Highlights of Changes — Domestic and International Shipping Services
On November 12, the Governors of the Postal Service™ announced new prices and product features for our shipping services product line to be effective Sunday, January 18, 2009. We will also implement new mailing standards consisting of minor classification changes to support the price changes. 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 only change the shipping services prices in January. In February 2009, we will announce price changes for mailing services, including stamp prices and International Surface Air Lift® (ISAL®) and International Priority Airmail™ (IPA®) prices to take effect in May 2009.
For complete pricing information, including the new shipping services prices and current mailing services prices, go to www.usps.com/prices. We encourage customers to view the prices of the products they use; they may download and print the price tables.
Note to readers: Monday, January 19, 2009, Post Offices™ will be closed to observe the Martin Luther King, Jr., Birthday, a national holiday. There will be limited or no retail service available that day.
Shipping services consist of:
Appropriate changes to 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 available Sunday, January 18, 2009, at http://pe.usps.com.
Overall, Express Mail prices will increase 5.7 percent on average. Other than the flat-rate envelope, Express Mail prices continue to be based on weight and distance (zone). We will continue reduced commercial base pricing, and replace the current rebate process for high-volume commercial base customers with a separate pricing category —commercial plus. We will also have individual price lists for all the Express Mail pricing categories. The Express Mail flat-rate envelope retail price will be $17.50 for material mailed in a flat-rate envelope, regardless of the weight or distance traveled. The Sunday/holiday premium price will remain $12.50.
Express Mail retail prices can be found on page 2 of Notice 123, Price List, available at www.usps.com/prices. A copy of Notice 123 is also published in this Postal Bulletin.
Commercial base prices will increase 3.7 percent on average and will be 5 percent below retail prices. The Express Mail flat-rate envelope will be priced at $16.63. We will expand commercial base price availability to include customers paying postage using an approved information based indicia (IBI) metering system, and customers who use Express Mail Corporate Accounts (EMCA), including Federal Agency Accounts, Click-N-Ship® service, or registered end-users of approved PC Postage® systems. PC Postage systems must have the ability to produce approved Express Mail shipping labels. Effective January 2010, IBI metering systems must be able to electronically provide transactional data by individual customer.
Express Mail commercial base prices can be found on page 7 of Notice 123, Price List.
New commercial plus pricing results in a 0.4 percent increase and will be 14.5 percent below retail prices. For example, the Express Mail flat-rate envelope will be priced at $14.96. Commercial plus prices will be available to existing customers whose cumulative account volume exceeds 6,000 pieces in the previous 4 calendar quarters, or customers who have a customer commitment agreement with the Postal Service. For commercial plus prices, customers must use an EMCA, including Federal Agency Accounts, or be a registered end-user of a PC Postage system using shipping labels as described in the Express Mail Commercial Base Prices section.
Express Mail commercial plus prices can be found on page 8 of Notice 123, Price List.
Overall, Priority Mail prices will increase 3.9 percent on average, and retail prices will increase 4.7 percent. The Priority Mail flat-rate envelope retail price and the unzoned 1–pound price will be $4.95. We also introduce a new Priority Mail small flat-rate box that will be priced the same as the flat-rate envelope at $4.95, regardless of the actual weight of the piece or its destination. Customers will have four convenient flat-rate box options to choose from. A table of the new Priority Mail flat-rate pricing appears at the end of the New Priority Mail Commercial Plus Prices section. We continue to offer the $2 discount for the large flat-rate box going to APO/FPO destination addresses.
Priority Mail retail prices can be found on page 3 of Notice 123, Price List.
Commercial base prices will be 4.7 percent on average lower than retail prices. The Priority Mail flat-rate envelope and the new small flat-rate box will be priced at $4.80. We will expand commercial base price availability to include customers paying postage using an IBI metering system with an approved shipping label that includes a confirmation services barcode with a postal routing code. Commercial base prices continue to be available to customers who use Click-N-Ship service, or registered end-users of PC Postage systems producing approved shipping labels that include a confirmation services barcode with a postal routing code, or customers using permit imprint manifest mailing systems (MMS). Effective January 2010, IBI metering systems must be able to electronically provide transactional data by individual customer.
Priority Mail commercial base prices can be found on page 9 of Notice 123, Price List.
New commercial plus prices will be available to:
For commercial plus prices, customers must pay Priority Mail postage using a USPS-authorized PC Postage product producing individual shipping labels, or using a permit imprint manifest mailing system (MMS). The new pricing category will provide incentives for volume and revenue growth from high-volume customers. Commercial plus pricing results in only a 1 percent increase over current commercial base prices, and will be 7 percent on average below new retail prices.
Priority Mail commercial plus prices can be found on page 10 of Notice 123, Price List.
Remember, commercial base and commercial plus prices apply to postage only, and not extra services such as insurance and Pickup-on-Demand service. We also continue to offer no-fee (electronic) Delivery Confirmation™ service with Priority Mail commercial base and commercial plus pricing.
New Priority Mail Flat-Rate Pricing
Parcel Select combines parcel consolidator expertise and logistics with the vast delivery network of the Postal Service. Parcels are primarily for destination entry, such as a Parcel Select–Destination Delivery Unit (DDU), Parcel Select–Destination Sectional Center Facility (DSCF), and Parcel Select–Destination Bulk Mail Center (DBMC). Parcel Select also includes Inter-BMC/ASF parcels prepared and mailed at Origin BMC (OBMC) Presort and BMC Presort, as well as machinable parcels prepared for barcoded discounts.
Parcel Select destination entry parcels retain no-fee (electronic) Delivery Confirmation service, and we continue to offer the loyalty and growth incentives implemented in May 2008. The price increase for Parcel Select will be 4.7 percent on average for DDU, 6.8 percent for DSCF, and 9.1 percent for DBMC. There are no pricing changes to OBMC Presort, BMC Presort, and machinable parcels prepared for barcoded discounts.
Parcel Select prices begin on page 17 of Notice 123, Price List.
Parcel Return Service (PRS) is the companion product for Parcel Select, for merchants who receive a large volume of returns and want to provide their customers with the convenience of a return solution, and for shipping consolidators or reverse logistic providers. PRS features free Carrier Pickup™ service and competitive rates with two pricing options — one for return delivery unit and the other for return bulk mail center. There will be no price increase for the return delivery unit parcels and an average of 7.1 percent increase for the return bulk mail center parcels.
PRS prices can be found on page 23 of Notice 123, Price List.
Overall, international shipping services prices will increase 8.5 percent on average. Prices increase for Global Express Guaranteed (GXG), Express Mail International, Priority Mail International, and M-bags. We will expand commercial base prices to include qualifying end-user customers that pay postage using an IBI metering system and transmit Customs forms electronically.
For mail destinating to Australia and New Zealand, we will add a new separate price group 10, which is only for Express Mail International and Priority Mail International service. First-Class Mail International items, including Direct Sacks (Airmail M-bags), will continue to use price group 3 for Australia and price group 6 for New Zealand, and GXG will continue to use price group 6 for both countries.
Published GXG prices will increase 11.2 percent on average, and we continue to offer a 10 percent reduction with commercial base prices. We will expand commercial base price availability to include customers paying postage using information based indicia (IBI) postage metering systems, and customers who use Click-N-Ship service, and registered end-users of PC Postage systems. These customers must electronically transmit Customs forms.
GXG prices can be found on page 25 of Notice 123, Price List.
Express Mail International prices will increase by 8.5 percent and vary based on country group and weight increments. We continue to offer an 8 percent reduction with commercial base prices. We will expand commercial base price availability to include customers paying postage using IBI metering systems, and customers who use Click-N-Ship service, and registered end-users of PC Postage systems. These customers must electronically transmit Customs forms. Also, customers who pay postage by permit imprint and use authorized mail preparation software also will also continue to pay 8 percent below retail prices.
EMCA and permit imprint manifest mailing systems customers who also use USPS-provided Global Shipping Software (GSS) for mail preparation and Customs-related functions will continue to be eligible for prices 8, 10, or 12 percent lower than retail prices, depending upon annual volume or postage. A customer will receive commercial base prices during the first postal quarter of mailing. Thereafter, the incentive for each postal quarter is determined by the actual annualized volume or postage paid for Express Mail International items mailed in the previous full postal quarter. We will continue to offer additional volume pricing through customized agreements.
Express Mail International prices begin on page 26 of Notice 123, Price List.
The published price for Priority Mail International (PMI) will increase 8.5 percent. Price increases vary based on country group and weight increments. We continue to offer a 5 percent reduction with commercial base prices. We will expand commercial base price availability to include customers paying postage through using IBI metering systems, and customers who use Click-N-Ship service, and registered end-users of PC Postage systems. These customers must electronically transmit Customs forms. Also, customers who pay postage by permit imprint and use authorized mail preparation software also will continue to pay 5 percent below retail prices.
The new small flat-rate box will be available for international shipping, will be the same price and carry the same weight limit (4 pounds), and require the same Customs form (PS Form 2976, Customs Declaration CN 22) and content restrictions for each country as the PMI flat-rate envelope. Registered Mail™ service is available, but insurance is not available. The retail price for the small flat-rate box and the flat-rate envelope will be $10.95 for Canada or Mexico and $12.95 for all other countries, and is eligible for commercial base prices.
PMI prices can be found on page 27 of Notice 123, Price List.
International Direct Sacks, M-bags (Airmail M-bags), are direct sacks of printed matter and non-dutiable merchandise sent to one addressee with weight-based prices. Prices will increase 8 percent.
Airmail M-bag prices can be found on page 28 of the Notice 123, Price List.
We continue to offer Carrier Pickup™ service as a no fee service, and Pickup On Demand service continues to cost $14.75. Even though Premium Forwarding Service™ is used with Priority Mail service, the weekly shipment charge remains $11.95, and the enrollment fee remains $10. There are no changes to any permit or annual fees. However, Merchandise Return Service and Business Reply Mail items returned as Priority Mail items will be subject to new Priority Mail pricing January 18, 2009.
