Highlights of Changes — Domestic and International Shipping Services
On November 22, 2011, the Postal Service™ announced new prices and product features for domestic and international Shipping Services, effective January 22, 2012. We 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 2012:
n Express Mail®.
n Priority Mail®.
n First-Class Package Service™.
n Parcel Select®.
n Parcel Return Service.
n Other competitive products.
n Global Express Guaranteed® (GXG®).
n Express Mail International®.
n Priority Mail International®.
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 3.4 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 third year in a row. No other fuel surcharges, Saturday delivery, or residential delivery charges apply. A new Express Mail Flat Rate Box in two configurations has been added. Express Mail prices can be found on Postal Explorer® at http://pe.usps.com.
Express Mail Retail Prices
Retail prices increase on average 4.4 percent. Other than the Flat Rate Envelope and Flat Rate Box, retail prices continue to be based on distance (zone) and weight. Express Mail retail prices begin at $12.95, which is $0.30 lower than the current price. Express Mail Flat Rate Envelope retail prices increase to $18.95.
Express Mail Commercial Base Prices
Commercial base prices will actually decrease on average 3.9 percent in January 2012. The Express Mail Flat Rate Envelope and Legal Flat Rate Envelope will be priced at $17.75. The new Express Mail Flat Rate Box is available to commercial base customers at a price of $39.95.
Express Mail Commercial Plus Prices
Commercial plus prices have no overall increase, although some prices are going up and some are going down. The Express Mail Flat Rate Envelope will remain priced at $12.72. The new Express Mail Flat Rate Box is available to commercial plus customers at a price of $39.95.
Priority Mail
On average, Priority Mail prices increase by 3.1 percent. All Flat Rate Envelopes measuring 12½" x 9½" 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 $5.15, while the Priority Mail Padded Flat Rate Envelope and Priority Mail Legal Flat Rate Envelope will be priced at $5.30.
Priority Mail Retail Prices
Retail prices increase an average of 3.2 percent. Other than Flat Rate priced items, Priority Mail retail prices, starting at $5.15, 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 retail prices.
Priority Mail Commercial Base Prices
Commercial base prices increase an average 3.0 percent and are on average 6.8 percent lower than retail prices. All Flat Rate Envelopes measuring 12½" x 9½" 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 $4.90, while the Priority Mail Padded Flat Rate Envelope and Priority Mail Legal Flat Rate Envelope are priced at $5.10. Flat Rate Box prices start at $5.15.
1 Includes all Flat Rate Envelopes 12½" x 9½" or smaller, including the Priority Mail Gift Card Flat Rate Envelope, Priority Mail Small Flat Rate Envelope, and Priority Mail Window Flat Rate Envelope.
2 Packaging for the USPS-produced Priority Mail Padded Flat Rate Envelope and Legal Flat Rate Envelope is not available at retail but may be ordered online at www.usps.com/shop.
Regional Rate Box
Priority Mail Regional Rate Boxes are available for Priority Mail commercial parcels and Merchandise Return Service (MRS) parcels returned at Priority Mail prices. Mailers must use USPS®-produced Regional Rate Boxes to qualify for Regional Rate prices. A new option for customers sending small, dense packages is Regional Rate Box C. Box C has a 25-pound maximum weight limit with prices starting at $14.44. If Regional Rate Boxes are deposited at retail Post Office locations, the price is an additional 75 cents higher than the commercial base price.
Priority Mail Commercial Plus Prices
Commercial plus prices on average are 12.5 percent lower than retail prices and prices start at $4.39.
Priority Mail Commercial Plus Cubic Pricing
The account volume threshold for commercial plus cubic pricing is being lowered from 250,000 Priority Mail pieces to 150,000 pieces for the previous calendar year. A simplified cubic measurement for soft packaging is available. To calculate the cubic price for soft packs and padded envelopes, measure the length and width separately and round each measurement down to the nearest ¼ inch. Add the two together. The total length plus width cannot exceed 36 inches. The total (in inches) will correlate to a specific pricing tier.
Priority Mail Open and Distribute
Priority Mail Open and Distribute (PMOD) provides alternatives for mailers who want to expedite mailings of other classes of mail to destination postal facilities. In addition to current PMOD tray box options (half tray box, full tray box, and extended managed mail tray box), the Postal Service introduces a new flat tub tray box beginning in January. Also in January, tray boxes for PMOD will only be available to commercial plus customers.
Parcel Select
On average, Parcel Select prices will increase by 8.5 percent. Parcel Select is a commercial ground shipping product.
The average price increase for Parcel Select is:
* Formerly Barcoded Nonpresort
Regional Ground pricing for parcels traveling longer distances (zones 4–8) is being eliminated. Another change is that the current Parcel Select Barcoded Nonpresorted category is renamed Parcel Select Nonpresort because all Parcel Select mailpieces will be required to bear barcodes effective January 22.
Parcel Select Lightweight, which replaces Standard Mail commercial parcels that were part of the Mailing Services product list, is for parcels that weigh less than a pound and are used for order fulfillment. The pricing structure will more closely resemble that of Standard Mail® parcels than that currently applied to the other price categories of Parcel Select. The new format has weight increments ranging from 1 ounce to 16 ounces and pays prices based on sortation level and where the parcel is entered for mailing — DDU, DSCF, or DNDC. In January, the prices increase on average 8.9 percent.
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. Parcel Return Service is expanding to include Return Sectional Center Facility (RSCF) pricing, offering customers greater flexibility in retrieving their parcels.
On average, Parcel Return Service prices increase 4.6 percent as follows:
n Return network distribution center (RNDC): no change.
n Return delivery unit (RDU): 8.9 percent.
Other Competitive Offerings
Competitive PO Boxes
The 49 Post Office Box™ locations that were moved to the competitive side on June 17, 2010, will be joined by 6,800 additional PO Box™ locations on January 22, 2012. The 3-month pricing option with auto-renewal on a credit card, previously mentioned in the Mailing Services price change, also applies to these PO Boxes. The 3-month option is available in all five box sizes and all seven fee groups but is not available for Caller Service or Reserve Number fees.
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. The average price increases 3.0 percent. The enrollment fee remains at $15.00 while the weekly fee increases to $15.25. An online application for Premium Forwarding Service will be available (to residential delivery customers only) at www.usps.com/premiumforwarding.
Address Enhancement Services
Prices for Address Information System products, which are listed under the competitive products category as Address Enhancement Services, are increasing on average 7.3 percent.
Package Intercept Service
Package Intercept is a new domestic service that replaces the current recall of mail service. Package Intercept is not available for packages addressed to international and APO/FPO/DPO destinations or on mailpieces requiring a customs label. Customers wishing to use Package Intercept initiate the process by paying a per-piece $10.95 fee. Package Intercept requests are active for 10 days. The Postal Service does not guarantee the interception of a mailpiece.
Package Intercept can be used for any mailable Express Mail, Priority Mail, First-Class Mail, First-Class Package Service, Parcel Select, and Package Services letter, flat, or parcel with a tracking barcode. Parcels may not measure more than 108 inches in length and girth combined. Package Intercept is not available for any mailpiece that indicates surface-only transportation such as Label 127, Surface Mail Only, or bears other hazardous materials markings such as “Consumer Commodity ORM-D”.
In addition to the fee to initiate the interception, all mailpieces that are redirected to a new address, to a Post Office as Hold For Pickup, or to the sender may be subject to payment of additional postage to the new destination as applicable. Postage will be charged based on how the piece was originally mailed and will be collected as postage due.
Package Intercept service will be implemented in three phases:
n In Phase One, effective January 22, 2012, Package Intercept will only be available by submitting PS Form 1509, Application for Package Intercept, at the Post Office of mailing. Redirect to sender will be the only redirection option available.
n Phase Two, scheduled for April 2012, will introduce an online application for commercial customers. The redirection options for commercial customers will be expanded to include redirect to a new address and to a Post Office as Hold For Pickup.
n Phase Three, scheduled for June 2012, will introduce an online application for retail customers. The redirection options for retail customers will also be expanded at that time to include redirect to a new address and to a Post Office as Hold For Pickup. As a result of the June 2012 phase, PS Form 1509 will then be retired.
The Package Intercept fee in effect January 22, 2012, will remain the same throughout the three implementation phases.
Summary of International Changes
Published prices for the retail international Shipping Services — Global Express Guaranteed (GXG), Express Mail International, Priority Mail International, and Airmail M-Bags —increase an average of 9.3 percent. Prices for the commercial international Shipping Services (International Priority Airmail (IPA) and International Surface Air Lift (ISAL)) increase an average of 6.9 percent.
Global Express Guaranteed
GXG is a date-certain, expedited delivery service to over 190 countries through a strategic alliance with FedEx Express. Retail prices start at $44.00.
On average, GXG prices will increase 6 percent. Commercial base pricing will continue to be available for customers who prepare and pay for shipments online at USPS.com® or by using an authorized PC Postage® vendor. The discount offered for commercial base pricing changes from an across-the-board 10 percent lower than retail to a variable discount of up to 10 percent.
New for GXG will be the introduction of commercial plus pricing for large volume customers. Qualifying customers who tender at least $100,000 in annual postal revenue from international expedited products (GXG, Express Mail International, and/or Priority Mail International) may be eligible to receive commercial plus pricing at a variable discount of up to 17 percent.
Shippers who meet revenue thresholds and commit to revenue increases can now include GXG service in customized Global Expedited Package Services (GEPS) contracts.
Also new for GXG is a legal-size GXG envelope.
Express Mail International
Express Mail International provides high-speed service to approximately 190 countries, with a money-back delivery guarantee to select countries. On average, Express Mail International prices will increase 11.6 percent. The commercial base price for customers who prepare and pay for shipments via permit used in conjunction with Global Shipping Software (GSS), online at USPS.com, or by using an authorized PC Postage vendor will be up to 8 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 $29.95. The changes to Express Mail International include the following:
n The addition of a Flat Rate Box. Available in two versions with the same cubic measurement (1/3 cubic foot), it has a 20-pound maximum weight limit and is priced at $59.95 to Canada and $74.95 to all other countries that accept Express Mail International.
n The addition of commercial plus prices. Qualifying customers must tender at least $100,000 per year of international expedited products. Required postage payment options for commercial plus pricing are permit imprint and an option for registered end-users using an authorized PC Postage vendor. The discount applies only to the postage portion of the Express Mail International price.
Priority Mail International
On average, Priority Mail International prices will increase 8.7 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 using an authorized PC Postage vendor will be up to 5 percent below the retail price. The discount applies only to the postage portion of the Priority Mail International price. The change to Priority Mail International is as follows:
n The addition of commercial plus prices. Qualifying customers must tender at least $100,000 per year of international expedited products. Required postage payment options for commercial plus pricing are permit imprint and an option for registered end-users using an authorized PC Postage vendor. 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 10 percent below the retail price. The discount applies only to the postage portion of the Priority Mail International price.
1 One of the two USPS-produced Express Mail International Flat Rate Boxes (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 at retail when payment is made using a permit imprint or online postage.
2 Priority Mail International Flat Rate Envelopes are no smaller than 5 x 10 inches and no larger than 9½ x 15 inches, as defined in the IMM. Four-pound weight limit.
3 Priority Mail International Small Flat Rate Boxes are various sizes, as defined in the IMM, not to exceed 1/20 cu. ft. Four-pound weight limit.
4 Priority Mail International Medium Flat Rate Boxes are various sizes, as defined in the IMM, not to exceed 1/3 cu. ft. Twenty-pound weight limit.
5 Priority Mail International Large Flat Rate Boxes are various sizes, as defined in the IMM, not to exceed 1/2 cu. ft. Twenty-pound weight limit.
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 22, 2012. 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 “Jan. 22, 2012 Price Change Info,” click your desired file. Customers may also download and print the price tables.
District Coordinators List
— Product Classification,
Pricing, 12-15-11
