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USPS Rates 2022 Peak Season

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U.S. Postal Service Announces Proposed Temporary Rate Adjustments for 2022 Peak Holiday Season

The United States Postal Service recently filed notice with the Postal Regulatory Commission (PRC) regarding a temporary price adjustment for key package products for the 2022 peak holiday shipping season. This temporary rate adjustment is similar to ones in past years that help cover extra handling costs to ensure a successful peak season.

The planned peak-season pricing, which was approved by the Governors of the Postal Service on Aug. 9, would affect prices on the following commercial and retail domestic competitive parcels: Priority Mail Express (PME), Priority Mail (PM), First-Class Package Service (FCPS), Parcel Select and USPS Retail Ground. International products would be unaffected. Pending favorable review by the PRC, the temporary rates would go into effect at 12 a.m. Central on Oct. 2 and remain in place until 12 a.m. Central Jan. 22, 2023.

This seasonal adjustment will bring prices for the Postal Service’s commercial and retail customers in line with competitive practices. No structural changes are planned as part of this limited pricing initiative.

Delivering for America, the Postal Service’s 10-year plan for achieving financial sustainability and service excellence, calls for appropriate pricing initiatives. The US Postal Service continues to report that it “has some of the lowest postage rates in the industrialized world and continues to offer great values in shipping. These temporary rates will keep USPS competitive while providing the agency with the revenue to cover extra costs in anticipation of peak-season volume.”

The proposed price changes include:

Priority Mail and Priority Mail Express:

                Commercial:

o             $0.75 increase for PM and PME Flat Rate Boxes and Envelopes.

o             $0.25 increase for Zones 1-4, 0-10 lbs.

o             $0.80 increase for Zones 5-9, 0-10 lbs.

o             $0.75 increase for Zones 1-4, 11-25 lbs.

o             $2.80 increase for Zones 5-9, 11-25 lbs.

o             $3.00 increase for Zones 1-4, 26-70 lbs.

o             $6.50 increase for Zones 5-9, 26-70 lbs.

                Retail:

o             $0.95 increase for PM and PME Flat Rate Boxes and Envelopes.

o             $0.30 increase for Zones 1-4, 0-10 lbs.

o             $1.00 increase for Zones 5-9, 0-10 lbs.

o             $0.95 increase for Zones 1-4, 11-25 lbs.

o             $3.20 increase for Zones 5-9, 11-25 lbs.

o             $3.25 increase for Zones 1-4, 26-70 lbs.

o             $6.45 increase for Zones 5-9, 26-70 lbs.

First-Class Package Service, Parcel Select Ground, and USPS Retail Ground:

Commercial:

o             $0.25 increase for Zones 1-4, 0-10 lbs.

o             $0.40 increase for Zones 5-9, 0-10 lbs.

o             $0.75 increase for Zones 1-4, 11-25 lbs.

o             $1.60 increase for Zones 5-9, 11-25 lbs.

o             $3.00 increase for Zones 1-4, 26-70 lbs.

o             $5.50 increase for Zones 5-9, 26-70 lbs.

                Retail:

o             $0.30 increase for Zones 1-4, 0-10 lbs.

o             $0.60 increase for Zones 5-9, 0-10 lbs.

o             $0.95 increase for Zones 1-4, 11-25 lbs.

o             $2.70 increase for Zones 5-9, 11-25 lbs.

o             $3.25 increase for Zones 1-4, 26-70 lbs.

o             $5.85 increase for Zones 5-9, 26-70 lbs.

ProductCurrent
Planned Increase
Parcel Select Destination
Delivery Unit (DDU)Starts at $3.50.25 cents
Parcel Select DSCFStarts at $3.77.75 cents
Parcel Select DNDCStarts at $4.84.75 cents
USPS Connect LocalStarts at $3.95No Change
Parcel Select Lightweight (DDU)Starts at $2.32No Change
Parcel Select Lightweight
(DSCF and DNDC)Starts at $2.72No Change
Parcel Return ServiceStarts at $3.37No Change

A full list of commercial and retail pricing can be found on the Postal Service’s Postal Explorer website at https://pe.usps.com/text/dmm300/Notice123.htm

As is customary, the PRC will review the proposed prices before they are scheduled to take effect on Oct. 2. Complete USPS price filings, with prices for all products, can be found on the PRC website’s Daily Listings section at prc.gov/dockets/daily. Price change tables are also available on the Postal Service’s Postal Explorer website at pe.usps.com/PriceChange/Index.

The US Postal Service likes to remind us that it “generally receives no tax dollars for operating expenses and relies on the sale of postage, products, and services to fund its operations.”

USPS 6.5% RATE HIKE and More

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USPS RATE INCREASE COMING SOON.  

PROPOSED 6.5% RATE HIKE WILL BECOME EFFECTIVE JULY 10TH IF APPROVED BY THE PRC. VOLUME MAILERS HIT THE HARDEST! 

The United States Postal Service filed notice with the Postal Regulatory Commission (PRC) of price changes to take effect July 10, 2022. The new prices, if approved, include a two-cent increase in the price of a First-Class Mail Forever stamp from 58 cents to 60 cents.

For Specific Mail Increases by Type, Click Here

For USPS Market-Dominant Rate Hike Filing, Click Here 

The proposed rates, approved by the Governors of the U.S. Postal Service, would raise First-Class Mail prices approximately 6.5 percent which is lower than the Bureau of Labor Statistics annual inflation rate of 7.9 percent as of the end of February. The price changes reflect a judicious implementation of the Postal Service’s pricing authority provided by the Postal Regulatory Commission.

If the increases are approved by the PRC, the single-piece letter additional ounce price would increase to 24 cents, the metered mail 1-ounce price would increase to 57 cents and the price of a postcard stamp would increase to 44 cents. A one-ounce letter mailed to other countries would increase to $1.40. 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.

As inflation and increased operating expenses continue to rise, these price adjustments will help with the implementation of the “Delivering for America plan”, including a $40 billion investment in core Postal Service infrastructure over the next ten years. With the new prices, the US Postal Service will continue to provide the lowest letter-mail postage rates in the industrialized world and offer a great value in shipping.

The PRC will review the prices before they are scheduled to take effect.

Worried about rising shipping costs from USPS?  Contact us today to learn how to take control back!

Evaluating The Future of Drones

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George Jetson, of cartoon fame, will be born this year and his son Elroy will be zipping to school in an autonomous pod in about 40 years. That’s still science fiction, but science fact is already pointing us to where drone technology can take us in the very near future. 

Automatic delivery of mail and small goods has been around for generations. Skyscrapers were designed around intra-office pneumatic tube mail delivery systems. Local bank drive-thrus still use pneumatic tubes. The FBI had “OBR III”, the Mailmobile, in the 80s, that could carry 800lbs of mail on a loop around the office that would take about 45 minutes to complete. Modern drone technology or UAV (Unmanned Aerial Vehicle), however, is opening new opportunities and is broadening what’s possible for the delivery and cargo industries.

Google, Amazon, and UPS are all working on UAV parcel delivery systems. The process is slow going as the real world is unpredictable and safety is a high priority. Your neighbourhood is not a controlled environment which makes adapting automated technology that much more difficult. There are kids on bikes, kites in the air, people working on power lines or on their roofs taking down holiday lights. All of the everyday happenings in a residential area have to be navigated by automated technology and we are not quite there yet. Additionally, local regulation needs to grow and adapt to developing technology. There are privacy issues, noise restrictions, and safety concerns with having unmanned vehicles so close to our homes. This produces a lag between what technology can accomplish and what the law can provide for. 

Cargo transportation by UAVs in a warehouse environment doesn’t face the same kinds of limitations. For example, regulations on private property are much less intrusive because the environment can be controlled more. There are less unpredictable elements in a warehouse facility. You can build policies and practices for worker safety making the adoption of UAVs much more flexible. Existing buildings can also be quickly retrofitted for the guidance hardware necessary to run UAVs. Audi, for example, is pioneering just-in-time drone delivery directly to the production line. This can streamline parts storage while ensuring steady workflow as the right part is delivered exactly when the worker needs it.

Perhaps the biggest impediment to the adoption and widespread use of UAVs in logistics is the cost. Standardised, turn-key UAV systems don’t exist yet. Building anything like that is a serious capital investment, and risk-averse companies will be slow to adopt unproven technologies. We also can’t ignore the human resource element here either. While, by definition, UAVs are unmanned, they will require a whole new job category of technicians to build, program, maintain and service a fleet of drones. Education and workforce training could also slow down the adoption of UAVs in all segments of society.

One day we will have ice cream truck drones zipping around the neighbourhood, but only after the logistics industry has perfected the technology first. 

Are you curious what other technology is on the horizon in logistics and supply chain? Contact us today to learn more.

New Mailing Standards for the Separation of Hazardous Materials

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The US Postal Service has issued an interim final rule that will become effective upon publication in the Federal Register on June 6, 2022, with new requirements for the separation of hazardous materials (HAZMAT).

In addition, the interim final rule restricts the mail class that may be utilized when shipping pre-owned, damaged or defective electronic devices containing or packaged with lithium batteries (such as cell phones, tablets, laptops, cameras, power tools, etc.) to USPS Retail Ground, Parcel Select, Parcel Return Service or Ground Return Service, and requires new marking requirements for these mailings. These immediate changes are necessary to address a rise in incidents involving lithium batteries and other HAZMAT.

Although these requirements are effective June 6, 2022, the interim final rule provides a 30-day period for public comment, and a further final rule will be published that considers any comments. This interim final rule can be reviewed here.

Bringing USPS Out of the Box

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Checking the mailbox is part of every American’s day. Most of us don’t ever think about how a tiny envelope or a giant box gets from one side of the country to the other but we are keenly aware when there is a disruption in mail service. It is so important, not only to commerce, but to our experience of democracy that it’s enshrined in the Constitution.

The USPS delivers 425 million pieces of mail a day and employs over 600,000 people. It’s a massive institution with direct oversight by the federal government. People often spend their entire career at the Post Office and while this can create institutional integrity, it can also slow down growth and development in a rapidly changing world where technological developments can outpace our capacity to change laws. Because of this, the USPS has been boxed into a mode of operation that no longer serves the organization or our country’s citizens.

President Biden signed the Postal Service Reform Act of 2022 on April 6. This is a huge step in taking the Post Office out of some of those constraints and opens up new possibilities for the organization. The main function of this law is to lift the 2006 requirement that the Post Office pre-fund the health benefits for its retirees. No other private or public organization is required to do this and many see this as the main cause of the financial losses of the Post Office in the past couple of years. Additionally, the law provides more flexibility around price increases which will keep it competitive with private shipping and logistic companies.

The Reform Act passed with bipartisan cooperation and the support of the American Postal Workers Union. Many are attributing this success to Postmaster General Louis DeJoy.

DeJoy has been a polarizing figure inside our polarized political climate. His nomination to PMG was criticized because he had no Post Office experience. His 31 years of logistics in the private sector however gave him that “out-of-the-box” perspective on the industry as a whole that led to the passing of these reforms..

“With the legislative financial reforms achieved today, combined with our own self-led operational reforms, we will be able to self-fund our operations and continue to deliver to 161 million addresses six days per-week for many decades to come,” said Postmaster General and CEO Louis DeJoy. “I thank the Senate and our Committee leadership that broke the 10-year logjam which has long constrained the finances of the Postal Service. The Postal Service serves every American every day and so it’s only right that our future is now collectively assured by members of all political parties.”

We need the Post Office and we need the Post Office to be financially solvent. In 2020, prior to DeJoy’s appointment as Postmaster General, the USPS recorded a net loss of 9.2 billion dollars. That was cut in half under DeJoy’s oversight to 4.9 billion. The Post Office is not a private business beholden to shareholders, but it does owe, us, the citizens continued and uninterrupted service.

We’ve already seen DeJoy begin to take the USPS out of the constraining legislative box in two short years, and pave the way for future improvements during his tenure. Hopefully, he’ll break down the box and recycle it properly, too.

Looking for better USPS rates?  You aren’t stuck with what you’re paying. Let our experts benchmark your rates against your competitors and get the best in class rates you deserve.

USPS Implements New First-Class Standards

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U.S. Postal Service Implements New First-Class Package Service Standards and Updates Priority Mail Service Standards

On May 1, the Postal Service is taking additional actions to improve service reliability by announcing the implementation of changes to the First-Class Package Service (FCPS) service standards. This initiative is part of “Delivering for America,” the Postal Service’s 10-year plan to achieve financial sustainability and service excellence. A fact sheet on the proposed changes to service standards for first class packages is available here: Delivering for America: Our Vision and Ten-Year Plan to Achieve Financial Sustainability and Service Excellence – about.usps.com

carrier contract auditModifying these service standards will allow for additional transport time for long-distance package deliveries and increased network efficiencies. The new FCPS service standards will also enable additional package volume to be transported by surface transportation, which is more reliable and affordable compared to air transportation.

Sixty-four percent of First-Class Package Service volume will be unaffected by the proposed standard changes. Four percent will be upgraded from a 3-day to 2-day service standard. For the remainder of the volume (32 percent), the service standard will increase by one or two days.

“Modifying select service standards is a key growth element and enabler of our 10-year plan. This action will contribute to our cost savings efforts and improve our reliability across all product classes, including our growing package market,” said Postmaster General and CEO Louis DeJoy. “By implementing the elements of our 10-year plan, we will deliver the consistent, reliable service that the American people and our customers expect and deserve and grow package volume, spurring revenue growth that can be invested back into the Postal Service.”

The Postal Service previously received an advisory opinion from the Postal Regulatory Commission (PRC) regarding these service standard changes.

Additionally, the Postal Service is removing an extra day for Priority Mail transported via ground. The extra day was temporarily put in place in April 2020 to account for ongoing global supply chain, transportation and employee availability challenges across our network posed by the COVID-19 pandemic. Given the continued high demand on the overall air network, the Postal Service is retaining the extra day at this time for Priority Mail transported via air until the reliability of our key providers improves.

As part of implementing the new service standards for FCPS, the Postal Service is removing the extra day that has applied to FCPS. Service standards are delivery benchmarks for how long customers can expect the Postal Service to deliver different types of mail from origin to destination — Point A to Point B. Service standards are not the same as the percentage targets or the actual measured service performance.

With full implementation, the Postal Service’s 10-year plan aims to reverse a projected $160 billion in losses over the next 10 years. The Plan’s growth and efficiency initiatives will spur cash flow and savings to make $40 billion in capital investments over the next 10 years – including $20 billion towards the Postal Service’s mail and package processing network, facility upgrades and procurement of new processing equipment.

Need help navigating these updates?  Call us today our USPS specialists are standing by.