USPS Files for Rate Increase

On Tuesday, April 9, 2024, the USPS filed its Notice of Market-Dominant Price Change with the PRC. As predicted in the March 25 issue of Mailers Hub News (login required), the Postal Service is seeking the maximum possible increase the rate authority will allow. As stated in the filing, “The Postal Service has available approximately 7.8 percentage points of pricing…

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OIG Audit Cites Extensive Problems at Richmond RPDC

As Postmaster General Louis DeJoy presses on with his Plan to transform the Postal Service’s collection, processing, transportation, and delivery networks, an audit of the first regional processing and distribution center opened under his Plan found a wide variety of problems. The OIG summarized the transition of operations into the new RPDC: “In July 2023, the Postal Service completed the…

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PRC Approves Zone 10, Faults Unresponsive USPS

On March 22, the Postal Regulatory Commission approved a Postal Service proposal, filed November 22, 2023, to add a new Zone 10 to the prices for Priority Mail Express, Priority Mail, and USPS Ground Advantage.  The USPS had stated in its filing that, if approved, the new Zone 10 prices would be effective at a future date, but no sooner…

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“Local Transportation Optimization” Impacts Service

Under Postmaster General Louis DeJoy, and in conformance with his 10-Year Plan, the Postal Service has obsessively pursued measures to fill trucks and reduce transportation, all in the name of “efficiency.” Initially called “Optimized Collections,” but since renamed the “Local Transportation Optimization,” the initiative’s objective is the same: run only one trip from the processing facility to local post offices…

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PRC Estimates Value of USO and Monopolies

Every year in its annual report, the Postal Regulatory Commission provides its estimate of the value of the Postal Service’s monopolies over the delivery of some hard-copy mail and access to the mailbox.  At the same time, the PRC estimates the cost to the USPS for its Universal Service Obligation.  Both figures are for the prior full fiscal year.  On…

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“Pilot Test” Continues Adrift

Usually, when the Postal Regulatory Commission allows the Postal Service to conduct a test of a potential new product or service, there’s a finite arc of related events, such as a proposal by the USPS, review by the PRC, and establishment of a test with reporting requirements and specific start and end dates.  Over the test period, results are reported…

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Finger-pointing Follows Withdrawal of PCH NSA

As the saying goes, “Success has many parents while failure is an orphan.”  To a degree, this may apply to the stillborn negotiated service agreement with Publishers Clearing House that the Postal Service had filed last August 11.  That filing was different from other NSAs in that it was for market-dominant mail, not competitive products.  As the USPS stated in…

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The April USPS Price Increase

Understanding USPS rate filings is much, much more than just knowing how much more postage will cost. Staying on top of USPS rate filings and understanding how the far-reaching impact of these changes affects many areas of your business is critical. More so now than ever, now that they’re rolling out every six months. Understanding and adapting are extremely time-sensitive.…

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