US mailers promise legal battle against USPS rate increase

[POSTMAN]

US mailers have vowed to fight tooth and nail against the four-times-inflation postal rate increases being proposed by the Postal Service.

USPS announced plans to charge businesses 5.9% more to deliver their mail from 26 January, 2014, a 4.3% increase above the rate of inflation.

The Postal Service, which is usually limited by an annual price cap to making rate increases averaging the rate of inflation, can only ask for above-inflation price increases if it can show there are “exceptional or extraordinary” circumstances threatening its business.

This week USPS said it believed it had the legal right to bust the cap because of the extraordinary financial situation in which it currently finds itself.

USPS is currently right at its legal credit limit of $15bn in debt, with expectations that the end of this month will see the fiscal year bringing in a further $6bn loss.


The federal agency hopes to raise $2bn a year in extra revenue through its “exigent” rate rise request, which is currently subject to a 90-day review by regulators.

US mailers said yesterday they will challenge the rate rise request through the Postal Regulatory Commission, the Presidentially-appointed five-member panel that regulates the US postal industry.


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