Postal Rate Increase 2007 Resource Center

    The new USPS Rate Change that goes into effect on May 14, 2007 presents many challenges for shippers and mailers because it’s introducing dozens of rule and classification changes. With Window Book’s Smart Postal Solutions software, shippers and mailers can be confident that they will be ready with these changes in advance of the implementation date.

    We have posted Beta Updates on our website for Post Master and DAT-MAIL. The updates are ready for immediate download from Software Updates  An E-Mail Notification will go out to all Postal Package Partner Users as soon as the update is available.

    Since both new and old rates are maintained in all of our products, we encourage all of our customers to update their programs in advance. When creating packages or statements, the rates are determined by the Mailing Date. If you choose a date prior to May 14th, your program will give you current rates and if you select a date on or after May 14^th, you get the new rates.

    We are dedicated to using Window Book's many years of industry expertise in increasing the efficiency of your Mailing & Shipping Operations. If you have any suggestions on features that you would like to see implemented in a future version of any of our products, please let me know by clicking on Suggestions or E-Mailing me at ttabor@windowbook.com

Sincerely,
    Teresa Tabor
    Product Manager

     The overall theme in the new USPS price structure is that Shape Matters, putting more emphasis on mail shape than on weight. USPS analyzed their Operations and concluded that all mail doesn’t cost the same to process. The goal in the new price structure is to create a more efficient mail system by encouraging customers to design their mail to go through its automation equipment, resulting in reduced costs for everyone.

Please find below a summary of changes for each Class of Mail:

    The shape of mail will play a major role when mailing First Class items. In the current rate structure, the cost to mail a 1 oz. Letter, Flat and Parcel is the same. In the new rate structure, it will cost 41 cents to mail a 1 oz. Letter, 80 cents to mail a 1 oz. Flat and $1.13 to mail a 1 ounce Parcel.

    Deeper incentives are given to automation mail. The weight limit for automation letters increases to 3.5 ounces. The additional oz. rate decreases from 23.7 cents to 12.5 cents for letters and decreases from 23.7 cents to 17 cents for Pre-Sorted Letter, Flats and Parcels.

    In addition, USPS will encourage customers to presort their First Class Parcels by introducing a new pre-sorted parcel category that didn’t previously exist. This category will add the ability to mail to 5-Digit, 3-Digit and ADC Sacks. To facilitate more efficient handling of parcels, a 5 cent surcharge will apply to these pieces if they are not barcoded.

    The experimental Priority Flat Rate Box will now be a permanent offering, which is a flat fee of $8.95 regardless of weight or zone.

    In order to reflect actual processing costs, USPS will be implementing Dimensional Weight for large lightweight items, where the size of the package will determine the postage cost. If an item is greater than 1 cubic foot and in zones 5-8, the postage will be calculated at the Dimensional Weight.

    In order to provide better value to mailers mailing lightweight documents, USPS is offering a new 1 lb. Rate, which fills the gap between the current ½ lb and 2 lb. rates.

    As with First Class, Standard Mail’s new pricing structure has more emphasis on shape. Standard Mail pieces not compatible with USPS’s Automation Equipment will be priced higher. One of the biggest changes is with Parcels: The Residual-Shape Surcharge is being replaced by separate rate categories for Irregular Parcels, Machinable Parcels and the new Not-Flat Machinable Pieces. The Not-Flat Machinable Category was created for mailpieces that are too thick or rigid to run on USPS’s Flat Automation machines. These pieces previously qualified for Automation Flats, but handled as parcels. This new category will have higher prices than flats, but lower prices than machinable and non-machinable parcels.

    In addition to encouraging customers to put more emphasis on the shape of their mail, USPS will give incentives for drop shipping mail closer to its destination by providing lower prices for DBMC (Destination Bulk Mail Center) and DSCF (Destination Sectional Center Facility) mail. The DDU (Destination Delivery Unit) Rate for ECR (Enhanced Carrier Route) Letters will be discontinued as previously ECR Letters at the DDU resulted in the mail being sent to the plant for Delivery Point Processing and then transporting them back to the Delivery Unit.

    In order to increase consistency, the maximum size of ECR Flats was increased to 15 inches long by 12 inches high, with a maximum thickness of ¾” so that the same maximum size applies to all Flats regardless of rate paid.

    A 1.5 cent surcharge will be added for Detached Address Labels (DALs) as they cost more to process. Addressed mailpieces are more compatible with USPS’s Automation Equipment.

    There are major changes to International Mail. In order to make International Mailing easier to use, retail offerings have been streamlined into four products that match domestic options: First Class Mail International, Priority Mail International, Global Express International, and Global Express Guaranteed.

    Mailers will also be able to use the same USPS Provided Priority Mail and Express Mail packaging that they use for Domestic Mailing. This includes the popular Flat Rate Envelope and Box Options, which will give customers the ability to pay one rate to almost any country.

    Delivery Confirmation will now be available for Global Priority International going to major destinations.

Useful Links and More Information

WindwBook Home

New Rate Case Information

Frequently Asked Questions

Domestic Mail Manual

New Domestic Rates and Fees

New International Rates and Fees

MailPro - USPS bi-monthly Newsletter