ABM Says Postal Settlement Means Rates will Increase on June 30
Press release from the issuing company
When the financial impact of the September 11 attack and anthrax were added to the economic downturn, it became obvious that the increased postal rates contained in the Postal Service's rate filing in September would turn out to be inadequate. Mailer's were then confronted with a Hobson's choice. If we did not agree to a rate settlement that would allow for an increase on June 30, rather than in September as would be the case absent a settlement, the Postal Service would revise its rate request by significantly increasing the requested rates.
Nearly all of the parties to the Postal Rate Commission proceeding have selected the earlier effective date/smaller increase option as the lesser of two evils, but not before the other publishing interests in the case and the Postal Service agreed to a modification proposed by American Business Media that would retain the flat editorial pound rate. By January 18, parties that oppose the settlement must so advise the Postal Rate Commission, which will then determine by the end of the month whether the opposition (if any) is sufficiently limited to permit a timely Recommended Decision on the settlement proposal. We expect that it will, and that a rate increase averaging approximately 11.5 percent for American Business Media member publications will take effect on June 30. Certainly, American Business Media members should plan for that result, although they should also recognize that the rates will contain greater incentives for palletizing and, especially, for drop-shipping pallets and that many may be able to cut the increase by taking advantage of these incentives.
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