Monthly Archives: March 2016

Lower USPS Postage Rates To Start April 10

usps-truck-504

Yes, US postage rates will be reduced on April 10, 2016, unless Congress or the courts intervene.

That’s good news, at least in the short term, for postal customers who will see an average 4.3 percent price decrease. A First Class Letter 1-ounce stamp will become $.47 (currently $.49).

But in the long term, the news is not so good.

The USPS is still trying to work through a Congressional requirement to prefund retiree pensions at over $5 billion per year, over a 10-year period.

An additional 4.3 percent decrease will impact USPS revenues by $2 billion annually.

The options for the USPS are limited.   Congress won’t allow the USPS to cut back Saturday delivery, and hamstrings USPS management on closing poor-performing Post Offices.

Even the pending postage decrease is out of management’s control.

To make up for the shortfall, USPS service will likely have to degrade service quality.   This most likely means one thing: add days to delivery time.  And that’s good news for nobody.

On April 10, 2016, postage rates will be:

First-Class Letter (1 oz): $.47 (currently $.49)
Each additional ounce: $.21 (currently $.22)
Postcard rate: $.34 (currently $.35)

We’ll keep you posted.

 

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