(Direct Newsline)—A new rate case seeking a postage increase next year may be filed with the postal Board of Governors as early as this month, said Postmaster General John E. Potter during his keynote address at the National Postal Forum in Orlando, FL.

Sure, the 5.4% postage increase implemented in January could have been delayed one year, but it’s better to make smaller and more manageable rate increases to avoid “rate shock” with extremely large increases, according to the postmaster. He said another increase is necessary to offset increasing costs, particularly fuel expenses, which have risen by $1 billion annually.

The next increase is supposed to keep the post office at breakeven in 2008. The post office has plans to institute annual postage rate “changes” at or close to the inflation rate starting in 2009, as part of its “strategic transformation plan,” Potter said.

In other news, direct mail volume increased to record 212 billion pieces in 2005. Contrary to predictions that postal mail would be steep decline because of e-mail growth, direct mail is increasingly being used in tandem with Internet advertising, said the postmaster. For companies like eBay and Netflix direct mail has been an integral part of their success, he added.

A new four-state barcode for tracking mail will probably be rolled out by September. It will eliminate the need for separate barcodes for different postal services. Tests of the new barcode have proved successful, Potter told mailers.

A new rate case seeking a postage increase next year may be filed with the postal Board of Governors as early as this month, said Postmaster General John E. Potter during his keynote address at the National Postal Forum in Orlando, FL.

Sure, the 5.4% postage increase implemented in January could have been delayed one year, but it’s better to make smaller and more manageable rate increases to avoid “rate shock” with extremely large increases, according to the postmaster. He said another increase is necessary to offset increasing costs, particularly fuel expenses, which have risen by $1 billion annually.

The next increase is supposed to keep the post office at breakeven in 2008. The post office has plans to institute annual postage rate “changes” at or close to the inflation rate starting in 2009, as part of its “strategic transformation plan,” Potter said.

In other news, direct mail volume increased to record 212 billion pieces in 2005. Contrary to predictions that postal mail would be steep decline because of e-mail growth, direct mail is increasingly being used in tandem with Internet advertising, said the postmaster. For companies like eBay and Netflix direct mail has been an integral part of their success, he added.

A new four-state barcode for tracking mail will probably be rolled out by September. It will eliminate the need for separate barcodes for different postal services. Tests of the new barcode have proved successful, Potter told mailers.