What USPS’s Rate Increase Means to Commercial Shippers

Nov 19, 2013 12:42 PM  By

Parcel Select Lightweight

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Package Return Services

  • Average increase 3%
  • It is notable that there is a significantly higher increase for retrieving packages deeper into the package stream.
    • RNDC, RSCF and Full Network + 0%
    • RDU +5.7%
  • Remains the best value for under 1 LB
  • No change for CPP pricing, primarily used for 14, 15 and 16 ounce parcels
  • Base pricing increase on average 4.7% but only 1.5% for the more common weights

First Class Package Services – Parcels

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International

  • GXG Average + 3%
  • PMEI (Priority Mail Express) + 1.3%
  • PMI (Priority Mail International) + 1%
    • Both PMEI and PMI offering new Flat Rate options
  • IPA (International Parcel Airmail)  – 2.5%
  • ISAL (International Surface Air-Lift) – 2.9%
  • IPA and ISAL notables:
    • Direct Country min reduced to 2 Lbs
    • Flats min weight reduced to 17.6 oz
    • Package min weight increased to 4.4 Lbs
    • 19 rate groups – Shape Based Pricing
  • Airmail M-Bags + 2.9%
  • FCPIS (First Class Package International Service)
    • Retail + .8%
    • No Change for Base of Plus

Commercial Shippers who are smart enough to use the USPS should feel good with their decision as their savings will increase next year compared with the alternatives.  Savvy Transportation Directors will continue to explore the many options to reduce their parcel spend while improving the customer experience.

Gordon Glazer, CMDSM, CMDSS, MDP, MDC is Director, Modal Optimization Strategies at Shipware LLC. He can be reached at 858-879-2020 Ext 108 or gordon@shipware.com.

  • Joe Ralstin

    Great article! Being a private consolidator, I agree with the “look around for options” mentality. There are other options in your area, you just have to find them or have them find you. http://www.c3ps.us

  • marc zazeela

    Indeed, Joe Ralstin. Instead of complaining, get creative and find a better way.