Exigent surcharge removal notice coming soon

February 17, 2016

PRC

We expect that the Postal Service will announce the date of the exigent surcharge removal this week or next.

Through Valentine’s Day, USPS exigent surcharge revenue was $4.347 billion. The cap is $4.634 billion, leaving $287 million left to collect. In the first half of its second quarter, the Postal Service collected $257 million in surcharge revenue, a rate of $5.7 million a day. If that daily rate were to continue, the exigent removal would happen 50 days after Valentine’s Day, or on April 4. And the USPS would give the required 45-days’ notice by the end of this week.

Many in the mailing business hope that the Postal Service stays with Sunday rate changes, which might mean a notice by next Thursday, February 25 for the change on Sunday, April 10.

The USPS published its spring rollback pricing tables on February 5, helping to ensure a smooth transition.