USPS Yet to Submit Revised Rate Proposal

Production Solutions

As of April 14th, the Postal Service has still yet to submit a revised rate proposal to the PRC. Even if they would submit today, it will take 7 days before it would be approved and another 45 days until it is implemented; which would put the increase in early June. Since the Exigent Appeal is still with the Court of Appeals, the industry is speculating that the USPS won’t want to change rates in June and again in August (if the exigent surcharge is removed). Therefore, it is likely that the USPS will wait for either an appeal ruling or until they have to remove the exigent increase before making a rate change. If they wait to file in August, then they can drop the current CPI increase and file a new one that will take advantage of the additional months of cumulative CPI. Meaning, the current 2% CPI increase would be recalculated and increased to 3-3.5%. Fingers crossed that the exigent surcharge will be dropped and will nullify any increase that is applied, with the potential of rates decreasing by a point or so.