USPS Hikes Rates 3.6 Percent

The U.S. Postal Service announced a 3.6 percent overall price increase for all shipping services starting in January.

The rate hike comes in well under the 4.9 percent increase both UPS and FedEx announced for 2011. Any recommended price increase for the Postal Service must first be approved by the Postal Regulatory Commission.

USPS is struggling to overcome an estimated loss of about $6 billion in its 2010 fiscal year, which ended Sept. 30, as large mandated pension fund payments still loom.

In addition to an overall price change of 3.5 percent for priority mail, new prices for express mail, global express guaranteed, express mail international, priority mail international, parcel select and parcel return service will be effective Jan. 2, USPS said.

New flat-rate shipping innovations debut in January, as well, with priority mail padded envelopes starting at $4.95 and a new express mail legal flat rate envelope (15" x 9.5") making its debut at $18.30.

Pricing adjustments to competitive products are made each January. A plan outlining a balanced approach for the long-term viability of the Postal Service introduced on March 2 includes proposals to deliver mail five days a week rather than six, restructure prefunding requirements for future retiree health benefits, create a more flexible workforce, expand convenient customer access to products and services and drive inefficiencies out of the mail system, USPS said.
(Source:www.joc.com)