TEL: (516) 822-1183
USPS

USPS: New Prices and Mail Products for 2022

/in , /by

The U.S. Postal Service filed notice with the Postal Regulatory Commission (PRC) on November 10th of price changes for Shipping Services to take effect Jan. 9, 2022.

The proposed prices, approved by the Postal Service Governors, would raise Shipping Services product prices approximately 3.1 percent for Priority Mail service, and 3.1 percent for Priority Mail Express service. Shipping Services price adjustments vary by product. Although Mailing Services price increases are based on the consumer price index, Shipping Services prices are primarily adjusted according to market conditions. The Governors believe these new rates will keep the Postal Service competitive while providing the agency with needed revenue.

USPS’ Upcoming Price Change

If favorably reviewed by the PRC, the new prices will include an increase in the price of a Small Flat-Rate Box to $9.45. The Medium Flat-Rate Box would increase to $16.10, the Large Flat-Rate Box would decrease to $21.50 and the price of the APO/FPO Large Flat-Rate Box would decrease to $20.00. Regular Flat-Rate Envelopes, Legal Flat-Rate Envelopes, and Padded Flat-Rate Envelopes would increase to $8.95, $9.25, and $9.65 respectively.

The proposed domestic Priority Mail Flat Rate Retail price changes are:

ProductCurrentPlanned Change
Small Flat-Rate Box$8.45$9.45
Medium Flat-Rate Box$15.50$16.10
Large Flat-Rate Box$21.90$21.50
APO/FPO Large Flat Rate Box$20.40$20.00
Regular Flat-Rate Envelope$7.95$8.95
Legal Flat-Rate Envelope$8.25$9.25
Padded Flat-Rate Envelope$8.55$9.65

According to USPS, “the Postal Service has some of the lowest letter-mail postage rates in the industrialized world and continues to offer a great value in shipping. Unlike some other shippers, the Postal Service does not add surcharges for residential delivery or regular Saturday delivery.”

The PRC will review the prices before they are scheduled to take effect. 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. For the Shipping Services filing, see Docket No. CP2022-22. The price change tables are also available on the Postal Service’s Postal Explorer website at pe.usps.com/PriceChange/Index.

The filing also included pricing to support USPS Connect, a suite of affordable package delivery solutions for businesses that the Postal Service expects to launch in 2022, if favorably reviewed.

In addition, the Postal Service is also supporting mail by requesting approval for two mail products focused on local communities.  First, after a 2-year market test, the Postal Service is requesting the establishment of a permanent Plus One product which will provide additional marketing options for businesses to reach local customers utilizing mail.  Building on the USPS Connect pilot, the Postal Service is requesting approval for a market test for a new USPS Connect Local Mail product which will provide the ability to send documents within local communities for same/day next delivery.

With full implementation, the Postal Service’s 10-year Delivering For America Plan is designed to reverse a projected $160 billion in operating losses over the next 10 years. The Plan’s growth and efficiency initiatives, including the proposed pricing changes, together with necessary legislation, should allow the Postal Service to make investments totaling approximately $40 billion over the next 10 years to modernize and improve their infrastructure to become more efficient and service responsive.

Remember, the US Postal Service receives no tax dollars for operating expenses and relies on the sale of postage, products, and services to fund its operations.

USPS’ Upcoming Price Change

USPS: Two Yearly Increases Better Than One!

/in , , , /by

Increased shipping costs in today’s Covid business environment is not new to shippers or to John Q. Public for that matter.  Add to that, rising inflation that we are beginning to experience and you can see an opening of the door to ever higher postage rates.  So, the U.S. Postal Service has announced a new rate hike schedule terming it “New Market Dominant Price Adjustment Schedule” and their intention is to raise postage rates twice a year going forward, but thank Goodness, not this coming January giving mailers a breather after two rate hikes in 2021.

The Postal Service states in its September 15th announcement, “to help customers better prepare for a new Market Dominant price adjustment schedule, the Postal Service will not raise prices on Market Dominant products, including Forever stamps, in January 2022.”

Instead, the next Market Dominant price adjustment is scheduled to be implemented in July 2022. Beginning January 2023, Market Dominant price adjustments will occur twice a year, (e.g. January 2023, July 2023, January 2024, July 2024, etc.). Market Dominant products include First-Class Mail (FCM), USPS Marketing Mail, Periodicals, Package Services and Special Services.

The July 2022 rate authority will include ten months of Consumer Price Index, (CPI) plus retirement, density, and non-compensatory class authorities as determined by the Postal Regulatory Commission (PRC). The January rate authority will include six months of CPI, plus any unused rate authority.  Subsequent July rate authority will include six months of CPI plus the retirement, density, and non-compensatory class authorities and any remaining unused rate authority according to USPS.

The Postal Service has submitted an official statement reflecting the above schedule with the PRC. The statement gives estimated filing and implementation dates for future adjustments of each mail class over the next three years.  To put mailers at ease, the Postal Service states that “it has some of the lowest letter mail postage rates in the industrialized world and also continues to offer a great value in shipping.”  But is that any consolation?  We think not!

Get a hold of rising shipping costs by calling us today.

Breaking News

USPS Announces Temporary Rate Adjustments

/in , , /by

The United States Postal Service filed notice today with the Postal Regulatory Commission (PRC) regarding a temporary price adjustment for key package products for the 2021 Peak Holiday Shipping Season. This temporary rate adjustment is similar to one imposed in 2020 that anticipated heightened peak-season package and shipping demand, which typically results in extra handling costs.

The planned Peak-Season Pricing, which was approved by the Governors of the Postal Service on Aug. 5, 2021 would affect prices on commercial and retail domestic competitive parcels, such as Priority Mail Express (PME), Priority Mail (PM), First-Class Package Service (FCPS), Parcel Select, USPS Retail Ground, and Parcel Return Service. International products would be unaffected. Pending favorable review by the PRC, the temporary rates would go into effect at 12:00 a.m., Central Time, on Oct. 3, 2021, and remain in place until 12:00 a.m., Central Time, Dec. 26, 2021.

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

USPS’ Upcoming Price Change

“Delivering for America,” the Postal Service’s 10-year plan for achieving financial sustainability and service excellence, calls for appropriate pricing initiatives. The Postal Service has some of the lowest mail postage rates in the industrialized world and continues to offer great values in shipping. These temporary rates will keep the Postal Service competitive while providing the agency with the revenue to cover extra costs in anticipation of peak-season volume surges, similar to levels experienced in 2020. The forecasted additional revenue from the time-limited increase will depend on the volume of packages shipped between Oct. 3 and Dec. 26, 2021 – the period the Postal Service historically considers its “holiday peak season.”

The planned price changes include:

Priority Mail, Priority Mail Express, Parcel Select Ground and USPS Retail Ground:

  •   $0.75 increase for PM and PME Flat Rate Boxes and Envelopes.
  •    $0.25 increase for Zones 1-4, 0-10 lbs.
  •    $0.75 increase for Zones 5-9, 0-10 lbs.
  •    $1.50 increase for Zones 1-4, 11-20 lbs.
  •    $3.00 increase for Zones 5-9, 11-20lbs.
  •    $2.50 increase for Zones 1-4, 21-70 lbs.
  •    $5.00 increase for Zones 5-9, 21-70 lbs.
ProductCurrentPlanned Increase
Parcel Select Destination
Delivery Unit DDU		Starts at $3.30No Change
Parcel Select Lightweight (DDU)Starts at $2.15No Change
FCPS CommericalStarts at $3.01.30 Cents
FCPS RetailStarts at $4.00.30 Cents
Parcel Select Lightweight
DSCF and DNDC		Starts at $2.55$1.00
Parcel Select DSCFStarts at $4.84$1.00
Parcel Select DNDCStarts at $6.85$1.00
Parcel Return ServiceStarts at $3.21$1.00

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

The PRC will review the prices before they are scheduled to take effect on Oct. 3, 2021. 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 price change tables are also available on the Postal Service’s Postal Explorer website at pe.usps.com/PriceChange/Index.

The USPS reports that its “Delivering for America” 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 approximately $20 billion towards the Postal Service’s mail and package processing network, facility upgrades and procurement of new processing equipment.  It’s important to remember that The USPS generally receives no tax dollars for operating expenses and relies on the sale of postage, products and services to fund its operations.

Need help navigating rate increases? Reach out to our consultants today to learn how to take control of rising shipping costs.

USPS’ Upcoming Price Change

US Postal Service Package Volumes Surge

/in , , , /by

The US Postal Service has reported total revenue of approximately $18.9 billion for the second quarter of fiscal 2021.  This represents an increase of approximately $1.1 billion, or 6% compared to the same quarter last year.

As a result of the Covid-19 pandemic, as well a continuing decrease in mail volumes, the Postal Service’s sales from mail services, (its largest sales category), continued to decline during the second quarter. Compared to the same quarter last year, Marketing Mail revenue declined by $511 million, or 13.7 percent, on a volume decline of approximately 2.3 billion pieces, or 13.5 percent. First-Class Mail revenue decreased by $390 million, or 6.1 percent, on a volume decline of approximately 1.1 billion pieces, or 7.9 percent, compared to the same quarter last year.

Shipping and Packages Increase

Meanwhile, to no one’s surprise, the Postal Service’s sales from Shipping and Packages increased by approximately $2.0 billion, or 33.6 percent, on a volume increase of 376 million pieces, or 25.3 percent, compared to the same quarter last year, as a result of the surge in e-commerce associated with the COVID-19 pandemic.  And as we all know this trend is expected to continue at least through the end of calendar year 2021 and beyond.

In addition, service performance improved in the 2nd fiscal quarter, and service improvements are continuing. USPS also anticipates ongoing network infrastructure investments, such as the installation of new package processing equipment, will meet customer’s evolving needs ahead of the 2021 Peak Holiday Shipping Season.

Delivering for America 10-Year Plan

“The financial results for the quarter and the ongoing trend of declining mail volume and increasing package volume highlights why our “Delivering for America 10-year plan” needs to be fully implemented,” said Chief Financial Officer, Joseph Corbett. “The plan delivers the framework for us to better innovate to grow revenue, work more efficiently and achieve financial sustainability to fulfill our universal service mission. If the plan is implemented in its totality, we expect to achieve break-even operating performance over the ten-year period and positive net income by FY2023 or FY2024, reversing $160 billion in projected losses over the next decade.”

Excluding non-cash workers’ compensation adjustments, total operating expenses were approximately $20.6 billion for the quarter, an increase of $872 million, or 4.4 percent, compared to approximately $19.7 billion for the same quarter last year. Actual total operating expenses, including the non-cash workers’ compensation adjustments, were approximately $19.0 billion for the quarter, a decrease of approximately $3.4 billion, or 15.1 percent, compared to the same quarter last year.

Compensation and Benefits

Compensation and benefits expense increased by $517 million, or 4.4 percent, compared to the same quarter last year, primarily resulting from higher work hours associated with the package volume growth, contractual wage increases and an increase in paid leave associated with the COVID-19 pandemic.

The USPS is serious about its ability to become a major player in the minds of parcel shippers, and not a second tier choice, as they had been associated with in the past.

Are you shipping with USPS?  Contact us today to learn how we can support your shipping with USPS.

USPS logo

USPS Resumes Network Consolidation Project

/in , , /by

The United States Postal Service announced on April 27th that it will resume its Network Consolidation efforts that were suspended back in 2015 after outcries from mailers and consumers that service would suffer from more cutbacks.

The movement of mail processing operations at 18 postal facilities was previously paused in 2015. Those select moves will follow USPS’ existing contractual process and are expected to be completed by November 2021. Due to a decline in mail volume, the USPS said they will relocate or remove unnecessary letter and flat sorting equipment as appropriate to make space for much needed package processing equipment. Moving, removing, and repurposing mail processing equipment and operations or “operational mail moves” is an ongoing Postal Service strategy dating back decades that allows for more efficient, timely delivery of mail and packages.

The USPS also announced accelerated investment and procurement of 138 package processing sorters that will be operational ahead of the 2021 Peak Holiday Shipping Season, with plans to purchase additional processing machines over the next 18 months as package volume continues to grow. As USPS expands its role in the e-commerce marketplace, it said it would deploy and maintain a diverse suite of package sorters and material handling equipment to optimize processing throughputs. Just in March alone, USPS’ customer demand for package deliveries grew 28 percent over last year.  There is no reason to believe that this trend will not continue as more and more on-line shopping with residential delivery requirements is here to stay, at least for the foreseeable future.

USPS also announced that it will lease an additional 45 annex facilities located near processing centers in key locations to support surges and overflow of packages.

The Postal Service has a national network of mail processing facilities that processes and sorts nearly 430 million pieces of mail and packages to 161.4 million addresses at least six days a week. In 2020, the Postal Service delivered more than 129.2 billion pieces of mail and packages to customers located in every state and territory, county, city, town and rural area in the nation.  With their delivery network, they are uniquely well positioned to be a major player in the delivery of packages to US and global consumers.

Shipping with USPS?  Contact us today to see how ICC can help you with the best service terms and rates.

ICC breaking news

Postmaster General, Union Leadership Form Joint Task Force on Service Performance

/in , , /by

In an article published in The Official Mail Guide, the US Postmaster and the Letter carrier union leadership have created a joint task force seeking to find solutions to ongoing service issues at the US Postal Service.  We believe this will be a great endeavor, as it brings together ALL of the key stakeholders to work collaboratively to find long term, real solutions to ongoing service issues.

Postmaster General, Union Leadership Form Joint Task Force on Service Performance

The following Joint Statement was issued March 23, 2021 by:

Postmaster General and Chief Executive Officer Louis DeJoy

Fred Rolando, President of the National Association of Letter Carriers

Paul Hogrogian, National President of the National Postal Mail Handlers Union

Daniel Heins, National President of the United Postmasters and Managers of America

Mark Dimondstein, President, American Postal Workers Union

Ronnie Stutts, President National Rural Letter Carriers’ Association

Brian Wagner, President National Association of Postal Supervisors

WASHINGTON, DC — “Recognizing that issues in certain facilities across the country continue to hamper service performance, we have come together to form a National Joint Task Force on Service Performance to identify and craft solutions to improve service at specific locations within the network. Members of the Joint Task Force will work together on making necessary changes to strengthen service reliability, share best practices and stay vigilant to any emerging issues.

“The National Task Force will also ensure resources are allocated, lines of communication are open and concerns that are not resolved locally are escalated quickly.

“Maintaining strong service performance is a process, not a destination; through weather, natural disasters and a holiday season in the midst of a pandemic. Mail never stops flowing through our system. If bottlenecks occur it can have a cascading impact on the network. Addressing issues early can make all the difference.”

The National Task Force held their first meeting on March 22.