Thursday, April 18, 2013

With 5-Day Delivery Shelved, Are Rate Hikes Ahead?

Is it good or bad news for direct mailers that the U.S. Postal Service Board of Governors has dropped its plan for five-day delivery, which had been set to start August 5? In the short run, the retention of Saturday delivery relieves bulk mailers of re-scheduling issues. In the long run, it may portend another "exigent" rate increase by the cash-strapped USPS. And the American Catalog Mailers Association, for one, is much more concerned about this potential cost impact than elimination of Saturday mail. In a recent article by Al Urbanski of Direct Marketing News, ACMA President Hamilton Davison is quoted: "Our members say they'll take one-day delivery if it translates into lower cost. That's how much of an overarching concern cost is." A rate increase won't come quickly at least; it will be hashed out in discussions between the Postal Regulatory Commission, Congress, postal unions and lobbyists like ACMA and the Direct Marketing Association. However, watch for a speed up in postal facility closures and consolidations, which could impact delivery efficiency. For more discussion, see the DM News article at

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