Jessica Lowrance, the President-Elect of the Association for Postal Commerce, has argued that the US Postal Service (USPS) must use the tools at its disposal to give the Postal Regulatory Commission (PRC) the data it needs make informed decisions about the current system of rate regulation and how to move forward in its review.
Read MoreCongressional watchdogs have said dropping Saturday deliveries would save the US Postal Service a “significant” amount – but just how much was “uncertain”.
Read MoreIt’s official that postal rate increases will follow the Postal Reform bill passed 11 months ago. The U.S. Postal Service’s Board of Governors announced that future price increases will be tied to the Consumer Price Index (CPI), or rate of inflation, for mailing services that include First Class, Standard Mail, and periodicals.
The BOG said future prices would be adjusted using new regulations issued by the Postal Regulatory Commission (PRC) on Oct. 29. The board’s decision is consistent with the Postal Reform and Accountability Act, which calls for a rate-increase cap that ties future postage increases at or below the rate of inflation. It also has strict criteria regarding conditions for emergency rate increases.
Technically, the BOG could have filed one final rate case under the old regulations in place since 1971, but voted to proceed with the new pricing regulations. “We thank the Postal Regulatory Commission for completing the new rules eight months ahead of the statutory deadline,” Postmaster General John E. Potter said in a release. “This delivers one of the main goals of the new law for business mailers–a predictable price schedule.”
With the new pricing regulations, the Postal Service has more flexibility for shipping services, including bulk parcels and expedited package services such as Priority Mail and Express Mail. “We intend to use this new flexibility to grow our competitive business offering volume discounts and contract pricing,” Potter said. “There are still many details to be worked out, but we look forward to partnering with the PRC and our customers to maximize the advantages of the new pricing rules.”
Read MoreThinking out of the P.O. box
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