Tag: USPS

Magazines in a mail-strom of rate hikes

For magazine publishers, it’s an instance where increasing frequency is not a welcome development.

For the third time in 2001, the industry is grappling with the issue of postal rate increases, and though the latest proposed increase wouldn’t take effect till 2002 at the earliest, it could cost the magazine industry another $200 million at a time when it can ill afford the additional hit.

Following a 9.9% increase for magazines in January and a 2.6% increase in July, the latest proposal, or rate case, now under review at the Postal Rate Commission will likely up the cost of mailing periodicals by another 10% (AA, Sept. 17).

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Postal Service Shifts Much Mail Off Passenger Jets

The U.S. Postal Service has moved a large portion of items it usually ships in airplane “bellies” to trucking companies and commercial cargo airlines, as it faces new restrictions, the Wall Street Journal reported in its online edition on Tuesday.

The move comes after the introduction of new Federal Aviation Administration rules requiring most cargo carried on passenger planes to be screened for explosives, the report said.

The new rules do not just affect the airlines, they also affect the companies that ship items on passenger airlines, the report said.

According to the report, the FAA has not disclosed the specific new regulations, and postal officials will not publicly comment on the rules.

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Compaq Computer: USPS Contract worth $1 billion

Compaq Computer Corp. has won a five-year contract renewal with the U.S. Postal Service that could be worth about $1 billion. ‘A contract of this magnitude validates Compaq’s strategy of focusing on integrated solutions that create value for customers, rather than just providing hardware,’ said Peter Blackmore, executive vice president of worldwide sales and services for Compaq, Thursday.

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