This website uses cookies. Continued browsing of this site implies consent for the use of these cookies. Find out more here >>

Post & Parcel

powered by Triangle.

News

USPS supports proposed terminal dues structure

Monday, July 25th, 2016

The United States Postal Service (USPS) has said that it supports the proposed amendments to the terminal dues structure that are scheduled to be considered at the upcoming 26th Universal Postal Union (UPU) Congress.

In a filing submitted to the US Postal Regulatory Commission (PRC) on Thursday (21 July), the USPS said: “In the Commission’s [the PRC] most recent Annual Compliance Determination Report, the Commission acknowledged that the Postal Service had lost $74.8m in FY 2014 (with cost coverage of only 70%) and had lost $97.9m in FY 2015 (with cost  coverage of under 72%) from the Inbound Letter Post product for which foreign  postal operators pay terminal dues.”

The USPC continued: “The UPU proposals would create a new structure for terminal dues based on shape that would address these  imbalances and would be expected to reverse this trend of Postal Service losses.

“Indeed, the new structure breaks apart the calculation of terminal dues for letters (category “P”) and flats (category “G”) from the calculation of terminal dues for packets  (category “E”), better aligning the rate methodologies with the separate categories.

“The new terminal dues structure will more closely relate the costs of processing  and delivering to corresponding shapes of mail pieces, applying a different formula to calculate rates for packets than for letters and flats.  With the realignment, the Postal Service expects dramatic improvement in revenues from this product during the CY 2018-2021 period. In particular, the same packets category that has been a source of criticism in terms of alleged market distortion will become instead a key driver in increased revenue to the Postal Service from terminal dues and should, in turn, lead to full cost coverage.”

Source: USPS and PRC

Tags: , ,

Leave a Comment

You must be logged in to post a comment.

USPS supports proposed terminal dues structure

New Directory Members

Direct Link Worldwide Ltd

Direct Link specialises in international cross border distribution and returns of e-commerce packages worldwide. Parent company PostNord (the merged Swedish and Danish Post Offices) supports Direct Link with IT expertise, postal connections and international logistics solutions, across the Nordic countries and intercontinentally.

Sign-up

Post & Parcel Newsletters (Help)
  •  Daily newsletter


  •  Weekly newsletter


Latest Issue

About Post & Parcel

Post & Parcel is your key to the global mail and express industry. Every week Post & Parcel features the latest news, analysis of trends, insightful viewpoints, and exclusive interviews with leading industry experts.

Advertise with us

Advertise with us
We provide brands with an exciting range of advertising opportunities to reach the influential Post & Parcel audience. With campaigns suitable for every budget you can achieve your marketing objectives with Post & Parcel.