Postal Service Files Market Dominant Price Change

On January 15th, the Postal Service filed for a Market Dominant price increase based on the full CPI cap of 1.966%. If approved by the Postal Regulatory Commission (PRC), then the new rates will go into effect on April 26, 2015. The filing also included a statement regarding above average increases for mail classes that are currently “underwater”. The Alliance of Nonprofit Mailers stated that the above average increases will likely affect Standard Mail Flats and Periodicals. The USPS has attempted to increase mail classes above CPI in the past, but they do not always get approved by the PRC as the USPS has specific regulations they must follow when filing for rate adjustments.

Furthermore, the Court of Appeals has still yet to rule on the Postal Service’s Exigent Surcharge Appeal Case; which if won, would cause the 4.3% rate increase applied in January 2014 to become permanent. We can only hope that this appeal is denied and rates can be reduced at some point in 2015.

Click here to view the exact details of the Postal Service Industry Alert.