January 2013 Postal Prices for Mailers

As we told you in an earlier eTip, the United States Postal Service® (USPS®) proposed to the Postal Regulatory Commission (PRC) an average increase in mailing services prices of 2.5 percent. The First-Class Mail™ stamp will increase from the current 45 cents to 46 cents, with an overall increase of about 4 percent. The implementation date for the new prices will be January 27, 2013. The PRC has essentially approved the USPS proposals for all classes of mail EXCEPT Standard Mail Flats. The PRC remanded those rates back to the USPS, citing that the proposed rates did not provide adequate cost coverage for this mail. As a result, the USPS has submitted new proposed rates for Standard Mail Flats. The new increase for this mail is an average of 2.617 percent, which is higher than the average increase for the rest of Standard Mail (2.569 percent) and higher than the CPI-U price cap of 2.570 percent.

First-Class Mail

No changes in the proposed First-Class rates that we originally told you about in an earlier eTip. First-Class retail stamp increases by one penny, with remaining products increasing around 2.5 percent. The exceptions are Parcels, which increase by almost 5 percent and International, which increases by almost 8 percent.

Standard Mail

Standard Mail now increases overall by 2.569 percent, with higher percentage increases for Parcels and Carrier Route mail. Non-profit Standard Mail rate discounts remain consistent with current discounts off of the regular rates.

Periodicals Mail

Periodicals Mail will see an overall increase of 2.56 percent. Non-profit and Classroom Periodicals will continue to receive a 5 percent discount from regular rate postage, with the exception of the advertising pounds. Science of Agriculture rates likewise see consistent discounts from regular rates as in the current rates.

Package Services Mail

Package Services price increases are proposed at an overall 2.569 increase, with Parcels and Media and Library Mail seeing increases around 3.4 percent.

Shipping Services

Express Mail will increase overall by 5.8 percent, with the existing structure of zoned Retail, Commercial Base and Commercial Plus price categories maintained. Retail prices will increase an average of 6.5 percent, with Commercial Base prices increasing by 2 percent and Commercial Plus increasing by 1 percent. Express Mail International will see an overall 13.2 percent increase.

Priority Mail increases overall by 6.3 percent, with the existing structure of Retail, Commercial Base and Commercial Plus price categories maintained. Retail prices increase an average of 9 percent, while the Commercial Base prices increase an average of 3.7 percent and Commercial Plus prices by 3.8 percent. Priority Mail International will increase overall by 15.1 percent.

Parcel Select prices increase on average by 9 percent, with destination entered parcels at 8 percent for DDU entry, 4.9 percent for SCF entry, and 4.8 percent for NDC entry. Non-destination entered parcels see an average increase of 5.7 percent. Lightweight Parcel Select sees an increase of 9.8 percent; these were formerly known as Standard Mail commercial parcels. The Regional Ground category will be eliminated due to insufficient volume.

Parcel Return Service prices will increase overall by 4.8 percent.

First-Class Package Service prices will increase overall by 3 percent.

Parcel Post will be renamed Standard Post, and will increase an average of 21 percent.

Global Express Guaranteed will see price increases of 9.6 percent, while Priority Airmail increases by 1.9 percent and International Surface Airlift increases by 4.4 percent. Airmail M-bags increase by 7.3 percent, while First-Class Package International Service increases by a whopping 58.6 percent.

Additional Resources

You can check out the new price charts and draft postage statements on Postal Explorer or review the filing document on the Postal Regulatory Commission web site.

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