Forget April 26 – 2015 Postal Rate Adjustments Have Been Delayed

The First Class postal rate increase expected to be implemented on April 26 has been granted a temporary reprieve while the Postal Service negotiates with the Postal Regulatory Commission on rate changes for other classes of mail that have yet to be approved. No new effective dates have been proposed as of yet, but generally a minimum of 45 days’ notice is provided prior to implementation.

The Official USPS Announcement from March 27, 2015:

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.

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About the author

Postal Compliance Officer

Diane has 40 years of experience in the areas of print and mail including production, commingling and postal compliance. As postal compliance officer, Diane ensures postal compliance for Venture Solutions and works to achieve optimal postal benefits for Venture’s current and new clients. Prior to joining Venture Solutions in 2003, Diane was serving as the production manager with IC System, which was acquired by Venture in 2003.