USPS Given OK for Standard Mail Flats Increase
WASHINGTON, DC—The Postal Regulatory Commission (PRC) has approved new Standard Mail flats rates for the U.S. Postal Service (USPS), Post & Parcel reported. Flats will increase for the catalog mailers by an average of 2.617 percent as of Jan. 27, 2013.
Other increases include 2.61 percent for Standard Mail letters, 3.081 percent for Standard Mail parcels, 2.059 percent for Standard Mail high-density letters and 2.092 percent for Standard Mail high-density flats and parcels.
In November, the PRC had rejected the USPS' original proposed increase, a 2.57 percent rise in Standard Mail flats, saying the USPS didn't demonstrate it was making progress towards completely covering the costs of the loss-making service, Post & Parcel reported. But the USPS demanded an above-average increase for the rate category.
In 2010, the PRC had told the USPS it needed to work toward recouping the flats service losses, since USPS must (by law) ensure full cost coverage for its monopoly portfolio products. The Postal Service argued it was making progress toward full cost coverage by working to cut its operating costs, Post & Parcel said.