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As the largest business partner of the United States Postal Service, we are uniquely capable of helping you understand how upcoming changes to postal rates will affect your business. This site is dedicated to providing you with news and information related to the upcoming changes in USPS rates and tools for analysis by mail class.
On March 19, 2007, the United States Postal Service Board Of Governors (BOG) approved Postal Rate Case 2006-1 as revised and recommended by the Postal Regulatory Commission (PRC).
The new rates for all classes of mail will go into effect on May 14, 2007 with the exception of the Periodicals Class, which will go into effect on July 15, 2007. The delay of implementation for Periodicals is due to the complexity around new rates for containers. Whereas the USPS recommended one rate for all containers, the PRC revised the USPS submission to include 55 different container rates. The BOG provided clarity on the separate implementation date for periodicals, stating the additional time was required to 1) revise regulations communicating the new rate structure to mailers; 2) develop software incorporating the new rate structure into the Postal Service's administrative systems; and 3) allow development of appropriate Periodicals mail preparation software used by customers.
When implemented, the new rates will substantially increase the cost of Standard Mail, especially for lightweight catalogs with lower circulations that are not presorted and drop-shipped. The BOG acknowledged this fact, stating that they were "concerned that price increases recommended by the PRC may impose an unnecessary degree of 'rate shock' on the catalog industry, particularly small businesses. The BOG further concluded, "Postage for a small, but significant, minority of catalogs would increase by as much as 41 percent."
As a result, the BOG asked the PRC to reconsider their recommendation in the Standard Mail class, as well as for two other categories: 1) the Non-machinable surcharge for First-Class two- and three-ounce letters, and 2) the Priority Mail Flat-Rate Box. Because these three rate categories were designated "Allow Under Protest", the associated rates will go into effect on May 14th at the PRC-recommended specifications, while the PRC review process is underway. There is no specified timeframe for a decision from the PRC, although the BOG asked that the PRC "move as expeditiously as possible to give mailers a practical opportunity to plan effectively for future mailings."
Along with the punitive Standard Mail rates, there is a serious issue with the relatively short timeframe between the BOG ruling and the rate implementation dates. At the time of the PRC announcement, the mailing industry recognized the complexity in the implementation rules, and requested 90 days in order to revise and test their mailing software. As it currently stands, the actual schedule will only allow for a total of 55 days from the BOG ruling until all but the Periodical rates are implemented, and less than 120 days until the Periodical rates go into effect. The USPS has indicated that the implementation rules will be revised to match the PRC revisions to the original rate case 2006-1 submission.
Understanding the rate increase and updating procedures for mail preparation are among the first steps many of our customers will need to take in order to prepare for May 14, and/or July 15. At the same time, we're making it our priority to help you connect with the right RR Donnelley service to help your company mitigate (to the degree possible) the financial impact that the increase will have on your business.
Click here to access Postal rate calculators for Non-profit Standard Mail Flats and Letter mail, Regular Standard Mail Flats and Letter mail and Bound Printed Matter Parcels and Flats.
Call your RR Donnelley representative to request a rate analysis for Periodical Class mail.
For more information contact Postal.Affairs@rrd.com.
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