Increased shipping costs in today’s Covid business environment is not new to shippers or to John Q. Public for that matter. Add to that, rising inflation that we are beginning to experience and you can see an opening of the door to ever higher postage rates. So, the U.S. Postal Service has announced a new rate hike schedule terming it “New Market Dominant Price Adjustment Schedule” and their intention is to raise postage rates twice a year going forward, but thank Goodness, not this coming January giving mailers a breather after two rate hikes in 2021.
The Postal Service states in its September 15th announcement, “to help customers better prepare for a new Market Dominant price adjustment schedule, the Postal Service will not raise prices on Market Dominant products, including Forever stamps, in January 2022.”
Instead, the next Market Dominant price adjustment is scheduled to be implemented in July 2022. Beginning January 2023, Market Dominant price adjustments will occur twice a year, (e.g. January 2023, July 2023, January 2024, July 2024, etc.). Market Dominant products include First-Class Mail (FCM), USPS Marketing Mail, Periodicals, Package Services and Special Services.
The July 2022 rate authority will include ten months of Consumer Price Index, (CPI) plus retirement, density, and non-compensatory class authorities as determined by the Postal Regulatory Commission (PRC). The January rate authority will include six months of CPI, plus any unused rate authority. Subsequent July rate authority will include six months of CPI plus the retirement, density, and non-compensatory class authorities and any remaining unused rate authority according to USPS.
The Postal Service has submitted an official statement reflecting the above schedule with the PRC. The statement gives estimated filing and implementation dates for future adjustments of each mail class over the next three years. To put mailers at ease, the Postal Service states that “it has some of the lowest letter mail postage rates in the industrialized world and also continues to offer a great value in shipping.” But is that any consolation? We think not!
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