January 2017 Postal Rates – What to Expect

BEB UP ON THE HILL LOGOThe US Postal Service wants new postal rates to take effect on January 22, 2017.  In order to meet that date, the market dominant pricing filing must be submitted no later than October 22, 2016 (at least 90-days prior to the increase).

The available price cap percentage for First-Class Mail is .382%.  The available price cap percentage for Standard Mail is .507%.  The postal service is allowed to apply previously unused rate adjustments from previous years, (within a 5-year period).  This practice is called Banked Authority.  Adding the available bank authority to the January 2017 figures adds an additional .272% to First-Class Mail and .263% to Standard Mail.

Proposed dates surrounding January 22nd rate increases are as follows:

September/October- Submit final filing with Postal Rate Commission (PRC)

November/December-Publish final prices and standards

January 22, 2017-Rate increase takes effect

A few other highlights to look for include:

  • Change Standard Mail to Marketing Mail
  • FSS (Flat Sequencing System) is going away. It will require OEL (Optional Endorsement Lines) on all flats running on FSS Machines.
  • Flats rates applicable up 4oz for automated mail
  • Standard Letter rates applicable for up to 4oz fir non-automated mail
  • Combine AADC and 3-Digit Automation letters for Standard Mail Presort

We anticipate an overall increase of 1% to take effect in January.  We will publish proposed rates as soon as they are available.

Leave a Reply

Your email address will not be published. Required fields are marked *