PRC: Cut Bulk Parcel Return Rates By 13 Cents
The Postal Rate Commission Friday recommended a 13 cent cut in the Bulk Parcel Return Service (BPRS) rate the U.S. Postal Service is charging continuity mailers to return undeliverable or unwanted machinable Standard A Mail parcels weighing less than one pound.
The PRC, in a 37 page decision agreeing with the Continuity Shippers Association that the fee is too high, recommended the postal service’s Board of Governors cut it down to $1.62 from $1.75.
The CSA, representing hosiery, book, record, audio and videotape continuity mailers, with the support of the Direct Marketing Association and the Association for Postal Commerce challenged last year’s decision by the postal service to replace a postage-plus 30-cent charge to return undeliverable or unwanted parcels with a flat $1.75 fee.
The PRC agreed saying that that the USPS used out-dated financial information to determine the fee and that it was recommending the rate cut based on the financial data the USPS is using in connection with its current rate increase request.
Last year the USPS asked the PRC to endorse a proposed rate increase for next January that averages 6.4 percent. Many industry organizations, citing the postal service’s four consecutive surpluses totaling more than $5 billion since 1995, oppose the proposed increase. The PRC expects to issue its recommended decision on the proposed rate hike early next fall.
