News Alert - Statement on Proceeding with Exigent Pricing Relief

As a result of the Postal Regulatory Commission’s (PRC) Oct. 31 order denying a motion by the Postal Service to "stay" its request for exigent price relief until Dec. 15, 2011, the Postal Service informed the Commission that it will continue to proceed with the case. If legislation passes that promotes the Postal Service's financial stability, the Postal Service will review its position any may choose to withdraw the case if warranted.

The Postal Act of 2006 capped price increases for Mailing Services products and services at the rate of inflation as measured by the Consumer Price Index (CPI). However, the law does allow for increases beyond the CPI cap due to exceptional or extraordinary circumstances. That was the case in July 2010 when the Postal Service filed for an increase above CPI, citing the exceptional circumstances of significant mail volume losses. The Postal Service financial crisis has worsened since then.

While legislation continues to be introduced to address critical Postal Service issues, the uncertainty over Congressional action leaves the Postal Service little choice but to proceed with the case for now.

The Postal Service announced new Mailing Services prices last month and will announce new Shipping Services prices later this month. The new pricing will be effective Jan. 22, 2012.

Source: PostCom

Link: The Postal Service will be seeking an additional $2.3 billion in revenue.

Postal Delivery Issues In Canada

Canada Post is experiencing service issues in certain areas of the country. These challenges are being caused primarily by transition issues related to a massive investment in new technology and processes throughout Canada Post’s network. This investment is required as much of the equipment used in their mail processing facilities is over 20 years old, and the processes used to deliver the mail were first introduced in the early 1970s. Mail flows are being disrupted by the technology change over. Canada Post has undertaken more change in the past four years than in the previous 40 years. The company is now working through the complexities of changing its infrastructure while attempting to maintain normal operations.

Source: International Delivery Solutions

DMA Postal Hill Day

DMA is hosting a Postal Hill Day where catalog members are invited join the DMA Government Affairs team on Capitol Hill, meeting with key Congressional staff about current proposals to reform the U.S. Postal Service. The interests of catalogers are currently under attack in Congress. Join DMA in Washington, DC, on November 17, as they ask Congress to protect catalog mail. Postal Hill Day participants will join DMA’s Government Affairs Team in meetings with senior Congressional staff leading the way on postal reform in the House of Representatives and the Senate.

Source: Direct Marketing Association