USPS Pricing Updates and Improvements

USPS Ground Advantage Reduces Prices, Simplifies Shipping Solutions and Improves Service Reliability

The United States Postal Service has filed with the Postal Regulatory Commission, (PRC) to adjust prices for some shipping services and enhancing ground shipping solutions.

The U.S. Postal Service today established proposed published pricing for its new product offering, “USPS Ground Advantage.”  Pending favorable review and comments from the Postal Regulatory Commission, USPS Ground Advantage would launch on July 9.  At launch, USPS Ground Advantage would provide a simple, reliable and more affordable way to ship packages up to 70 lbs. in two-to five business days.

USPS Ground Advantage Will Feature

  • $100 insurance included for both retail and commercial customers, USPS Ground Advantage outbound and return parcels.
  • Package forwarding and return to sender endorsements will be included for the USPS Ground Advantage product offering.
  • Free package pickup on the carrier’s route.

Published prices for USPS Ground Advantage will decrease 1.4 percent relative to current Parcel Select Ground and First-Class Package Service pricing. USPS Ground Advantage Retail prices will decrease 3.2 percent and USPS Ground Advantage Commercial published prices will decrease 0.7 percent.

Over the past year the Postal Service has focused on strengthening its shipping solutions as part of its 10-year strategic plan for service excellence, on-time delivery, and revenue generation from enhanced package delivery services. With more than 31,000 Post Offices, various pickup options, including free package pickup, and no surcharges for fuel or residential delivery, the Postal Service provides exceptional value and convenience to customers.

Shipping Service prices are primarily adjusted according to market conditions. The Postal Service governors evaluate shipping rates and fees and adjust them when needed as part of the Postal Service’s 10-year ‘Delivering For America” plan to return the organization to financial sustainability and achieve service excellence while maintaining universal six-day mail delivery and expanding seven-day package delivery.

The complete Postal Service price filings with prices for all products can be found on the PRC website under the Daily Listings section at prc.gov/dockets/daily. The Postal Service provides additional resources to assist customers regarding price changes. These tools include price lists, downloadable price files and Federal Register Notices. This information will be available on the Postal Service’s Postal Explorer website at pe.usps.com/PriceChange/Index.

Could this new USPS service and price reduction be viewed as an option for parcel shippers just in case the Teamsters decide to stage a work stoppage at UPS?  We’ll just have to wait and see.  Reach out to us if you have questions about how this new pricing and improved service offerings will affect your operations.

How to Find the Right Logistics Partner

From Chaos to Control: Selecting The Perfect Logistics Partner and Carriers

When selecting a logistics services supplier, there are several key factors to consider:

By considering these factors, you will choose a logistics services supplier that meets your needs and helps you streamline your supply chain for maximum efficiency and cost-effectiveness.

How do I find, select, and manage logistics suppliers to meet my company’s needs and goals? 

You can find logistics suppliers through various channels, including online searches, industry publications, trade shows, and referrals from other businesses. However, the best source for finding the “best of the best” logistics service providers is to rely on industry experts who have first-hand experience on which suppliers would be best for your business.  Remember this is a not “one size fits all” business decision.  All potential suppliers should be evaluated based upon the factors listed above, and we can help you with that process by also considering their physical locations and the types of goods they may specialize in servicing.

Once you have selected a logistics supplier, it is important to establish clear communication channels and expectations. You should conduct regular reviews of their performance to ensure that they are meeting, and hopefully, exceeding your needs and goals. 

You should also consider implementing a formal supplier management program, to help track performance metrics, identify areas for improvement, while building a stronger relationship with your logistics suppliers and carriers. This can help ensure that your logistics operations are efficient, reliable, and cost-effective.

How can I build long-term partnerships with my suppliers and carriers?

Building long-term partnerships with your suppliers will be mutually beneficial for both parties.   

  • Communicate regularly: Establish open lines of communication with your suppliers and regularly provide feedback on their performance. This will help identify issues early on, and work together to resolve them.
  • Build trust: Trust is a critical component of any successful partnership. Be transparent about your expectations, treat your suppliers fairly, and follow through on your commitments.
  • Foster collaboration: Encourage your suppliers to collaborate with you on finding ways to improve your business operations. This will help build a sense of partnership and shared goals.
  • Provide incentives: Offer incentives to your suppliers for meeting or exceeding performance goals. This will motivate them to go above and beyond in delivering value to your company.
  • Share information: Share all relevant information with your suppliers to help them better understand your business needs and goals, this way they can tailor their services to better meet your needs.
  • Invest in supplier development: Invest in developing the capabilities of your suppliers. This can help them become more valuable partners over time.
  • Conduct periodic reviews: Regularly evaluate your suppliers’ performance and provide feedback. This will help you identify areas for improvement and work together to address any issues.

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USPS New Requirements

US Postal Service Implements New Requirements for Using Electronic Indicator for Hazardous Materials

On April 21, 2023, the US Postal Service issued its final rule requiring Electronic Indicators when shipping Hazardous Materials (HAZMAT) and Dangerous Goods (DG). The final rule will require use of Service Type Codes (STCs) specific to HAZMAT/DG shipments effective July 9, 2023. The final rule also states that effective January 21, 2024, mailers of HAZMAT/DG must implement the new two-dimensional barcode or Intelligent Mail Matrix Barcode (IMmb) when shipping, in addition to the existing Intelligent Mail Package barcode (IMpb). On November 30, 2022, the Postal Service issued a proposed rule outlining several proposals to improve identification and processing of HAZMAT/DG goods.

In this final rule, the Postal Service revises Publication 52, Hazardous, Restricted, and Perishable Mail (Pub 52) to incorporate new requirements for mailers to use unique STCs and extra service codes (ESCs) within the tracking barcodes and electronic data submission for package shipments containing HAZMAT or DG. This rule standardizes the acceptance and handling of shipments containing HAZMAT/DG by collecting electronic data and will allow the Postal Service to create electronic manifests for the Postal Service’s air carrier suppliers. The following items are clarified in this rule:

  • When shipping HAZMAT internationally, dangerous goods (DG) terminology is used rather than HAZMAT.
  • HAZMAT and DG are not eligible to be mailed in letter or flat-sized mail pieces.
  • These new requirements are in addition to current Pub 52 regulations and do not exempt mailers from complying with existing standards.
  • When shipping to Army Post Office (APO), Fleet Post Office (FPO) or Diplomatic Post Office (DPO) destinations, mailers must follow international DG regulations. This mail is only treated as domestic for pricing purposes.
  • Packages being sent domestically containing new electronic devices, in original unopened packaging or manufacturer certified new or refurbished devices, that bear no lithium battery marking, are exempt from applying STCs and ESCs. This exemption does not apply to packages being sent internationally or to APO/FPO/DPO destinations.

These packages must meet the following:

  1. Only button cell batteries installed in equipment; or
  2. no more than 4 lithium cells; or
  3.  two lithium batteries installed in the equipment they operate, (e.g., cell phones, tablets, digital readers, or glucose monitors etc.) are not required to bear the lithium battery mark. and
  4. when there are no more than two mail pieces in a single consignment, per Pub 52, Section 349.
  • The Federal Register Notice, 87 FR 73459 published on 11/30/2022, required mailers to provide physical separation of HAZMAT/DG from non-HAZMAT/DG packages. Upon full implementation of the electronic indicators on July 9, 2023, mailers may submit a request for a release from the requirement to separate HAZMAT/DG from non-HAZMAT/DG when tendering to the Postal Service. Internal Postal Service data will be utilized to validate compliance with this rule prior to approving customer release of the separation requirement. The requests can be submitted to the Director, Product Classification, 475 L ‘Enfant Plaza, SW Rm 4446, Washington DC 20260-5015.

The final rule recommends mailers to adopt usage of the appropriate ESCs for the type of HAZMAT being shipped, the inclusion of “H” in the Service Box on shipping labels and adding the word “HAZMAT’ within the banner text with the standard Intelligent Mail package barcode (IMpb) for domestic shipments. The final rule also includes the STC and ESC tables for all HAZMAT/DG. Mailers and Customers can find the final rule on the Federal Register website link:

https://www.federalregister.gov/documents/2023/04/21/2023-08479/electronic-indicators-for-the-mailing-of-hazardous-materials

The Postal Service is revising Publication 52, Hazardous, Restricted, and Perishable Mail (Pub 52), to incorporate the new requirements. Although, effective July 9, 2023 and January 21, 2024, the Postal Service will incorporate these revisions into the next edition of Pub 52, which will be available via Postal Explorer at pe.usps.com.

For more details or if you have any questions, please reach out to ICC; we’re here to help!

UPS/Teamsters: Negotiations Have Begun!

We’re supplying you with the information you won’t find anywhere else!

In our last article, we reported that the Teamsters union had informed UPS Leadership that they were unwilling to kick-off National Negotiations that were planned for 04-17-23 until all Supplemental Negotiations were complete. At that point only 10 of the 40 Supplemental Agreements had been finalized. 

According to internal Teamsters communications, “last week began with UPS refusing to make proposals, but ended with “panicked phone calls from company negotiators after the Teamsters announced there will be no national negotiations until supplements are resolved…” The internal communications went on to say that “The hardline approach pushed two supplements- The Michigan Rider, and the Local 243 and Metro Detroit Agreement- to reach full tentative agreements.” This still leaves 28 of the 40 Supplements open.
So, we were interested to see if the Teamsters would show up in Washington, DC this past Monday.  The company had released a statement on their website, indicating that they would be there as planned, and would be prepared to negotiate the National and Supplemental agreements at that point. 

On the positive side of things, the Teamsters National Negotiating Committee, including rank and file members and representatives of all supplemental negotiating committees, were present in Washington, DC on the 17th. However, the tone that they set might have had some UPS Leaders wishing that they had not. 

According to the Teamsters, UPS provided it’s opening statement through a PowerPoint presentation, while they presented a video testimonial from members nationwide “sharing their trials and tribulations working at UPS”. This was an interesting approach as it personalized the impact of the main negotiables that the Teamsters are demanding. 

Below is a list of the demands that the Teamsters are making, along with the message that the video attempted to deliver. 

Wages– Teamster members are looking for improved wages, especially for Part Timers. Comments in the video from Teamster General President, Sean O’Brien, and General Secretary-Treasurer, Fred Zuckerman revolved around the increased profitability and stock price that the company has seen since the last contract negotiations in 2018 (both of which have doubled). Zuckerman commented that “Teamsters at UPS can’t just survive, they need to thrive, just like the company.”

22.4 Drivers- This is the two tiered Driver category that currently exists at UPS. 22.4 Drivers are paid much less, and don’t receive the same benefits as other UPS Drivers. Several 22.4 Drivers in the video expressed concern that they are being unfairly treated, and called for the elimination of this two tiered system. 

Excessive Overtime- The video featured multiple Drivers complaining how they have been forced to work 6 days per week, and how this impacts their health and family life. One driver described how he has been forced to work 6 days per week since November of 2019. Some described it as “The Peak Season that never stopped”. The fact that UPS is still charging for Peak Surcharges suggests that this could be an accurate description. 

Inward Facing Camera’s/ Harassment- Several UPS Drivers explained their opposition to the use of inward facing camera’s in their vehicles. They suggested that UPS already has significant technology in place that allows them to monitor their performance and activity including; GPS, Telematics, and their DIAD board. Some felt that using these cameras could be used improperly to harass drivers, and would be an invasion of privacy.

Workforce Investment- UPS employees stressed the need to create more Full Time jobs for Part Time workers. They also indicated that the company needs to contribute more to Pensions and to ensure Pension stability.  Other employees stressed the need for the company to invest in ways to protect workers from extreme heat. One driver described how he had experienced Heat Stroke, which required a hospital visit. 

PVD’s- Personal Vehicle Drivers– UPS employees described how the use of these drivers during peak season, takes work away from regular/ Teamster drivers. Some described situations in which there was not enough work for Regular drivers and they were sent home, while PVD’s were still working. They also suggested that PVD’s do sloppy work, and make the company and their drivers look bad. 

Subcontracting- UPS Trailer drivers complained that the company is using more Subcontractors than they need to, and that work is being taken away from Teamster Drivers. They are calling for a reduction/ elimination of subcontractors for UPS Trailer moves.

Martin Luther King Day/ Juneteenth– Several UPS employees stressed that UPS should fully recognize these holidays by adding these as paid holidays for workers. Comments made from employees suggested that UPS is big on promoting diversity, but they need to put their money where their mouth is.

Obviously, all of these items would come at a cost to UPS, some of them being significant. UPS Leadership has indicated that the two sides are not far apart, and that an agreement should be easy to reach in advance of the July 31st deadline.  So, it will be interesting to see how much the company is willing or able to give up. 

At the opening of these negotiations, Teamster leadership suggested that there is little wiggle room from their perspective. President, Sean O’Brien stated “We don’t work for this company. We work for our members. It’s not Wall Street that concerns us, it’s Main Street.  We are not going to negotiate a contract that is cost neutral or with concessions. We are going to push this company and its management harder than they’ve ever worked before, and for the first time you’re going to face a productivity standard. We have 12 weeks until this current contract expires. Let’s get to work.” 

So, obviously there is a great deal of work to do in a short period of time. Therefore, it is imperative to monitor this situation for ongoing/ meaningful developments. As previously committed, ICC Logistics will continue to monitor this situation, and provide updates to ensure that our clients and followers are duly informed.

US Postal Rates Going Up, Again!

U.S. Postal Service Files Notice with PRC for New Mailing Services Pricing

In announcing this latest postage increase, the US Postal Service stated the increases are a result of the following conditions:

  • Actions taken to address continued elevated inflation and prior years defective pricing model
  • No price increase for USPS Connect Local, which gives businesses of all sizes the ability to reach local customers at affordable rates
  • Reduced pricing for some Retail Priority Mail Flat-Rate products below the temporary price currently in place

On April 10, 2023, the United States Postal Service filed notice with the Postal Regulatory Commission (PRC) of mailing services price changes to take effect July 9, 2023. The new rates include a three-cent increase in the price of a First-Class Mail Forever stamp from 63 cents to 66 cents.

If favorably reviewed by the Commission, (which we are certain will be the case), the proposed increases will raise First-Class Mail prices approximately 5.4 percent to offset the rise in inflation. The price changes have been approved by the Governors of the U.S. Postal Service.

The price for 1-ounce metered mail will increase to 63 cents, and the price to send a domestic postcard will increase to 51 cents. A 1-ounce letter mailed to another country would increase to $1.50. There will be no change to the single-piece letter and flat additional-ounce price, which remains at 24 cents. The Postal Service is also seeking price adjustments for Special Services products including Certified Mail, Post Office Box rental fees, money order fees and the cost to purchase insurance when mailing an item.

The proposed Mailing Services price changes include:

Current PricesPlanned Prices
Letters (1 oz.).63 cents.66 cents
Letters (metered 1 oz.).60 cents.63 cents
Domestic Postcards.48 cents.51 cents
International Postcards$1.45$1.50
International Letter (1 oz.)$1.45$1.50

As operating expenses fueled by inflation continue to rise and the effects of a previously defective pricing model are still being felt, USPS stated that these price adjustments are needed to provide the Postal Service with much needed revenue to achieve the financial stability sought by its “Delivering for America 10-year plan.” According to USPS, the prices of the U.S. Postal Service remain among the most affordable in the world.

The PRC will review the changes before they are scheduled to take effect. The complete Postal Service price filing, with prices for all products, can be found on the PRC website under the Daily Listings section at prc.gov/dockets/daily. The Mailing Services filing is Docket No. R2023-2. The price tables are also available on the Postal Service’s Postal Explorer website at pe.usps.com/PriceChange/Index.

Turning Shipping Invoices into Revenue

Many companies employ outsourced firms to pre-audit and pay their freight invoices.  This is not only helpful to catch all invoicing errors, but it also is a much less costly way to process freight invoices than typical in-house operations. Utilizing a pre-audit firm does not, and should not preclude company’s from also using a Post Audit firm to audit the results.

Post-auditing of freight invoices refers to the process of reviewing and verifying the accuracy of freight invoices after they have been paid. The purpose of post-audit operations is to identify any errors or overcharges in the billing process and recover any funds that were incorrectly paid during the initial audit process.  And yes, millions of dollars are recovered each year during the post audit process.

The post-audit process typically involves the following steps:

  1. Collecting Data from the carrier, such as invoice files, bills of lading, and delivery receipts.
  2. Collecting Freight Payment Data from the initial pre-audit firm, or in-house payables departments.
  3. Checking for Errors such as incorrect, or improper charges, incorrect weights, and incorrect classifications.
  4. Verifying Charges against the contracted rates to ensure that the charges are consistent with the terms of the contract.
  5. Resolving Discrepancies that are identified during the audit process directly with the freight carriers.  
  6. Recovery of Funds for any overcharges that are identified during the post-audit process. This may involve issuing a credit memo or receiving a refund.

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