Highlights of Changes — Domestic and International Shipping Services
On October 11, 2012, the Postal Service™ announced new prices and product features for domestic and international Shipping Services, effective January 27, 2013. We will also implement new mailing standards consisting of classification changes to support the price changes, as well as other initiatives found in this edition of the Postal Bulletin.
The following domestic and international Shipping Services prices will change for 2013:
n Express Mail®.
n Priority Mail®.
n Parcel Select®.
n Parcel Return Service.
n First-Class Package Service™.
n Standard Post™.
n Domestic extra services.
n Global Express Guaranteed® (GXG®).
n Express Mail International® (EMI®).
n Priority Mail International® (PMI®).
n First-Class Package International Service™.
n Airmail M-Bags.
n International Priority Airmail™ (IPA®).
n International Surface Air Lift™ (ISAL®).
n International extra services.
Summary of Domestic Changes
Express Mail
On average, Express Mail prices increase by 5.8 percent. Express Mail Flat Rate pricing is one flat rate regardless of the actual weight (up to 70 pounds) for domestic destinations. The Sunday/holiday premium remains at $12.50 for the fourth year in a row. No other fuel surcharges, Saturday delivery, or residential delivery charges apply. Express Mail Flat Rate Boxes were introduced last year and, to encourage use, the price for all customers, $39.95, is unchanged for January 2013.
Express Mail Retail Prices
Retail prices increase on average 6.5 percent. Express Mail retail prices begin at $14.10. Express Mail Flat Rate Envelope retail prices increase to $19.95.
Express Mail Commercial Base Prices
Commercial Base™ prices will increase on average 2.0 percent in January 2013. The Express Mail Flat Rate Envelope, Legal Flat Rate Envelope, and Padded Flat Rate Envelope will be priced at $18.11.
Express Mail Commercial Plus Prices
Commercial Plus™ prices will increase on average 1.0 percent. The Express Mail Flat Rate Envelope, Legal Flat Rate Envelope, and Padded Flat Rate Envelope will be priced at $12.85.
Priority Mail
On average, Priority Mail prices increase by 6.3 percent. At retail, all Flat Rate Envelopes measuring 12-½" x 9-½" or smaller, including the Priority Mail Gift Card Flat Rate Envelope, Priority Mail Small Flat Rate Envelope, and Priority Mail Window Flat Rate Envelope will be priced at $5.60, while the Priority Mail Legal Flat Rate Envelope will be priced at $5.75 and the Priority Mail Padded Flat Rate Envelope will be priced at $5.95.
Priority Mail Retail Prices
Retail prices increase an average of 9.0 percent. Other than Flat Rate priced items, Priority Mail retail prices, starting at $5.60, continue to be priced based on distance (zone) and weight. We continue to offer the Priority Mail Large Flat Rate Box to APO/FPO/DPO destination addresses at $2 less than the retail price.
Priority Mail Commercial Base Prices
Commercial Base prices are on average 11.3 percent lower than retail prices. All Flat Rate Envelopes measuring 12-½" x 9-½" or smaller, including the Priority Mail Gift Card Flat Rate Envelope, Priority Mail Small Flat Rate Envelope, and Priority Mail Window Flat Rate Envelope, are priced at $5.05, while the Priority Mail Legal Flat Rate Envelope is priced at $5.25 and the Priority Mail Padded Flat Rate Envelope is priced at $5.70. Flat Rate Box prices start at $5.15.
Priority Mail Commercial Plus Prices
Commercial Plus prices on average are 16.2 percent lower than retail prices and prices start at $4.58. New for January 2013, customers shipping Critical Mail letters and flats will have the option of receiving a signature upon delivery as part of the service offering.
1. Includes all Flat Rate Envelopes 12 ½" x 9 ½" or smaller, including Priority Mail Gift Card Flat Rate Envelope, Priority Mail Small Flat Rate Envelope, and Priority Mail Window Flat Rate Envelope.
2 Packaging for USPS-produced Priority Mail Padded Flat Rate Envelope and Legal Flat Rate Envelope is not available at retail but may be ordered online at usps.com/shop.
Priority Mail Commercial Plus Cubic Pricing
Priority Mail Commercial Plus cubic pricing starts at $4.58 and customers must use approved payment methods. Cubic mailers will continue to be able to use soft packaging as well as traditional boxes.
Regional Rate Box
Priority Mail Regional Rate Boxes are available for Priority Mail commercial packages and Merchandise Return Service (MRS) packages returned at Priority Mail prices. Mailers must use USPS-produced Regional Rate Boxes to qualify for Regional Rate prices. There are three options for customers: Box A has a 15-pound maximum weight limit and starts at $5.32; Box B has a 20-pound maximum weight limit and starts at $6.16; and Box C has a 25-pound weight limit and starts at $15.11. If Regional Rate Boxes are deposited at retail Post Office locations, the price is 75-cents more than the Commercial Base price.
Parcel Select
On average, Parcel Select prices will increase by 9.0 percent. Parcel Select is the Postal Service’s bulk ground shipping product primarily for destination-entered parcels. The Postal Service’s traditional competitors UPS and FedEx are the largest users of Parcel Select, typically bringing packages sent by large retailers to Postal Service destination delivery units (DDUs) for USPS to deliver to residential addresses.
The average price increase for Parcel Select is:
Parcel Select Regional Ground, a product added in April 2011, is now being discontinued.
Parcel Return Service
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 of these items. On average, Parcel Return Service prices increase 4.8 percent as follows:
n Return Network Distribution Center (RNDC): 1.0 percent
n Return Sectional Center Facility (RSCF): less than 1.0 percent
n Return Delivery Unit (RDU): 8.5 percent
The Postal Service is also introducing a full network return solution, PRS-Full Network. It is available to high volume mailers with at least 50,000 pieces annually. PRS-Full Network is expected to be especially attractive to e-commerce shippers with significant returns volume. Scan-based payment through a CAPS debit account and the use of the Intelligent Mail™ parcel barcode (IMpb) on the parcels are required.
First-Class Package Service
First-Class Package Service is an offering for lightweight (less than 1 pound) parcels used by businesses for fulfillment purposes — the majority of the volume for this competitive product is made up of parcels that fall in the 1- to 5-ounce weight range. The average overall increase is 3.0 percent. There is a surcharge for irregular shaped parcels. Commercial Plus mailers may pay postage with PC Postage. IMpb is required for presort prices.
Standard Post (formerly named Parcel Post)
The Postal Service transferred Parcel Post from the market dominant product list to the competitive product list and renamed it Standard Post. Standard Post now is no longer part of Package Services and stands alone as a service. The overall average price increase is 21 percent. These parcels will receive free USPS Tracking/Delivery Confirmation just as other competitive product parcels do. Standard Post will not appear on postage statements as it is designed as a “retail” product with payment by stamps or meter and is deposited only at the retail counter or picked up by Package Pickup (formerly named Carrier Pickup).
Other Competitive Offerings
Competitive PO Boxes
The average price increase is 2.6 percent.
Premium Forwarding Service
USPS Premium Forwarding Service® (PFS®) is a personalized service for reshipping mail from a primary residential address (or PO Box with certain restrictions) to a temporary address using a Priority Mail shipment. There is an overall average price increase of 10.5 percent: the enrollment fee remains at $15.00 while the weekly fee increases to $17.00.
Adult Signature Service
Adult Signature service was added to the competitive price list in June 2011. As of January 2013, the prices will be $4.95 for basic service and $5.15 for person-specific service.
Address Enhancement Services
Address Enhancement Services include correcting erroneous or incomplete addresses, helping demographers relate ZIP® Codes to United States Bureau of Census data, and other address services. Depending on the particular service, their prices are increasing between 3.7 and 17.7 percent.
Pickup on Demand Service
The Pickup on Demand daily fee, which was unchanged for four years, will increase from $15.30 to $20.00.
Domestic Money Orders
The fee for purchasing domestic money orders has increased from $1.15 to $1.20 for money orders from $0.01 up to $500; and from $1.55 to $1.60 for money orders from $500.01 up to $1000. The fee for all postal military money orders (issued by military or diplomatic facilities) of any amount increases from $0.30 to $0.35. The inquiry fee has increased from $5.50 to $5.75
Summary of International Changes
Published prices for the retail international Shipping Services — Global Express Guaranteed (GXG), Express Mail International (EMI), Priority Mail International (PMI), and Airmail M-Bags, increase an average of 14.5 percent. Prices for the commercial international Shipping Services — International Priority Airmail (IPA) and International Surface Air Lift (ISAL) — increase an average of 3 percent.
Global Express Guaranteed
Global Express Guaranteed (GXG) is the Postal Service’s premier international expedited product with delivery provided by FedEx Express. GXG provides date-certain delivery in 1–3 business days (for many major markets; average number of days may vary based upon origin and destination) to more than 190 countries, with a money-back guarantee. See https://www.usps.com/ship/gxg.htm for more information. Retail prices start at $49.95.
On average, GXG prices will increase 9.6 percent. For Commercial Base prices, customers who prepare and pay for shipments online at usps.com or by registered end-users using an authorized PC Postage® vendor will receive variable savings (based on the item’s weight and price group) up to 12 percent below the retail price.
Commercial Plus pricing is available for large volume customers. Qualifying customers, who tender at least $100,000 in annual postal revenue from international expedited products —GXG, Express Mail International, Priority Mail International, and (new this year) First-Class Package International Service — may be eligible to receive Commercial Plus pricing at a variable discount of up to 17 percent below the retail price. Required postage payment options for Commercial Plus pricing are permit imprint and registered end-users using an authorized PC Postage vendor.
Shippers who meet certain revenue thresholds and make certain revenue commitments may be eligible for customized Global Expedited Package Services (GEPS) contracts that can include GXG service.
Express Mail International
Express Mail International provides reliable, high-speed service in 3 to 5 average business delivery days (for many major markets; average number of days may vary based upon origin and destination) to over 190 countries with a money-back guarantee to select destinations. See https://www.usps.com/ship/express-mail-international.htm for more information.
Express Mail International prices increase an average of 13.2 percent. The Commercial Base price for customers who prepare and pay for shipments via permit used in conjunction with GSS, online at http://www.usps.com, or by using an authorized PC Postage vendor will be up to 10 percent below the retail price, based on the item’s weight and price group. The discount applies only to the postage portion of Express Mail International prices. Retail prices start at $33.95. The amount of Express Mail International merchandise insurance coverage available for no fee will be increased from $100 to $200.
Commercial Plus prices for Express Mail International service were introduced in 2012 and continue to be available in 2013. Qualifying customers must tender at least $100,000 per year of international expedited products, including (new this year) First-Class Package International Service. Required postage payment options for Commercial Plus pricing are permit imprint and by registered end-users using an authorized PC Postage vendor. Customers who qualify for Commercial Plus pricing will receive a variable discount (based on the item’s weight and price group) of up to 16 percent below the retail price. The discount applies only to the postage portion of the Express Mail International price.
The 20-pound maximum weight formerly applied to Express Mail International Flat Rate Envelopes is changing to 4 pounds, while the maximum for the EMI Flat Rate Box remains 20 pounds.
Priority Mail International
On average, Priority Mail International (PMI) prices will increase 15.1 percent. The Commercial Base price for customers who prepare and pay for shipments via permit imprint when used in conjunction with Postal Service-supplied software and Customs-related functions, online at USPS.com, or by registered end-users using an authorized PC Postage vendor will be up to 9 percent below the retail price. The discount applies only to the postage portion of the Priority Mail International price.
New for January 2013, free electronic USPS Delivery Confirmation International offers scan events for customers using select software or online tools. E-USPS DELCON INTL is optionally provided for certain Priority Mail International Flat Rate Envelopes and Small Flat Rate Boxes to select destinations. It will be available first only to Canada.
Customers who qualify for Priority Mail International Commercial Plus pricing will receive a variable discount (based on the item’s weight and price group) of up to 14 percent below the retail price. Qualifying customers must tender at least $100,000 per year of international expedited products including any combination of GXG, Express Mail International, Priority Mail International, and (new this year) First-Class Package International Service. Required postage payment options for Commercial Plus pricing are permit imprint or registered end-users using an authorized PC Postage vendor.
For Priority Mail International Flat Rate Envelopes and Small Flat Rate Boxes, the Postal Service is combining Mexico with the “All Other Countries” price tier. Previously, Mexico and Canada were combined in a price tier. Only Canada will now have a unique price for Priority Mail International Flat Rate Envelopes and Small Flat Rate Boxes.
First-Class Package International Service
Effective January 27, 2013, the Postal Service is transferring First-Class Mail International packages and rolls from the market dominant (Mailing Services) product list to the competitive (Shipping Services) product list and renaming it First-Class Package International Service™ (FCPIS). The same mailing requirements such as price groups, maximum value, and weight limits apply.
The pricing structure for FCPIS will be more simplified in that there will be one price of $6.55 for 1- to 2-ounces to anywhere in the world; 3- to 4-ounces within each country price group will have identical prices; and 5- to 8-ounces within each country group will have identical prices. New for January 2013, free electronic USPS Delivery Confirmation International offers scan events for customers using select software or online tools. E-USPS DELCON INTL is optionally provided for First-Class Package International Service to select destinations. It will be available only to Canada to start with.
As with other USPS competitive international shipping options, Commercial Base pricing will be available to online customers who use Click-N-Ship service or registered end-users using an authorized PC Postage vendor to prepare and pay for shipments. Commercial Base pricing will offer a variable discount of up to 10 percent below the retail price for FCPIS.
Commercial Plus pricing is available for large volume customers. To qualify for Commercial Plus pricing, customers must commit to tendering at least $100,000 per year in annual postal revenue from international expedited products including any combination of GXG, Express Mail International, Priority Mail International, and First-Class Package International Service. Required postage payment options for Commercial Plus pricing are permit imprint or by registered end-users using an authorized PC Postage vendor. Customers who qualify for FCPIS Commercial Plus pricing will receive a variable discount (based on the item’s weight and price group) of up to 15 percent below the retail price. The discount applies only to the postage portion of the First-Class Package International Service price.
1. 4-pound weight limit.
2. One of the two USPS-produced Express Mail International Flat Rate Boxes, Item EM-FRB1, is nonmailable when paid at the retail price using shipping Label 11-B, Express Mail Post Office to addressee, due to size constraints and to ensure compliance with Customs requirements. However, it is mailable when payment is made using a permit imprint or online postage.
3. Priority Mail International Flat Rate Envelopes are no smaller than 5 x 10 inches and no larger than 9-½ x 15 inches, as defined in the IMM; 4-pound weight limit.
4. Priority Mail International Small Flat Rate Boxes are various sizes, as defined in the IMM, not to exceed 1/20 cu. ft.; 4-pound weight limit.
5. Priority Mail International Medium Flat Rate Boxes are various sizes, as defined in the IMM, not to exceed 1/3 cu. ft.; 20-pound weight limit.
6. Priority Mail International Large Flat Rate Boxes are various sizes, as defined in the IMM, not to exceed 1/2 cu. ft.; 20-pound weight limit.
Other International Mail Changes
Airmail M-bags are direct sacks of printed matter and non-dutiable merchandise sent to a single foreign addressee at a single address. The price increase for Airmail M-bags averages 7.3 percent.
International Priority Airmail (IPA) service, including IPA M-bags, is a bulk commercial air service designed for business mailers for volume mailings of all international letter post items weighing up to 4 pounds and whose value is under $400. The price increase for IPA service averages 1.9 percent.
International Surface Air Lift (ISAL) service, including ISAL M-Bags, is a bulk commercial service, which provides expedited dispatch and transportation for mailers of volume mailings of all international letter post items weighing up to 4 pounds and whose value is under $400. ISAL travels by air to the destination country where it is then entered into the foreign postal administration’s surface network. The price increase for ISAL service averages 4.4 percent
Depending on destination and mail type, customers can add a variety of international extra services, such as Express Mail International Insurance, Certificate of Mailing, Registered Mail service, Return Receipt service, and Pickup on Demand service. The amount of Express Mail International merchandise insurance coverage available for no fee will be increased from $100 to $200. The price for international competitive extra services will increase an average of 0.0 percent — prices for several of the international ancillary services are increasing but will be offset by decreases in others. The fee for International Postal Money Orders will increase from $4.45 to $4.50 and the inquiry fee will increase from $5.50 to $5.75.
Additional Information
The Mailing Standards of the United States Postal Service, Domestic Mail Manual (DMM®) and Mailing Standards of the United States Postal Service, International Mail Manual (IMM®) will be updated on the Postal Explorer® website at http://pe.usps.com on January 27, 2013. Updates can be found in this issue of the Postal Bulletin.
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 “*NEW* Jan. 27, 2013 Price Change Info,” click on your desired file. Customers may also download and print the price tables.
Frequently Asked Questions
Q. How much are prices going up?
A. The overall price change for all Shipping Services is 9 percent, with Express Mail prices increasing an average 5.8 percent and Priority Mail prices increasing an average 6.3 percent.
Q. When will the new prices take effect?
A. Sunday, January 27, 2013, at 12:01 a.m. EST.
Q. Why are Shipping Services prices going up?
A. The Postal Service adjusts its shipping prices annually just as other shipping companies do. Unlike other shippers, the Postal Service doesn’t add surcharges for fuel or for residential or Saturday delivery.
Q. What role does the Postal Regulatory Commission play in the Shipping Service price adjustments?
A. The Postal Regulatory Commission (PRC) reviews the prices before they become effective on January 27, 2013. By law, each product must cover its attributable costs. As a group, Postal Service Shipping Services products must contribute 5.5 percent of the Postal Service’s institutional costs.
Q. What are the new retail prices for Priority Mail Flat Rate Boxes and Envelopes?
n Small box - $5.80.
n Medium box - $12.35.
n Large box - $16.85.
n Large APO/FPO/DPO box - $14.85.
n Regular envelope - $5.60.
n Legal envelope - $5.75.
n Padded envelope - $5.95.
Q. What is the new price for an Express Mail Flat Rate Envelope?
A. The retail price for the domestic Express Mail Flat Rate Envelope, Express Mail Padded Flat Rate Envelope and Express Mail Legal Flat Rate Envelope will be $19.95 in January 2013.
Q. What new products and services will be available when the prices change in January?
A. The PRC approved the transfer of Parcel Post from the competitive product list to the market dominant product list and it has been renamed Standard Post. Also, the Postal Service will be offering free USPS Tracking/Delivery Confirmation with all of our competitive parcels, including retail Priority Mail and Standard Post. Also new for January 2013, customers shipping Critical Mail letters and flats will have the option of receiving a signature upon delivery as part of a new service offering.
Q. What is Standard Post?
A. Standard Post is the new name for Parcel Post. Standard Post is very similar to Parcel Post of the past, except it is now strictly a retail product — payment is by stamps or meter and Standard Post is deposited at the retail counter or picked up by Package Pickup. It will no longer appear on postage statements. Standard Post parcels will receive free tracking visibility just as the other competitive product list parcels do.
Q. What if I ship packages to U.S. military personnel serving overseas?
A. The Military Care Kit and special pricing make it easy to send care packages to loved ones stationed overseas. The Postal Service is the only way to ship directly to APO, FPO, and DPO addresses.
The Military Care Kit includes Priority Mail tape, Priority Mail address labels, appropriate customs forms, two Priority Mail Medium Flat Rate Boxes, and two Priority Mail APO/FPO/DPO Large Flat Rate Boxes. With the January 27, 2013, price change, the Priority Mail APO/FPO/DPO Large Flat Rate Box is priced at $14.85, two dollars less than the Priority Mail Large Flat Rate Box retail price at $16.85.
Q. Where can customers get the Military Care Kit?
A. To order the kit, call 1-800-610-8734.
Q. What is the overall average increase for each domestic Shipping Services product and service?
n Express Mail – 5.8 percent.
n Priority Mail – 6.3 percent.
n Parcel Select – 9.0 percent.
n Parcel Return Service – 4.8 percent.
n First-Class Package Service — 3.0 percent.
n Standard Post – 21 percent.
n Premium Forwarding Service –10.5 percent increase (only weekly reshipment prices increase).
n Address Enhancements Services – 3.7 percent to 17.7 percent, depending on the service.
n Competitive Post Office Box Service – 2.6 percent.
— Product Classification,
Pricing, 12-13-12
