The U.S. Postal Service wants to raise standard mail rates by an average of 9% and all rates by approximately 7.1%, and will ask for those hikes in a filing with the Postal Rate Commission later today.
Specifically, the USPS is proposing to raise the first class rate by 7.1%; Priority Mail by 13.8%; Express Mail by 12.5%; package services by 13.4% and special services by 11.2%.
“The postal service is asking for all the real increases they’ve been looking for since 2002,” said Gene Del Poilito, president of the Association for Postal Commerce. “When they all finally take effect in 2007, they will be way ahead of the rate of inflation. Wasn’t the purpose of postal reform to keep postal rates within the rate of inflation?”
The USPS proposal, outlined in a press conference on Wednesday, also creates an adjustable rate system by giving mailers the opportunity to obtain lower rates as they find ways to configure their mail into shapes that cut processing costs for the postal service.
For example, if the contents of a first class flat can be folded and placed in a letter-size envelope, the mailer can reduce the postage by as much as 20 cents per piece. If a first class parcel can be configured as a flat, the mailer will save 36 cents.
Since the USPS emphasizes shape in its pricing, it also wants to lower the additional ounce rate. As mail pieces become heavier, the proposed price increase declines. For letters over 1 ounce, the new prices are actually lower than current ones.
