Sponsored Link

USPS Allegedly ‘Plotting’ Double-Digit Rate Hike in July

USPS logo
USPS Allegedly 'Plotting' Double-Digit Rate Hike

According to an advocacy group, the USPS Board is “plotting” an 11.5% rate hike in July. Keep US Posted issued a press release on Friday containing the allegation but providing no details on how it became aware of details about the upcoming July rate change.

Keep Us Posted calls itself a “nonprofit advocacy group of consumers, nonprofits, newspapers, greeting card publishers, magazines, catalogs, forestry and recycling interests, and small businesses.” Its announcement was in response to reports that President Trump had plans to seize control of the US Postal Service and place it under the Commerce Department.

Keep US Posted Executive Director and former Congressman Kevin Yoder (R-Kan.) did not opine on the president’s plans, but called for the president to freeze postal rates, something he currently doesn’t have the authority to do:

“The U.S. Postal Service does indeed need meaningful change, and we stand ready to help with efforts to protect mail delivery. Americans are frustrated with the U.S. Postal Service because it’s essential to our daily lives and the only courier able to deliver for all Americans, yet it has become prohibitively expensive and unreliable for businesses and consumers alike. Our message to President Trump is to freeze the rates. Americans can’t afford the 11.5% July rate hike the board has been plotting. We also need to modernize the structure of USPS so that it is more efficient and accountable. Now is the time to create a more reliable, affordable Postal Service for all Americans.”

The USPS had previously raised rates only once a year, but under Postmaster General DeJoy, now raises rates 3 times a year (January, July, and a holiday-season rate change that generally spans from early October through mid-January when the next rate hike kicks in).

On Tuesday, DeJoy announced his plans to step down, followed by the report on Thursday that Trump intended to fire the Postal Board of Governors and absorb the now independent USPS into the executive branch.

Some online sellers may have been hoping for a Trump rescue of the Postal Service, but the chaos hitting many Federal agencies may give them pause. Stability and reliability are key since sellers are judged by buyers and marketplaces for on-time delivery of their orders.

Yet with DeJoy planning to step down and now rumors of a steep rate increase in 5 months, sellers may still hold out hope that the president can bring stability to an agency on which every constituent relies.

President Trump confirmed he is considering a USPS takeover, but he is focused on the fact it loses money. PBS uploaded the following video to YouTube that shows the president responding to a question about the rumors of the USPS takeover (at minute 2:09):

Written by 

Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). She is a member of the Online News Association (Sep 2005 - present) and Investigative Reporters and Editors (Mar 2006 - present). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com. See disclosure at EcommerceBytes.com/disclosure/.

6 thoughts on “USPS Allegedly ‘Plotting’ Double-Digit Rate Hike in July”

  1. Whelp that will be a small business killer, I had to eat the 4% increase in January, I can’t eat no more. Was hoping for another 2 yrs so I could take early retirement, guess it’ll be disability.

  2. Coincidence that rates increase as Trump takes over?

    I remember Trump say, (during his last term), that if USPS isn’t profitable, that they should raise their prices.

  3. Hmmm. President Trump’s plans to take over and privatize (sell?) USPS can only mean one thing: much higher rates and many fewer staff. Because anyone buying USPS is gonna want a quick profit.
    Just look at prices charged by privatized post offices in Europe. Hope rural America doesn’t mind higher prices and less service. Cause that’s what they’ll get.

  4. “sellers may still hold out hope that the president can bring stability ”

    Anyone that believe this statement is deluded (and a few other things I won’t mention here).

    This is coming from a man who bankrupted 3 casinos, each of which basically includes a license to print money.

    I guess Trump’s policy will be, either drastically raise rates, or I am going to take over. (meaning I’m going to get the USPS ready to be sold to the highest bidder).

    1. For the last few months, more of my packages have been lost than delivered. Tons of them. All misrouted. Some finally arrive but lot’s don’t. What is up with USPS? Ebay not protecting sellers from feedback for the errors the post office is making either.

  5. USPS losing more packages than delivered. For the last few months, more of my packages have been lost than delivered. Tons of them. All misrouted. Some finally arrive but lot’s don’t. What is up with USPS? Ebay not protecting sellers from feedback for the errors the post office is making either.

Comments are closed.