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HEARD AT MAILCOM: PMG Rumors; Mail Delivery Anomalies; Mailer Brexit Woes; PRC Re-Do; Postage Rate Hikes 2020

Industry leaders gathered at MAILCOM ’19 in Atlantic City and some of the talk around the cocktail tables includes …

… How long will Postmaster General Megan Brennan continue to lead the Postal Service? The first woman to hold the position, Brennan was sworn in four years ago and there is speculation her contract runs out within the year. “Will she remain as PMG?” is the question of the moment, followed by the invariable “Will her replacement be from within or without the USPS?” The last PMG from outside the organization was Marvin Runyon who left 20 years ago …

… Mailers recounted stories of incredible Standard Mail delivery service and very poor single piece First-Class Mail service. One mailer said First-Class Mail delivery within her state was running 4-5 days for delivery, while Standard Mail was receiving 2-3 day delivery. This phenomenon was reported both in an eastern state and western state …

… Bob Gallaher, the venerable Executive Director of the National Association of Presort Mailers (NAPM) will be retiring within the year …

… Brexit is a disaster for mailers, especially publishers. A “No Deal” Brexit will mean hard borders the next day. Any company doing international mailing or fulfillment out of Great Britain will have the burden of custom forms and fees immediately imposed on their mailings …

… the Postal Regulatory Commission is expected to announce a revised proposed rate making system following feedback on its plan that was unveiled in 2018. A final rule was expected by now. The PRC now has a full body of commissioners (five) which means there will be no ties in the final voting, according to the NAPM presentation at MAILCOM.

… In the NAPM presentation there was speculation on 2020 rate hikes. Presorted First Class Mail could see a higher increase than Single Piece and the drop ship discount could see a 10% decrease. There is no expected change to existing incentives. Unknown at this point is whether a new rate setting system will be in place. If so, it could mean substantial increases for mailers.

… More to come … check back …

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