Monday, June 3, 2013

Without Five-Day Delivery, Will Rates Go Up

Without Five-Day Delivery, Will Rates Increase for Mailers?:
When the U.S. Postal Service (USPS) announced in February a plan to eliminate mail delivery on Saturday, mailers approved. Many told Direct Marketing News that by and large such a schedule would not significantly affect the logistics of their business; more important, mailers hoped that the revamped schedule, originally set to go into affect August 5 and which was estimated to save the USPS $2 billion annually, would reduce the chances of an exigent rate increase.
But on April 9, the USPS Board of Governors (BOG) discussed a restriction in a Continuing Resolution (CR) passed in March by Congress. The CR effectively stated that funding of the USPS is dependent on mail service continuing at 1984 levels. Consequently, the new national delivery schedule is, at least temporarily, off the table.