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No Increase to USPS Postage Rates in January 2015

December 16th, 2014

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USPS Will Not Increase Postage Rates in January 2015
Great news mailers and shippers! The U.S. Postal Service (USPS) recently announced there will be no changes to mailing and shipping rates in January 2015. This means the cost to send a one ounce First Class Letter will remain $0.49 ($0.48 if you print postage online and receive the metered mail rate) in January 2015. And there will be no increase in prices for shipping services which includes Priority Mail, Priority Mail Express, First Class Package Service, Media Mail and Parcel Select.

For e-commerce shippers, no annual rate increase coupled with the recent shipping rate reductions that occurred in September 2014 make Priority Mail the perfect shipping product to lower costs in 2015.

UPS and FedEx to Increase Rates by Average of 4.9% in 2015
In October, UPS announced they were increasing rates by 4.9% on average (effective December 29, 2014). And FedEx announced they were increase rates by an average of 4.9% on standard list rates effective January 5, 2015. Both UPS Ground and FedEx Ground/Home Delivery will also be incorporating DIM pricing in 2015, which is expected to increase rates.

USPS Rates Could Be Adjusted Later in 2015
While USPS postage rates are not increasing in January 2015, there could still be an increase – or even a decrease – sometime later in 2015. In January 2014, the USPS applied for an “Exigent Price Increase” due to significant USPS losses that occurred during The Great Recession. This Exigent Price Increase allowed the USPS to increase rates higher than rate of inflation in order to recover the approximate $2.8 billion lost. Once the exigent/higher rates recovers the $2.8 billion total, expected to be in early fall of 2015, the USPS could then make additional rate adjustments.

Stay up to date on the USPS postage rate increase here.

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