Mailing Service Price Change

Prices for most Postal Service mailing services will change on January 22, 2012. Mailing services includes First-Class Mail, Standard Mail, Periodicals, Package Services and Extra Services. Prices [Link] for shipping services will also change on January 22. The USPS will provide customers the new shipping services prices later this fall. While actual percentage price increases for various products and services varies, the overall average price increase across all mailing services is capped by law at 2.1 percent, the rate of inflation as measured by the Consumer Price Index.

PERCENTAGE OF PRICE CHANGE BY CLASS OF MAIL:

• First-Class Mail 2.133%
• Standard Mail 2.124%
• Periodicals 2.133%
• Package Services 2.133%
• Extra Services -0.663%*

GAO weighs in on Postal Service's financial health

The U.S. Postal Service's prefunding for retiree health benefits should either be eliminated or restructured, and compensation and benefits for employees should either follow private or public sector standards, but not a hybrid of both, the Government Accountability Office said in a report. The report detailed recommendations for fixing USPS' financial woes, for three different business models -- a fully subsidized government agency; the current structure, but with increased flexibility; or an entirely private sector entity. While GAO provided recommendations for each scenario, it did not endorse one specific model. Reports in April 2010 and February 2011 found similar results, and recommended USPS restructure its networks and workforce in order to continue operations. All three scenarios that GAO considered would require USPS to adapt to lower mail volume and the watchdog recommended revising the policy of universal service. While a continuing resolution will keep USPS running until November 18th, lawmakers have introduced several bills to get the agency back on sounder financial footing, with solutions ranging from forgoing Saturday mail delivery to eliminating the practice of prefunding retiree health benefits.

Source: Government Executive

Periodicals Community Concerned Over PRC Report

The long-awaited study on periodicals mail service shortfalls from the Postal Regulatory Commission (PRC) and the USPS itself said postage rates currently cover only 75.5% of periodical mailing costs. The study, based on 2010 figures, saw the PRC suggesting that at best, the Postal Service would be able to save $349m a year by improving its service efficiencies. USPS put the efficiency saving potential at just $146m. One major issue found in the report is that too much manual sorting is going on. Partly this is because of the range of shapes, sizes and materials of America’s 26,000 different newspapers and magazines. Other reasons included publishers getting their new editions late to their local delivery offices, after machines are shut down. But although USPS and PRC have assembled a strategy to reduce operational costs and increase automation, the report said this effort will not entirely close the shortfall. Under US postal law, mail services are supposed to cover all of their costs. Last year saw the PRC refraining from ordering a major rate rise in order to leave time for USPS to improve its service efficiency.

Source: Post & Parcel