USPS Shipping Rate Increase Goes Into Effect January 17, 2016

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By Paul Johnson, President Complete Mailing Solutions

The USPS will increase rates on their shipping services, including First-Class Package and Priority Mail rates, which will go into effect Sunday, January 17, 2016. The increase does not impact First Class Mail letter rates.

The average shipping service price increase is 9.5%, while Priority Mail specifically will experience a 9.8% increase. Priority Mail Express products will see the highest rate increase of 15.6%.
Other changes to note:

• The USPS will offer a 10:30 am Priority Mail Express delivery request for a $5 fee.
• The maximum weight for First Class Parcel Service will increase from 13 ozs. to 15.999 ozs. Presort discounts have been eliminated. An IMpB label is required on these packages or a 20¢ surcharge will be incurred.
• The Priority Mail Express flat rate box has been eliminated.
• Parcel Select® Nonpresort will be renamed “Parcel Select Ground™”
• Standard Post® will be renamed “Retail Ground™. Mailing requirements will remain unchanged.

The following is an overview of the pricing change:

Service 2015 Rate 2016 Rate
Priority Mail (Retail) $5.75 $6.45
Priority Mail (Commercial Base) $5.05 $5.75
Priority Mail Express (Retail) $19.99 $22.95
Priority Mail Express (Commercial Base) $18.11 $20.66

Also of note is that the USPS is significantly increasing Commercial Plus rates (discounts to highest volume users) to align them more closely with Commercial Base Pricing (discounts to users of authorized postage payment methods). The USPS has stated their long term goal is to eliminate Commercial Plus Pricing and consolidate to only one set of commercial discounted rates sometime in 2017.

In spite of this increase, mail machine users will continue to enjoy lower mailing rates versus over-the-counter retail rates. However, each USPS rate change has a significant impact on your mail that can be costly if not implemented correctly.

Contact CMS immediately to discuss what you can do to offset these increases and improve deliverability of your mail at a lower rate.

Remember, rates change Jan 17th!!!
The Postal Service will observe the Martin Luther King Jr Birthday on Monday Jan 18th; find all USPS Holidays here