22 cents). All extra USPS services, such as postal tracking, electronic certified mail and return receipts, and electronic and signature confirmation for delivered packages will also likely go up in cost.

The USPS issued this official press statement late last month:

"The Postal Service Governors decided today to delay the implementation of new market-dominant and competitive rates and classification changes until all of our proposed market-dominant changes are approved by the Postal Regulatory Commission (“PRC”). This decision was primarily motivated by a desire to eliminate potential adverse impacts on postal customers that might result from a staggered implementation of our new prices. After considering the complexity of the required programming changes in view of the remand of some of our proposed changes by the Postal Regulatory Committee, the specific complications that our customers might face; the potential cost to the supply chain as a whole of a staggered implementation, the Postal Service has decided to delay implementation until all of our proposed rates and classification changes can be implemented at one time.

"While proposed prices for First Class Mail, Special Services and Competitive Products have all been approved by the PRC, prices for the Standard Mail, Periodicals and Package Services classes have twice been remanded back to the Postal Service by the PRC for a wide array of technical and other concerns that are primarily related to the complexities of the price cap and the manner in which it is calculated. Rather than subject our customers to a piecemeal implementation of our new prices, the Postal Service has decided that the best course of action would be to wait until our complete price proposal is approved by our regulator. We have no desire to saddle our valued customers with the additional costs and burdens of a staggered implementation while we work with the PRC to obtain final approval of our remaining prices. We will set a new implementation date when we propose new prices for Standard Mail, Periodicals, and Package Services in response to the PRC’s March 18th remand order."

The new rates were scheduled to take effect on April 26, 2015, but with the USPS' self-imposed delay. Any updates will be posted as soon as we hear about them.