Postal rates set to rise

BY WILLIAM ARMBRUSTER
JoC ONLINE

Just four months after stamp prices increased by a penny, the U.S. Postal Service’s board of governors overrode the independent Postal Rate Commission and imposed a series of increases affecting priority mail, express mail, periodicals and other items, effective July 1.

The rate for a one ounce first-class letter will remain 34 cents, but the charge for an additional ounce will now rise to 23 cents.

The rate for a postcard will increase by one cent to 21-cents, the first increase in the postcard rate since 1995.

Rates for priority mail will rise an average of 0.9%. There will be no change for priority mail weighing less than two pounds, but there will be progressively higher increases for heavier shipments. The rate for express weighing a half pound or less will go from $12.25 to $12.45, with heftier increases for heavier packages.

“We take this action mindful of our statutory obligation to assure the financial integrity of the nation’s universal postal system. As the officials responsible for matching revenue with costs, we found that the additional revenue is essential,” said Robert F. Rider, chairman of the agency’s board of governors.

The Postal Service is facing a loss this year that could exceed $2 billion, due to the weakening economy and soaring fuel costs.

The Postal Service noted that it has taken a number of steps to cut costs this year, including cutting capital spending by $1 billion and freezing hiring for administrative positions.

In addition, the Postal Service plans cost reductions totaling $2.5 billion through fiscal year 2003.