Postal Governors Issue Decision, Delay Periodical Rate Increase to July 15
The good news: Postal rates for periodicals won’t rise until July 15. The bad news: It looks as though the rate schedule recommended by the Postal Regulatory Commission earlier this month will stay as is, according to a news release Tuesday detailing a decision from the Postal Governors.
Earlier this month, the regulatory commission recommended an average increase for periodicals of 11.7 percent. The recommendation came 10 months after a rate hike request from the U.S. Postal Service. Although the average increase for periodicals is 11.7 percent, some publishers and b-to-b publishing association American Business Media have said the rate structure, based on a highly contentious alternative rate proposal from Time Warner, could increase rates as much as 20 to 35 percent for publishers that are unable to co-mail.
The 23-page decision from the Postal Governors acknowledges that some publishers will face substantial increases and have limited options to become more efficient and to mitigate the increase. But it also says that the Postal Regulatory Commission has moderated the impact of the rate design compared to the Time Warner proposal and that "the recommended rate structure and rates provide cost efficiencies and flexibility for the future that offset the negative impact on some mailers."