Effective April 10, 2016, the USPS will decrease postage rates by removing an exigent surcharge on mailing products and services that was imposed on December 24, 2013. The rate decrease affects both retail and commercial classes of mail. Rates will fall an average of 1 to 2 cents per piece, depending on the class of mail.
The 4.3% surcharge increased rates as an emergency measure to enable the USPS to recoup losses caused by the Great Recession of 2008-2009, which they claim amounted to over $7 billion in 2009 alone.
While the Postal Regulatory Commission (PRC) did approve the USPS’s request for an exigency surcharge, they capped it at $4.6 billion. Prices for mailing services are regulated by the rate of inflation capped by the Consumer Price Index, with special exceptions made for exigent pricing only in response to extraordinary circumstances.
The strict recovery cap was imposed due to a difference of opinion between the USPS and the PRC regarding the extent of the impact caused by the Great Recession. According to Postmaster General and CEO Megan J. Brennan, the financial relief provided by the exigent surcharge only partially offset the overall losses. Removing the exigent surcharge will result in net losses for the USPS of $2 billion per year in a period of declining volume and revenue for market dominant products, especially First-Class Mail.
The April 10th rate change marks only the third postage reduction in U.S. history.
Sample Rate Adjustments:
|Retail Letters (1 oz.)||.$.49||$.47|
|Standard Letters (Mixed AADC)||$.304||$.291|
|Standard Flats (Mixed AADC)||$.569||$.539|
Not sure how the April 10th rollback will affect you? Our postal experts are always available to walk you through the USPS maze and help you get the lowest rates possible.