USPS mail, parcel and express prices increase from today
The US Postal Service has introduced new postal rates from today for all its market-dominant services, with a 44-cent First Class Mail stamp rising to 45 cents. Overall, the average rate increase for all market-dominant services is 2.133%, linked to the price of inflation. The changes were approved by regulators in November.
The increase to the first-ounce single-piece stamp price is the first since May 2009, and comes alongside a three-cent rise for the rate for postcards, to 32 cents, and a five-to-seven cent rise for international letters.
On average, First Class Mail and Periodical rates have increased by on average 2.133%, with Standard Class rising by 2.04% and market-dominant Package Services increase rates by 2.115%.
USPS was increasing its prices under its annual inflation-linked price cap for market dominant services, but is still engaged in a process of seeking regulatory approval for a higher rate increase, to help restore the impacts of the 2008-9 recession.
Generally price increases for single-piece mail are higher than for presorted mail. In First Class Mail, single-piece letters and card rates are increasing by 2.468%, while presort letters and card rates are increasing 1.58%.
Among the price changes for specific categories are some significantly higher price increases than the 2.133% average, in order to cover loss-making services since under US postal law, services must recoup their costs.
Within Standard Mail, while letters increased only 1.867%, parcels increased 2.86% and high density flats and parcels increased 2.87%.
Some of the bigger price increases from today include a 10.8% increase for First Class Mail Parcels, which reflects the transfer of much of the category into the competitive service portfolio as Commercial Plus and Commercial Base parcels, and international First Class Mail rates, which are increasing by 4.68%.
However, while there are questions about the cost coverage of Standard Mail Flats, including an order from regulators for USPS to cover its costs, USPS is increasing rates by only 2.2% out of concern for the “financial health and long-term viability” of the catalogue industry, one of the service’s major user groups.
Among Special Services rate increases, address management services rates rise 2.32%, money order fees increase 4.02%, PO Box fees rise 2.38%.
Other changes today include setting the USPS Confirm price zero, since it is being replaced by the IMb bar code system.
USPS is also implementing its “second ounce for free” incentive by expanding its lightest weight step for presorted First Class Mail from one to two ounces. The move is an attempt to encourage mailers to stick with First Class Mail as a communication channel, allowing them to include additional pages with their mailings for no extra charge.
“Providing the second ounce for free for presorted letters will enhance the value of First Class Mail as a communication vehicle and aid in stemming the rate of diversion to other media,” the USPS explained in its pricing submission.
Competitive services
For the competitive side of USPS services, including premium Priority Mail and Express Mail services and competitive parcel services, prices are increasing 4.6% from today.
Priority Mail prices are increasing on average 3.1%, with Express Mail increasing on average 3.4%. The First Class Package Service, formerly the market-dominant product First Class Mail commercial parcels, will see prices increased 3.7%, but will gain free visibility under the Intelligent Mail Barcode (IMb) system.
For commercial mailers, Commercial Base prices will offer on average 6.8% discount from retail Priority Mail rates, USPS said.
USPS is also officially starting new product lines including the $39.95 Express Mail Flat Rate Box and a new larger Priority Mail Regional Rate box (Box C) from today, and a new service called Package Intercept, in which for a $10.95 fee, customers can request Priority Mail items are intercepted and sent to an alternative address prior to delivery.
