USPS Faces Preemptive Backlash to Expected Soaring Price Hikes

The U.S. Postal Service is expected in the coming days to announce its first price increase after receiving new authority to raise rates above inflation, causing some of its biggest customers to sound dire alarms.

USPS’ oversight body, the Postal Regulatory Commission, late last year gave the mailing agency the ability to issue significantly larger rate increases. The price hikes had previously been tied to inflation, leaving large-scale mail users fearful of the impact the changes will have on their businesses. While postal management has expressed confidence that “judicious” use of its new authority will lead to overall revenue growth for the agency that has for years failed to cover its costs, the customers are warning USPS that it will unintentionally accelerate the trend of declining mail volumes.


CONTINUE READING AT » Government Executive
Subscribe
Notify of
1 Comment
Inline Feedbacks
View all comments

Anybody with two brain cells knows that the US Post office regular rate paying customers as well as the taxpayers via bailouts are subsidizing Amazon delivery in the rural setting. That’s all we do in a rural post office is deliver Amazon Amazon Amazon Amazon . Amazonn from what I understand the post office gets a buck and a quarter per package under Amazon’s corrupt contract, even if it weighs 70 lb. You or I go ship a 70 lb parcel and it’s going to cost us 70 bucks. The post office needs to quit subsidizing Amazon and enriching Jeff… Read more »