The Postal Regulatory Commission approved this request in its entirety on November 13th.
The PRC said, “Rate increases for Market Dominant products must meet certain statutory and regulatory requirements, the most prominent of which is that such increases be no greater than the rate of inflation, as determined by the Consumer Price Index for All Urban Consumers. Conversely, the Postal Accountability and Enhancement Act requires, among other things, that rates for Competitive products must produce sufficient revenues to ensure they are not subsidized by Market Dominant products. The Commission found that the rates for both classes of mail meet all statutory requirements and may take effect, January 27, 2019, as planned.”
“No greater than the rate of inflation…” However, that is on average. The cost of mailing a one-ounce letter is going up 10%. The rate of inflation, October 2017 to October 2018, rose just 2.5%.
We can expect new Priority Mail and Express Mail stamps, as well as some definitives, on the date the new rates go into effect, January 27, 2019.
One major change proposed, however, is in First-Class Package Service—Retail: Right now, it’s a flat rate of $3.50 for up to four ounces. Under the October 10 proposal, the rate would range from $3.66 to $4.06 for up to four ounces, depending on distance. The service includes tracking.
To determine a domestic zone, use this tool on the USPS website. Choose the second tab, “Get Zone for ZIP Code Pair.”
[press release]
U.S. Postal Service Announces New Prices for 2019
WASHINGTON — The United States Postal Service filed notice with the Postal Regulatory Commission (PRC) today of price changes to take effect Jan. 27, 2019.
The proposed prices, approved by the Governors of the Postal Service, would raise Mailing Services product prices approximately 2.5 percent. Shipping Services price increases vary by product. For example, Priority Mail Express will increase 3.9 percent and Priority Mail will increase 5.9 percent. Although Mailing Services price increases are based on the Consumer Price Index (CPI), Shipping Services prices are primarily adjusted according to market conditions. The Governors believe these new rates will keep the Postal Service competitive while providing the agency with needed revenue.
If favorably reviewed by the PRC, the new prices will include a 5-cent increase in the price of a First-Class Mail Forever stamp, from 50 cents to 55 cents. The single-piece additional ounce price will be reduced to 15 cents, so a 2-ounce stamped letter, such as a typical wedding invitation, will cost less to mail, decreasing from 71 cents to 70 cents.
The proposed Mailing Services price changes include:
| Product Letters (1 oz.) Letters additional ounces Letters (metered 1 oz.) International Letters (1 oz.) Domestic Postcards |
Current 50¢ 21¢ 47¢ $1.15 35¢ |
Proposed 55¢ 15¢ 50¢ $1.15 35¢ |
The proposed domestic Priority Mail Retail Flat Rate price changes are:
| Product Small Flat Rate Box Small Flat Rate Box Large Flat Rate Box APO/FPO Large Flat Rate Box Regular Flat Rate Envelope Legal Flat Rate Envelope Padded Flat Rate Envelope |
Current $7.20 $13.65 $18.90 $17.40 $6.70 $7.00 $7.25 |
Proposed $7.90 $14.35 $19.95 $18.45 $7.35 $7.65 $8.00 |
First-Class Package Service, a lightweight expedited offering used primarily by businesses for fulfillment purposes, will move to zone-based pricing to better align with the cost of service and improve value based on distance.
The Postal Service has some of the lowest letter mail postage rates in the industrialized world and also continues to offer a great value in shipping. Unlike some other shippers, the Postal Service does not add surcharges for fuel, residential delivery, or regular Saturday or holiday season delivery.
The PRC will review the prices before they are scheduled to take effect Jan. 27, 2019. The complete Postal Service price filings with the new prices for all products can be found on the PRC site under the Daily Listings section at https://www.prc.gov/dockets/daily (see listing for Oct. 10). For the Mailing Services filing see Docket No. R2019-1. For the Shipping Services filing see Docket No. CP2019-3.The price change tables are also available on the Postal Service website at https://pe.usps.com/PriceChange/Index.
The Postal Service receives no tax dollars for operating expenses and relies on the sale of postage, products, and services to fund its operations.
More details on the proposed rate changes can be found here.
A USPS proposal to change First-Class Package Service in 2019 to a zone-based service could have profound impacts on stamp dealers selling on eBay and other web sites. Will the USPS continue to accept stamps for this service? While many stamp dealers continue to use Certified or Registered mail, First-Class package service provides an economical alternative with tracking acceptable to philatelic insurance providers.
Now, a First-Class Package with tracking can be mailed anywhere in the US for $3.50 retail. Stamps can be used. Negotiated rates are much lower, usually about $2.68. The extreme disparity between retail and negotiated rates opened in the last two years as rates were dramatically increased. Rates have nearly doubled in the last five years.
Published news reports tend to ignore First-Class Package service rates, leaving up to dealers to scramble in January to get information on new rates. If the structure of the service is changing, when will we find out?
Clark, check out the third paragraph, just added. However, the PRC may modify this proposal.
Some of these rates are already so high that they are killing people, such as some artists, who depend heavily on the USPS in their business. It is an utterly outrageous abuse that they propose to raise some of these still further. They are going to force people not to make it.