The USPS has long had restrictions on how much it could raise rates for “market-dominant” services (which includes the cost of a stamp, First Class Mail, and Media Mail), but it now has a higher wide latitude to raise fares above the rate of inflation. However, some members of Congress want to consider reversing that decision.
Smaller online sellers that rely on the USPS have noticed that rates are increasing more frequently (3 times a year instead of once). And in May, USPS Postmaster General Louis DeJoy told the mail industry to prepare for rate increases to a “uncomfortable rate.”
On Friday, Rep. Gerald Connolly introduced HR8781 – the “Postal Rate Accuracy Act
– to consider removing the authority that the Postal Regulatory Commission (PRC) granted to the USPS in 2020.
As we reported at the time, the PRC gave the USPS more leeway In order to “address the Postal Service’s financial health and target key drivers of net losses, the Commission is implementing two mechanisms designed to allow the Postal Service to generate additional revenue to cover costs beyond its control.”
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Note, the Postal Service is no longer facing a dire financial situation after the passing of the Postal Service Reform Act as well as the boom of the pandemic era of parcels.
However, the USPS has found another way to increase rates by introducing significant surcharges on certain types of packages, because we described in december (and which finally came into force in April).
Unfortunately for shippers, the current bill only appears to apply to market-prevailing rates — but concerned citizens and business owners can write Rep. Connolly or their own members of Congress to let them know. challenges they face and what they would like. to see the change.