Information extracted from the Mailers’ Technical Advisory Committee (MTAC), ADRFCO notes and other sources
Exigent Surcharge Update
The Postal Regulatory Commission (PRC) has denied the Postal Service’s request to make the Exigent increase of 4.3% permanent. The original purpose of the exigent increase was for the Postal Service to recoup their losses from the Great Recession of 2008-2011. The PRC originally approved the exigency as a temporary surcharge and are standing by that ruling.
- The 4.3% Increase is to remain as a surcharge until January 2016 or until the USPS recoups their losses; whichever comes first.
- Based on the Postal Service’s current financials, the surcharge will likely be removed in the summer of 2015.
- The PRC requested formal comments from the mailing industry on how we would like the next pricing adjustment conducted. The feedback was strongly in favor of one price change in 2015, which would include the 2015 CPI increase and the removal of the 2014 exigent surcharge.
- The Postal Service recently conducted a similar survey to mail owners; those results have not yet been disclosed.
At a meeting of the Association for Postal Commerce recently, Postmaster General Patrick Donahoe said that the Board of Governors would not seek an increase in mail and shipping product services this January. As a result, current rates will stay in effect during the extended holiday season and through the early part of 2015 – this will be gentle on everyone’s budget. Most important, because of the delay, the earliest a rate increase could take effect would be March.
Want to read more about the MTAC meeting details, visit http://ribbs.usps.gov.