The Postal Regulatory Commission (PRC) has declined the USPS’s request for a 5.6% increase, which had been proposed to take effect in January 2011, and was filed under the Extraordinary Circumstances rule. The Extraordinary Circumstances rule allows the USPS to increase rates above the CPI rate cap during “exceptional or extraordinary circumstances”. This is great news! HOWEVER – the USPS is still allowed to raise rates up to the CPI cap without approval from the PRC. The CPI is expected to be in the area of 2.5%. An increase equivalent to the CPI could take effect as late as May 2011, however, it is believed that the USPS will attempt an earlier implementation. Under the current circumstances, I would highly recommend that you expect that there will be a 2.5% increase in your USPS distribution rates in 2011 – more than likely prior to May.
There are many articles posted that only tell you that the proposed rate hike was denied by the PRC leading publishers to believe that they will not see any increase in 2011. Not knowing the “whole story” could cause your business some pain. Again, expect a 2.5% increase and be pleasantly surprised if it doesn’t happen.
via : Postal Rate Increases for 2011 Denied! HOWEVER – Expect Increases!.
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