New Postage Rates for 2018 – Some Go Up and Some Go Down

On Sunday, January 21^st, 2018 the United States Post Office (USPS) will be adjusting rates for both Market Dominated Products and Competitive Products. Market Dominated products are the products that the USPS does not have any competitors providing the same services such as First Class Mail, Periodicals, and Marketing Mail (Presort Standard Mail). Competitive products are services that the USPS has outside competitors vying for the same customers such as delivering packages (Parcel Services).

The overall average increase along all products lines is 2%.
Let’s start with Market Dominated price changes as those are the prices that effect most companies. The price of a first class stamp (forever stamp) is going to increase from 49 cents each to 50 cents each, so get out and purchase your forever stamps before January 21^st. Single piece metered rates are also going up 1 cent to 47 cents. The cost for each additional ounce over 1 is staying the same at 21 cents per ounce. One ounce single piece flat size mail pieces are going up 2 cents to $1.00 each and single piece postcards are also going up from 34 cents to 35 cents each.

Automated First Class postage is increasing slightly for most categories except for Mixed ADC Automated Flats which is receiving a decrease of 6% and 3-digit Automated Flats which is decreasing 5.9%. 5-Digit Automated Flats are going up by 6.3% to 47.4 cents each.

Marketing Mail (Presort Standard) is seeing that Marketing Mail letters are increasing in most categories with High Density DSCF rates heading up 2.38% and some nonprofit letter rates increasing by as much as 5%.


Every Door Direct Mail (EDDM) Retail rates are increasing by 56% to .178 cents per piece.
USPS Competitive products include package services and priority mail packages. Priority Mail, Priority Mail Express and Parcel Services are seeing some of the largest increases with First Class Mail Retail Parcels going up 14.5%.

For additional information on the January 2018 price changes view the USPS PowerPoint presentation.


                           

USPS™ Announces New Prices for 2018

The Postal Service™ filed notice with the Postal Regulatory Commission (PRC) today of price changes to take effect Jan. 21, 2018. The new prices, if approved, include a one-cent increase in the price of a First-Class Mail^® Forever^® stamp from 49 cents to 50 cents. Postcard stamps and metered letters would also have a one-cent increase.

The proposed prices would raise Mailing Services product prices approximately 1.9 percent, and most Shipping Services products will average a 3.9 percent price increase. While Mailing Services price increases are limited based on the Consumer Price Index (CPI), Shipping Services prices are adjusted strategically, according to market conditions and the need to maintain affordable services for customers.

The proposed Mailing Services price changes include:

Product	Current	Proposed
Letters (1 oz.)	49 cents	50 cents
Letters additional ounces	21 cents	21 cents
Letters (metered)	46 cents	47 cents
Outbound International Letters (1 oz.)	$1.15	$1.15
Domestic Postcards	34 cents	35 cents

The proposed domestic Priority Mail Flat Rate^® retail price changes are:

Product	Current	Proposed
Small Flat Rate Box	$7.15	$7.20
Medium Flat Rate Box	$13.60	$13.65
Large Flat Rate Box	$18.85	$18.90
APO/FPO Large Flat Rate Box	$17.35	$17.40
Regular Flat Rate Envelope	$6.65	$6.70
Legal Flat Rate Envelope	$6.95	$7.00
Padded Flat Rate Envelope	$7.20	$7.25

The PRC will review the prices before they are scheduled to take effect on Jan. 21, 2018. The complete Postal Service price filings with the new prices for all products can be found on the PRC site under the Daily Listings section at https://www.prc.gov/dockets/daily. For the Mailing Services filing, see Oct. 6, 2017, Docket No. R2018-1. For the Shipping Services filing, see Oct. 6, 2017, Docket No. CP2018-8.

UPS 2018 General Rate Increase

Great article from the Parcel Industry Magazine outlining the changes for the UPS December 24 price increase.  Here are a few highlights:

• The DIM weight divisor on small packages measuring less than one cubic foot will be decreasing from 166 to 139
• The minimum net charge for Ground packages will increase 3.42% to $7.57.
• The charge for an Address Correction will increase 18.7% to $15.90.
• There will be a secondary rate increase to certain charges that will take effect on July 8, 2018.

For complete details on this must-read article, click here

Karen Barry