Postage Update

Originally, the exigent price increase that took place in January 2014 in order to recoup losses from the depression was set to expire in August of this year.  Due to a recalculation of the actual loss incurred, the PRC (Postal Regulatory Commission) has ruled that the USPS is entitled to collect an additional $1.191 billion.

As a result, postage rates will remain the same for the rest of 2015. Based on current volumes, it will take the USPS approximately 8 to 9 months to collect the additional $1.191 billion in losses. That means that the exigent rates should expire in the April 2016 timeframe.

The last rate increase for market-dominant products went into effect on May 31, 2015. If the USPS requests an increase for April 2016, it would go into effect at the same time that the exigent rates expire. The result would be a probable decrease in postage rates by about 3%.

We will keep you updated on any further developments.

Content Credit:  The Berkshire Company

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