e-idea file



USPS Retail, Commercial Rates Set to Decrease April 10, 2016

Effective April 10, 2016, a recession-era surcharge on postal rates will expire, and the USPS will effectively decrease postage rates. The surcharge will lower rates from $.005 to $.05 (one-half to five cents) per piece, depending on the size and weight. The rate adjustment applies to both retail and commercial classes of mail.

The last time postal rates fell like this was approximately 100 years ago, during World War I, making this a historic decrease. This rate change marks only the third reduction in USPS postage costs in U.S. history.

The surcharge was imposed on December 24, 2013, and was billed at the time as an emergency measure so that the USPS could recoup losses it incurred during the 2008-2009 recession. The USPS posted losses of over $7 billion in 2009 alone.

The USPS opposes the rate decrease, and lobbied for the emergency surcharge to become permanent. Postmaster General and CEO Megan J. Brennan emphatically stated that the surcharge's emergency relief only partially offset the overall losses, and removing it will result in new losses for the USPS of upwards of $2 billion per year. The USPS is still experiencing a decline in volume and revenue for its market dominant products, especially First-Class mail.

Sample rate adjustments include retail letters, which will fall from $.49 to $.47; standard letters (mixed AAD), which will fall from $.304 to $.291; and standard flats (mixed AADC), which will decrease from $.569 to $.539.

Call your sales representative to see how much lower the postage for your mailings will be!


return to e-idea file article list