Highlights of Changes — Domestic and International Shipping Services
On September 22, 2009, the Governors of the Postal Service™ announced new prices and product features for our Shipping Services product line to be effective Monday, January 4, 2010. We also implement new mailing standards consisting of classification changes to support the price change, as well as other initiatives found in this edition of the Postal Bulletin.
The Postal Accountability and Enhancement Act of 2006 gives the Postal Service increased flexibility in pricing, product enhancements, and product introductions for Shipping Services. We will change only the Shipping Services prices in January. On October 15, 2009, the postmaster general announced that there would be no market dominant price increase for calendar year 2010. Market dominant services for domestic mail include First-Class Mail®, Periodicals, Standard Mail®, Package Services, and Extra Services. Market dominant services for international mail include First-Class Mail International™, International Priority Airmail™ (IPA®), International Surface Air Lift® (ISAL®), and Extra Services.
The following Shipping Services prices will change for 2010:
n Express Mail®.
n Priority Mail®.
n Parcel Select®.
n Destination delivery unit.
n Destination sectional center facility.
n Destination bulk mail center.
n Parcel Return Service.
n Global Express Guaranteed® (GXG®).
n Express Mail International® (EMI).
n Priority Mail International® (PMI).
Summary of Domestic Changes
Express Mail
On average, Express Mail prices increase by 4.5 percent. Express Mail flat-rate pricing is one flat rate regardless of the actual weight (up to 70 pounds) or domestic destination. The Sunday/holiday premium remains at $12.50. No other fuel surcharges, Saturday delivery, or residential delivery charges apply. All Express Mail prices can be found in Notice 123, Price List, on the Postal Explorer® home page at http://pe.usps.com.
Express Mail Retail Prices
Retail prices increase 4.5 percent on average. Other than the flat-rate envelope, retail prices continue to be based on distance (zone) and weight. The Express Mail Flat Rate Envelope retail price will be priced at $18.30. Other retail prices start at $13.65.
Express Mail Commercial Base Prices
Commercial base prices increase 4.5 percent on average and continue to average 5 percent lower than retail prices. The Express Mail Flat Rate Envelope will be priced at $17.40. Commercial base prices are available to customers who:
n Use an Express Mail Corporate Account (EMCA), including Federal Agency Accounts.
n Pay and print their postage online through Click-N-Ship® service.
n Are registered end-users of USPS®-approved PC Postage® providers using a qualifying shipping label.
n Pay postage using an information-based indicia (IBI) postage meter with an Express Mail label.
Express Mail Commercial Plus Prices
Commercial plus prices increase 4.4 percent on average and continue to average 14.5 percent lower than retail prices. The Express Mail Flat-Rate Envelope will be priced at $14.96. Commercial plus prices are available to new and existing customers who:
n Have account volume exceeding a minimum threshold, or who have a customer commitment agreement with the USPS, and:
n Use an Express Mail Corporate Account (EMCA), including Federal Agency Accounts, or
n Are registered end-users of a USPS-approved PC Postage provider using a qualifying shipping label.
Priority Mail
On average, Priority Mail prices increase by 3.3 percent. Priority Mail flat-rate pricing is one flat rate regardless of the actual weight (up to 70 pounds) or domestic destination. Customers continue to have five convenient choices for flat-rate pricing: the flat-rate envelope, small flat-rate box, medium flat-rate box (two sizes), and the large flat-rate box.
The Priority Mail Flat Rate Envelope and Priority Mail Small Flat Rate Box will now be priced separately. Additionally, the 1-pound price will now be based on the zone to which the item is sent. Previously, the 1-pound price was the same across all zones.
Priority Mail Retail Prices
Retail prices increase 3.9 percent on average. Other than the flat-rate packaging, retail prices — starting at $4.90 — continue to be based on distance (zone) and weight. We continue to offer the Priority Mail Large Flat Rate Box to APO/FPO and DPO destination addresses at $2 less than retail prices.
Priority Mail Commercial Base Prices
Commercial base prices increase 2.9 percent on average and continue to average 5.7 percent lower than retail prices. Commercial base prices are available for postage paid through:
n Click-N-Ship service.
n Registered end-users of USPS-approved PC Postage providers when using a qualifying shipping label.
n IBI postage meters (in conjunction with an approved shipping label that includes a Confirmation Services barcode with a postal routing code).
n Permit imprint.
Priority Mail Commercial Plus Prices
Commercial plus prices increase 0.9 percent on average and continue to average 9.6 percent lower than retail prices. Commercial plus prices are available to new and existing customers who meet specific volume, or who have a customer agreement with the USPS, and who are:
n Registered end-users of USPS-approved PC Postage products.
n Permit imprint customers.
n Priority Mail Open and Distribute customers.
* New for customers eligible for commercial plus pricing beginning in January include:
n A 1/2-pound price for items weighing up to 1/2 pound.
n A flat-rate padded envelope.
n Cubic pricing for flats and parcels.
Priority Mail Commercial Plus Cubic Pricing
Customers qualify for commercial plus cubic pricing with an annual total volume of 250,000 pieces or more or have a customer commitment agreement with the Postal Service. Each mailpiece must measure 0.50 cubic foot or less, weigh 20 pounds or less, and carry the marking for the applicable tier level.
Five pricing tiers, based on cubic measurement and zone, offer a convenient way for mailers to ship small, dense items.
Items are measured by multiplying the length, height, and width in inches, and rounding off the total. The total is then divided by 1728 and the resulting number will determine which price tier to use. Prices start at $4.22.
Note: Commercial base and commercial plus prices apply to postage only, and do not include Extra Services such as insurance and Pickup on Demand service.
Parcel Select
On average, Parcel Select prices increase by 4.9 percent. Prices for origin bulk mail center (OBMC), presorted BMC, and barcoded nonpresorted Parcel Select are not changing.
The increase pertains to destination entry only as follows:
n Destination delivery unit (DDU) — 3.9 percent.
n Destination sectional center facility (DSCF) — 6.9 percent.
n Destination bulk mail center (DBMC) — 6.9 percent.
Parcel Select items require a 50-piece minimum when using permit imprint or metered postage. However, new in January, the 50-piece minimum is not required for barcoded nonpresort mailings, provided that postage is paid using approved PC Postage products.
Loyalty and Growth Rebates, established in June 2009, continue to be offered until May 31, 2010.
Parcel Return Service
On average, Parcel Return Service prices increase 3.0 percent as follows:
n Return delivery unit (RDU) — 2.1 percent.
n Return bulk mail center (RBMC) — 3.3 percent.
Parcel Return Service is a companion product for Parcel Select and a convenient way for merchants who receive a large volume of returns to provide a label to their customers for return of merchandise. The merchant guarantees the return postage for these returns.
Summary of International Changes
In addition to the following international Shipping Services changes, the Postal Service adds an individual country listing for Kosovo to reflect its independence from the Republic of Serbia. All services currently available to Serbia will be available to Kosovo, with the exception of Express Mail International service and Priority Mail International insurance.
We also clarify terminology in the Mailing Standards of the United States Postal Service, International Mail Manual (IMM®) by making it consistent with language currently used in the Mailing Standards of the United States Postal Service, Domestic Mail Manual (DMM®) and, therefore, delete the use of the term “circular” when it pertains to parcels and change it to “nonrectangular.”
Global Express Guaranteed
On average, Global Express Guaranteed (GXG) prices will increase 4.1 percent. We continue to offer 10 percent lower-than-retail prices when customers prepare and pay for their shipments using commercial base pricing options. GXG is our premier expedited service through an alliance with FedEx Express to over 190 countries. Prices start at $33.95.
Express Mail International
On average, Express Mail International (EMI) prices will increase 2.9 percent. We continue to offer 8 percent lower-than-retail prices when customers prepare and pay for their shipments using commercial base pricing options.
EMI service provides reliable, high-speed delivery service to over 190 countries with a date-certain, money-back guarantee to select destinations. Prices start at $26.95.
Priority Mail International
On average, Priority Mail International (PMI) prices will increase 3.0 percent. We continue to offer 5 percent lower-than-retail prices when customers prepare and pay for their shipments using commercial base pricing options.
Unlike domestic offerings, the Priority Mail International Flat Rate Envelope and Priority Mail International Small Flat Rate Box remain the same for pricing.
Additional Information
Appropriate changes to the DMM and IMM will be available Monday, January 4, 2010, on Postal Explorer at http://pe.usps.com.
For complete pricing information, including the new Shipping Services prices and current mailing services prices, go to http://pe.usps.com: in the left sidebar, under “January 2010 Price Change”, click your desired file. We encourage customers to view the prices of products they use. Customers may also download and print the price tables.
— Pricing Implementation, Pricing, 9-10-09
Frequently Asked Questions
Q. When are Postal Service™ shipping prices changing?
A. January 4, 2010. This includes new prices for our shipping services: Express Mail®, Priority Mail®, Parcel Select® (destination entry only), Parcel Return Service, Global Express Guaranteed® (GXG®), Express Mail International® (EMI), and Priority Mail International® (PMI).
Q. Are First-Class Mail prices changing in 2010?
A. No. On October 15, 2009, Postmaster General John Potter announced that the Postal Service will not seek an increase in prices for First-Class Mail®, Standard Mail®, Periodicals, Parcel Post®, and some other services.
Q. Where are the new prices listed?
A. The January 2010 new prices are available on Postal Explorer® at http://pe.usps.com.
Q. How does the USPS price change compare to the other shipping companies’ price changes?
A. Postal Service shipping prices increase by 3.3 percent, on average. By comparison, competitors have announced price increases of nearly 6 percent. Unlike other shipping companies, the Postal Service does not impose surcharges for fuel, residential delivery, or Saturday delivery.
Q. Why are prices going up?
A. The costs of doing business — for things like transportation, utilities, and health care benefits — have continued to increase. Many people do not realize that postal operations are not subsidized by tax dollars. We rely on the sale of postal products and services to cover our operating costs.
Q. Are any prices going down?
A. Yes. For example, the retail price for the Priority Mail Flat Rate Envelope will be reduced from $4.95 to $4.90.
Q. Has the Postal Service considered cutting costs rather than raising prices?
A. During fiscal year 2009, which ended September 30, cost reductions totaled more than $6 billion, while the organization continued to deliver high quality service. Like many other businesses, the Postal Service cannot fully make up for the increase in its expenses by cutting costs. Many costs are influenced by outside factors such as transportation and economic conditions. However, for each of the past several years, the Postal Service has taken more than a billion dollars in costs out of the system.
Q. What are the new prices for flat-rated products?
Q. Are there any changes to the Express Mail and International price structures?
A. No.
Q. Are there any changes to the Priority Mail price structure?
A. Yes. The Priority Mail 1-pound price now will vary by distance shipped (zone).
In addition, there are new commercial plus prices including a new 1/2-pound price applying to packages weighing up to 8 ounces, a new flat-rate padded envelope priced at $4.95, and a new cubic volume-based pricing option.
Q. On average, by how much are Shipping Services prices changing for individual product segments?
Q. What is Commercial Base pricing?
A. Commercial base pricing is available for qualifying Express Mail and Priority Mail shippers who use the following postage payment methods: Click-N-Ship® service, approved PC Postage® providers, permit system, and an approved IBI metering device. Express Mail shippers also qualify when they use an Express Mail Corporate Account (EMCA) — including Federal Agency Accounts.
Commercial base pricing is available to GXG shippers who pay postage using IBI postage metering systems, who use Click-N-Ship service, or who are registered end-users of approved PC Postage providers.
Commercial base pricing is available to EMI and PMI shippers who pay postage using IBI postage metering systems and transmit customs forms electronically, who use Click-N-Ship service, or who are registered end-users of approved PC Postage providers. Additional price incentives are available for high volume EMI and PMI shippers.
Q. How much do customers save with Commercial Base pricing?
Q. What is commercial plus pricing?
A. Commercial plus pricing applies to large-volume shippers who qualify for commercial base pricing and who ship more than 100,000 Priority Mail or 6,000 Express Mai packages a year or who have a customer commitment agreement with the Postal Service.
Q. How much do customers save with commercial plus pricing?
A. Compared to retail prices, the savings are as follows:
n Priority Mail — 9.6 percent (on average).
n Express Mail — 14.5 percent.
Q. Who qualifies for the new cubic volume-based pricing option?
A. Priority Mail commercial plus shippers who send 250,000 or more packages a year, or who have a customer commitment agreement with the Postal Service, are qualified.
Q. How exactly does the new Priority Mail commercial plus cubic volume-based pricing option work?
A. The new option consists of five cubic volume price tiers. Packages are priced based on their size (cubic volume) rather than their weight. The smaller the package, the lower the price. Packages can range in size up to half a cubic foot and weigh up to 20 pounds. The traditional option of paying by weight remains available to all shippers.
Q. What are some benefits of the new Priority Mail commercial plus cubic volume-based pricing option?
A. Shippers can save money by using the new option. More generally, the new option encourages smaller and more space-efficient packaging. This saves the Postal Service transportation costs and continues our commitment to eco-friendly practices.
Q. Are there any changes to Parcel Select mailing standards?
A. Yes. The 50-piece volume minimum has been eliminated for barcoded nonpresort packages that are paid using PC Postage.
Q. Are there any Parcel Select prices that don’t change?
A. Yes. There are no price changes for the barcoded nonpresort, BMC-presort, and OBMC-presort categories.
Q. How much longer will the Loyalty and Growth Rebate Incentives be available for Parcel Select?
A. The Loyalty and Growth Rebate Incentives will be available to qualifying Parcel Select shippers until May 31, 2010.
— Pricing Implementation, Pricing, 9-10-09
Statistical Programs Price Change Software Release
The January 2010 Price Change software release provides updates, corrections, and revisions for the following data collection systems:
n City Carrier Cost System (CCCS).
n Rural Carrier Cost System (RCCS).
n In-Office Cost System (IOCS).
n Origin-Destination Information System — Revenue, Pieces, and Weight (ODIS-RPW).
n Transportation Cost System (TRACS).
n System for International Revenue and Volume Outbound — International Origin-Destination Information System (SIRVO-IODIS).
n System for International Revenue and Volume Inbound (SIRVI).
We will automatically distribute the software release to Statistical Programs laptops connected to the Postal Routing Network. We will provide a CD for sites using a dial-up connection. Statistical Programs employees will be notified of the software release, software release notes, and the update CD via e-mail and as a news item on the Statistical Programs webpage on the corporate Intranet.
Statistical Programs employees observe employee work activities and sample live mail at randomly selected points throughout the postal system. Local Operations and Customer Services employees can assist us with the price change by:
n Providing accurate information when data collectors conduct IOCS telephone readings of employee activities.
n Helping data collectors locate employees and mail in Post Offices™ and plants.
n Informing the district manager of Statistical Programs about changes in mail processing, delivery operations, and dispatch schedules.
Data from our systems is used to set prices, fulfill regulatory reporting requirements, measure workloads, detect fraud, prepare budgets, and make operational decisions. Cooperation of all employees is critical to ensure the integrity and accuracy of statistical sampling.
— Statistical Programs, Finance, 9-10-09
Contract Postal Unit Price Change
On Monday, December 28, 2009, Contract Access Retail System (CARS) at contract postal unit (CPU) sites will receive an automated software update, release 14, effective at 12:01 a.m. on January 4, 2010. This release will include all price and product changes to support the January 4, 2009, Shipping Services price change.
Additionally, on December 28, 2009, integrated retail terminal (IRT) sites will receive an updated diskette, version 85, which will be shipped to the IRT coordinators. District coordinators should distribute the updated diskettes as soon as possible and ensure installation is complete for the price change implementation date.
CPUs with an electronic scale must contact their vendor for update information.
— Retail Access Channels,
Retail Products and Services, 9-10-09
Retail Access Channels — Contract Postal Units
Task
|
Responsibility
|
Time Line
|
Start
|
Complete
|
1
|
CARS sites will receive an automated software update, release 14.
|
Headquarters
|
Download on Dec. 28, 2009
|
Effective 12:00 a.m. Jan. 4, 2010
|
2
|
IRT sites will receive an update diskette, version 85. Shipped to IRT coordinators on Dec. 28, 2009. Distribute and ensure installation is complete for the price change.
|
District coordinators, CORs
|
Dec. 28, 2009
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By Jan. 4, 2010
|
3
|
Electronic scales will be updated by the manufacturer or vendor.
|
CPU supplier, vendor
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Manufacturer-/vendor- coordinated
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Manufacturer-/vendor- coordinatedv
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4
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Stamps — Standard ordering processes in place
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CPU supplier: ABN, local SDO/Stamp Fulfillment Services
|
N/A
|
Ongoing
|
5
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Communications — Provide CPU suppliers with all retail operations information and support materials
|
District coordinators, CORs, and postmasters
|
Nov. 2009
|
Ongoing
|
USPS Approved Shippers
— Retail Access Channels, Retail Products and Services, 9-10-09
