POSTAL RATES

THIS IS THE WAY THEY FIGURE YOUR RATES

Rate Change Information

On May 14th 2007, new postal rates and classifications will take effect as the US Postal Service implements its R2006-1 rate case.

Overview
On the surface, the rate change is relatively straight forward: the 1oz First-Class Mail letter stamp goes up by 2 cents to $0.41, and individual mail class rates increase on average by under 10% for letters and 12-18% for packages as shown below:

 
Mail Subclass/Type Rate Increase
Priority Mail 13.6%
First-Class Mail Letters 6.9%
Media/Library Mail 17.8%
Express Mail 12.5%
Standard Mail 9.5%

However, for the package shipper, the detailed picture is a little more complicated. In general, postal rates have become more shape-based. As shown below, based on the shape and mail class used, the rate increases can be quite substantial:

 
Mail Subclass/Type Rate Increase
Priority Mail 1-5lb 2% to 24%
Priority Mail 1lb (oversized, 600 miles) 422% to 711%
First-Class Mail Flats -13% to 54%
First-Class Mail Parcels w/ DC -2% to 98%
Media Mail 1-5lb w/ DC 0% to 33%

The highlights of the domestic rate changes are:
 
  • Priority Mail now has a dimensional weight for parcels that are over 1 cubic foot in volume and shipped to zones 5-8 (over 600 miles). Except for oversize parcels, the rate change for most low-weight packages shipped to zones 5-8 is in the range of 13-24%, whereas those shipped to zones 1-4 increase much less and in some cases decrease.
  • First-Class Mail is now rated based on whether it is a letter, flat, or a parcel; with parcels being the most expensive, and lower weights increasing more than higher weights. For letters and flats, higher weight postal rates actually decrease.
  • Media Mail rates are increasing by up to 33%; with the steepest increases in the low-weight packages. Rates for higher weight parcels actually decrease.
International Mail is also undergoing a big makeover to make it easier to use:
 
  • The old 8 classes of International Mail will be consolidated into 4 classes aligned with the domestic classes: Global Express Guaranteed, Express Mail International, Priority Mail International, and First Class Mail International.
  • The USPS-provided packaging for Priority Mail and Express Mail, including flat rate envelopes and boxes, will also be used for the International version of these classes.
  • .

More Information

Although the rates are increasing, the USPS will maintain its price advantage over private carriers in most cases. By some estimates, less than 3% of Priority Mail packages will be subject to the dimensional weight; First Class Mail parcels are still priced far less than the minimum 1lb rate of private carriers; and the discounts and flat rate options for International Mail will create more savings .

Please take a few moments to go through the following summaries of changes, so that you can assess their impact and take steps to manage your costs going forward:
 
USPS Resources

Priority Mail

Although the Priority Mail rate change is mostly straight forward, a new dimensional weight has been introduced for parcels larger than a cubic foot in volume going to zones 5-8 (over 600 miles). This is in addition to the balloon rate that applies to parcels more than 84 inches in girth going to zones 1-4 (under 600 miles).  Rate Change Summary
Except for oversize parcels, the rate change for most low-weight Priority Mail packages shipped to zones 5-8 is in the range of 13-24%, whereas those shipped to zones 1-4 increase much less and in some cases decrease.

 
Weight ≤ Zone 1,2 Zone 5 Zone 8
1lb 13.6% 13.6% 13.6%
2lb 9.5% 20.4% 24.0%
3lb 1.0% 14.6% 17.2%
4lb 1.8% 20.0% 23.4%
5lb 2.4% 21.4% 23.8%
10lb -4.0% 23.7% 23.7%

Shape-Based Pricing
Unless you've been using flat rate packaging, you've always had to know how much your package weighed. With the changeover to the new rate structure on May 14th, you'll also need to pay more attention to how big your box is. 

If you ship a lot of large lightweight parcels, you may already be familiar with Balloon Rates, which will apply to parcels shipped to zones 1-4 (under 600 miles). In addition, the USPS will now use a Dimensional Weight, which will apply to zones 5-8 (over 600 miles). Here are the rules and calculations for the various larger parcel rates:

 
  • Balloon Rates for Zones 1-4. Parcels addressed for delivery in Zones 1-4 (including Local) that weigh less than 20 pounds – but measure more than 84 inches (and not more than 108 inches) in combined length and girth (where girth is the measurement all the way around the thickest part of the parcel) – are charged the applicable zone rate for a 20-pound parcel (balloon rate).

     
  • Dimensional Weights for Zones 5-8. Parcels addressed for delivery in Zones 5-8 that measure more than 1 cubic foot in volume will be charged the higher of their actual weight and a dimensional weight. The dimensional weight is the volume of the parcel divided by 194 and rounded up.

    • Rectangular Shaped Example. For the box illustrated below, compute the dimensional weight as follows:
      1. Measure the length, width, and height in inches. Round off each measurement to the nearest whole inch: (length = 21, height = 20, and width = 20).
      2. Multiply length x height x width: (21 x 20 x 20) = 8,400 cubic inches.
      3. If the result exceeds 1,728 cubic inches, divide the result by 194 and round up (i.e. round to the next highest whole number) to determine dimensional weight in pounds: (8,400/194 = 43.29) 43.29 rounded up to the next pound is 44.
      4. The rate is based on the actual weight or dimensional weight, whichever is greater.

      In the example above, the dimensional weight for this rectangular package to zones 5-8 is 44 pounds.

    • Non-Rectangular Shaped Example. For the case illustrated below, compute the dimensional weight as follows:
      1. Measure the length, width, and height in inches at their extreme dimensions. Round off each measurement to the nearest whole inch: (length = 30, height = 9, and width = 18).
      2. Multiply length x height x width: (30 x 9 x 18) = 4,860 cubic inches.
      3. Multiply the result by an adjustment factor of 0.785: 4,860 x 0.785 = 3,815.1 cubic inches.
      4. If the final result exceeds 1,728 cubic inches, divide the result by 194 and round up to the next whole number to determine the dimensional weight in pounds: (3,815.1/194 = 19.66) 19.66 rounded up to the next pound is 20.
      5. The rate is based on the actual weight or dimensional weight, whichever is greater.
      6. If the dimensional weight exceeds 70 pounds, the package pays the 70 pound rate.

      In the example above, the dimensional weight for this non-rectangular package to zones 5-8 is 20 pounds.

Why Did The USPS Make These Changes?
The most important factor in the cost to ship an item via air is not the weight of the item so much as the amount of space that item takes up in the plane. By setting costs based only on weight, the USPS has been undercharging for many larger lightweight packages and overcharging for many smaller heavy packages. This rate change for packages shipping via air (zones 5-8) is an attempt to more adequately and fairly cover the actual cost of shipping.

Priority Mail Still Maintains Price Advantage
Despite the rate increases, Priority Mail still maintains its advantage for low-weight packages when compared with private carrier ground rates, as illustrated below:

 
Example:
1lb Package
Carrier
Ground
Priority
Mail
Base Rate (zone averaged) $4.40 $4.60
Residential Surcharge $1.85 $0.00
Rural Surcharge $2.20 $0.00
Fuel Surcharge $0.30 $0.00
Subtotal $8.75 $4.60
Bad Address Charge $5.00 $0.00
Total $13.75 $4.60

Although the private carrier rates may look attractive at first glance, it becomes clear that Priority Mail can be far less expensive to use when you consider all the surcharges private carriers add to their base rates.
 

International Mail

International Mail is undergoing a big makeover to make it easier to use with the old 8 mail classes getting consolidated into 4 classes aligned with the domestic versions. The USPS-provided packaging for Priority Mail and Express Mail, including flat rate envelopes and boxes, will also be used for the International version of these classes.

Simplified Structure
The following chart shows how the International Mail classes will be simplified. If you look at the classes you're using today, you'll see the corresponding new class as of Monday, May 14th.

 

Here's a breakdown of the features of the new classes:
  1. Global Express Guaranteed
    • Delivery in 1-3 days.
    • Track and trace capabilities.
    • Money-back delivery guarantee.*
    • Insurance included for the first $100 dollars in value. Insurance for higher values can be purchased with Endicia Insurance.
    • Online discount with stealth postage 10% (planned for a future release - not currently available through Endicia).
      _________________________
      * Some restrictions apply – refer to terms and conditions on the back of mailing label for details.

       
  2. Express Mail International
    • Delivery in 3-5 days.
    • Tracking to major destinations.
    • Service guarantee to Australia, China, Hong Kong, South Korea, and Japan.
    • Insurance included for the first $100 dollars in value. Insurance for higher values can be purchased with Endicia Insurance.
    • Flat-rate envelope ($22 to Canada and Mexico, $25 to all other countries).
    • Online discount with stealth postage 8%.

       
  3. Priority Mail International
    • Delivery in 6-10 days.
    • Tracking to major destinations.
    • Insurance available.
    • Flat-rate envelopes for letters ($9 to Canada and Mexico, $11 to all other countries) and flat-rate boxes for parcels ($23 to Canada and Mexico, $37 to all other countries).
    • Online discount with stealth postage 5%.

       
  4. First-Class Mail International
    • Registered service available.
Rate Changes
While rates will be going up for all international classes, there are new options that will help you to manage those costs for your shipping. Endicia users will have the advantage of new discounts for using an online shipping option. You may also achieve significant savings by using the new flat-rate options in Express Mail International and Priority Mail International.

Why Did The USPS Make These Changes?
The U.S. Postal Service is implementing these changes to streamline international service and to associate international product offerings with more familiar domestic products. This is actually only the second international rate increase since January 2001. In that time, the USPS' own costs have increased without a corresponding rate increase, while private carriers have made yearly price increases. This rate increase should cover the U.S. Postal Services' rising costs while still offering prices competitive with other international carriers.

First-Class Mail

First-Class Mail rates will be split into three categories, based on shape and rigidity: letters, flats, and parcels. Electronic Delivery & Signature Confirmation are still only available for parcels in First-Class Mail. While rates will go up dramatically for light flats and parcels, the prices for letters weighing over 1 ounce and large envelopes weighing over 6 ounces will actually decrease.

Despite the rise in rates for some weights and shapes, First-Class Mail remains a bargain compared with the 1-lb rates from private carriers.

Rate Change Summary
The postage rate for First-Class Mail letters is only increasing by 2 cents for the first ounce. As illustrated in the following table, after the first ounce, the new rates decrease compared to the old rates. Delivery and Signature Confirmation are not available with First-Class Mail letters.

 
First-Class Mail Letters
Weight ≤ Old New Change
1oz $0.39 $0.41 5%
2oz $0.63 $0.58 -8%
3oz $0.87 $0.75 -14%
3.5oz $1.11 $0.92 -17%

If you are sending a mail piece that qualifies as a flat (as defined in the next section), the rates for the first 5 ounces are going to be more than the old rates by 10-54%. The higher the weight, the less the rate increase, and for flats weighing more than 6 ounces, the new rates are lower than the old ones. Delivery and Signature Confirmation are not available with First-Class Mail flats.

 
First-Class Mail Flats
Weight ≤ Old New Change
1oz $0.52 $0.80 54%
2oz $0.63 $0.97 54%
3oz $0.87 $1.14 31%
4oz $1.11 $1.31 18%
5oz $1.35 $1.48 10%
10oz $2.55 $2.33 -9%

If you are sending a mail piece that qualifies as a parcel (as defined in the next section), you may use Delivery or Signature Confirmation. For First-Class Mail parcels with electronic Delivery Confirmation, the rates for the first 6 ounces are going to be more than the old rates by 25-98%. The higher the weight, the less the rate increase, and for parcels weighing over 10 ounces, the new rates are within 3% of the old rates.

 
First-Class Mail Parcels with DC
Weight ≤ Old New Change
1oz $0.66 $1.31 98%
2oz $0.77 $1.48 92%
3oz $1.01 $1.65 63%
4oz $1.25 $1.82 46%
5oz $1.49 $1.99 34%
10oz $2.69 $2.84 6%

Despite the rate increase, First-Class Mail parcels remain a bargain compared with the 1-lb rates from private carriers.

Shape-Based Pricing
First-Class Mail postage pricing will no longer be based solely on weight. First-Class Mail will be divided into four separate classifications: First Class Postcard, First Class Letter, First Class Flat (large envelopes) and First Class Parcel (packages). While rates will go up for flats and parcels, the prices for letters weighing over 1 ounce and large envelopes weighing over 6 ounces will actually decrease. Here's additional information on the rules and guidelines for the separate classes:
  1. Letters and Postcards:
    • The maximum weight for letter-size pieces will be 3.5 ounces.
    • The single-piece 1-ounce letter rate will increase to 41 cents, and the single-piece postcard rate will increase to 26 cents. The additional ounce rate will decrease to 17 cents.
    • Postcard dimensions:
      • Length of 5 – 6 inches
      • Height of 3 1/2 to 4 1/4 inches
      • Thickness of 0.007 inch – 0.016 inch
    • Letter dimensions (illustrated below):
      • Length of 5 – 11 1/2 inches
      • Height of 3 1/2 – 6 1/8 inches
      • Thickness of 0.007 inch – 0.25 inch

       

       
  2. Flats (Large Envelopes):
    • The single piece 1-ounce rate for large envelopes (flats) will be 80 cents. Each extra ounce will add 17 cents.
    • All flats must be rectangular in shape, uniform in thickness, and flexible.
    • Flat dimensions (illustrated below):
      • Length of 11 1/2 – 15 inches
      • Height of 6 1/8 – 12 inches
      • Thickness of 1/4 – 3/4 inch

       

       
  3. Packages (Parcels):
    • The single-piece 1-ounce rate for packages will be $1.13. Each extra ounce will add 17 cents.
    • Electronic Delivery Confirmation is available on First-Class Mail parcels for $0.18.
    • If a mail piece does not qualify as letter or a flat, it is a parcel.
    • If a mail piece is in a box, is rigid, or is not uniform in thickness, it is a parcel.
    • Parcel dimensions:
      • Length + Girth cannot exceed 108 inches
      • Girth is the measurement (circumference) around the thickest part of the package

Why Did The USPS Make These Changes?
The new prices are a reflection of the substantially different processing costs for these different shapes. This pricing will enable the Post Office to cover the actual cost of processing each shape. The pricing will also motivate mailers to configure mail pieces in the shapes that are easiest to process.

Media Mail

As illustrated in the table below, Media Mail rates for 1-3lb parcels with Delivery Confirmation are increasing by 11-33%. Beyond that, the rates increase by 5% or less, and for higher weight parcels, they actually decrease compared with the old rates.

 
Media Mail with DC
Weight ≤ Old New Change
1lb $1.73 $2.31 33.5%
2lb $2.21 $2.65 19.9%
3lb $2.69 $2.99 11.2%
4lb $3.17 $3.33 5.0%
5lb $3.65 $3.67 0.5%
10lb $5.63 $5.37 -4.6%

Tips & Hints

Even though most rates will be going up, there are things you can do to lessen the impact of these changes on your bottom line. Here are some tips to help you make the most of your shipping budget.

Re-think Your Packaging
Up to now, only the weight of a package or letter has been a concern for most shippers. That may have led you to focus more on keeping the weight of your package down. Now is a good time to take a look at why you ship packages and letters in the formats you are currently using. In many cases, if you can change your packaging you can save some money on the new rates.

 
  • For Priority Mail boxes, consider changing packaging to stay under one cubic foot.
  • Take some time to measure your current supply of shipping boxes. If any of them are over a cubic foot, do they need to be? Could you safely ship your items in smaller boxes?
    • It's a good time to get in touch with your packaging supplier and see if there are other workable options for padding and packing your parcels.
    • Also, look into using variable-depth packaging so you can always fit the container as closely as possible to the contents.
  • For First Class mail, think about folding the contents to make a flat-sized mailer over into a letter-sized mailer.


Use Flat-Rate Options, Including International
Flat rate envelopes and boxes are the same price no matter what the weight. Visit http://shop.usps.com to see what options are available. You may be able to save on smaller heavier packages such as books. Keep in mind that there are weight limits for some of the new international flat rates. Weight limits vary for different classes and sizes so make sure you know if there is a limit for what you're using:

 

  • Priority Mail flat rate envelope will cost $4.60
  • Priority Mail flat rate boxes will cost $8.95
  • Express Mail flat rate envelope will cost $16.25
  • Priority Mail International flat rate envelope can weigh up to 4lbs.
    • Shipping to Canada or Mexico will cost $9.00
    • Shipping to any other countries will cost $11.00
  • Priority Mail International flat rate boxes can weigh up to 20lbs.
    • Shipping to Canada or Mexico will cost $23.00
    • Shipping to any other countries will cost $37.00
  • Express Mail International flat rate envelope can be any weight.
    • Shipping to Canada or Mexico will cost $22.00
    • Shipping to any other countries will cost $25.00

Assess Multi-Carrier Options
If you use a private carrier for your international shipping, you should evaluate whether the new USPS international options, including the flat rate boxes, can trim your transportation costs.

 

Common Box Sizes

Box Dimensions
(inches)
Dimensional Weight
Zones 5-8
Balloon Rate
Zones 1-4
Box Type Length Width Height Applies? Min Wt (lbs) Applies? Min Wt (lbs)
OfficeMax 0302-0518 24 1/4 24 17 Y 51   20
OfficeMax 0301-6202 20 20 20 Y 42 Y 20
OfficeMax 0301-6177 14 14 14 Y 15 N -
Office Depot 161488 16 1/4 12 1/2 10 1/2 Y 11 N -
Office Depot 434044 24 15 10 1/4 Y 20 N -
Office Depot 322476 15 12 10 Y 10 N -
Uline S4040 4 4 4 N - N -
Uline S4050 5 5 5 N - N -
Uline S4062 6 6 6 N - N -
Uline S4084 8 8 8 N - N -
Uline S4105 10 10 10 N - N -
Uline S4125 12 12 12 N - N -
Uline S4142 14 14 14 Y 15 N -
Uline S4166 16 16 16 Y 22 N -
Uline S4185 18 18 18 Y 10 Y 20
Uline S4201 20 20 20 Y 42 Y 20
Uline S4319 22 22 22 Y 55 Y 20
Uline S4247 24 24 24 Y 72 Y 20
Uline S4080 8 6 4 N - N -
Uline S4103 10 8 6 N - N -
Uline S4128 12 6 6 N - N -
Uline S4215 12 12 4 N - N -
Uline S4122 12 12 6 N - N -
Uline S4124 12 12 8 N - N -
Uline S4124 12 12 8 N - N -
Uline S4163 16 12 12 Y 12 N -
Uline S4181 18 12 12 Y 14 N -
Uline S4338 24 18 18 Y 41 Y 20
Uline S4243 24 12 12 Y 18 N -
Uline S4340 24 18 18 Y 41 Y 20
Franchise Partner #1 0701-1680390 6 6 6 N - N -
Franchise Partner #1 0752-1680620 8 8 8 N - N -
Franchise Partner #1 0701-1680300 10 10 10 N - N -
Franchise Partner #1 0752-1682007 48 10 10 Y 25 Y 20
Franchise Partner #1 0752-1680770 12 12 6 N - N -
Franchise Partner #1 0752-1680110 12 12 12 N - N -
Franchise Partner #1 0752-1680210 14 14 14 Y 15 N -
Franchise Partner #1 0701-1680220 15 12 10 Y 10 N -
Franchise Partner #1 0701-1681548 48 15 15 Y 56 Y 20
Franchise Partner #1 0752-1680230 16 16 16 Y 22 N -
Franchise Partner #1 0752-1680130 18 12 12 Y 14 N -
Franchise Partner #1 072-1680430 18 18 18 Y 31 Y 20
Franchise Partner #1 0701-1680250 20 14 12 Y 18 N -
Franchise Partner #1 0752-1680190 20 20 20 Y 42 Y 20
Franchise Partner #1 0752-1680180 24 16 12 Y 24 N -
Franchise Partner #1 0752-1680170 24 18 12 Y 27 N -
Franchise Partner #1 0752-1680150 24 24 24 Y 72 Y 20
Franchise Partner #1 0701-1681030 30 17 16 Y 43 Y 20
Franchise Partner #1 0701-1681150 26 20 20 Y 54 Y 20
Franchise Partner #1 0701-1680000 24 6 18 Y 14 N -
Franchise Partner #1 0701-1680101 30 6 24 Y 23 Y 20
Franchise Partner #1 0101-1680200 36 5 1/2 29 Y 30 Y 20
Franchise Partner #1 0735-1683075 53 7 30 Y 58 Y 20
Franchise Partner #1 0101-1681007 12 1/8 9 1/4 2 N - N -
Franchise Partner #1 0701-1681712 17 11 2 1/2 N - N -
Franchise Partner #1 0701-1683826 19 12 3 N - N -
Franchise Partner #2 P752-1680300 10 10 10 N - N -
Franchise Partner #2 P752-COPYBOX 11 1/8 8 7/8 11 N - N -
Franchise Partner #2 P752-1680110 12 12 12 N - N -
Franchise Partner #2 P752-1680210 14 14 14 Y 15 N -
Franchise Partner #2 P752-1680230 16 16 16 Y 22 N -
Franchise Partner #2 P752-1680130 18 12 12 Y 14 N -
Franchise Partner #2 P752-1680430 18 18 18 Y 31 Y 20
Franchise Partner #2 P752-1680190 20 20 20 Y 42 Y 20
Franchise Partner #2 P752-1680180 24 16 12 Y 24 N -
Franchise Partner #2 P752-1680150 24 24 24 Y 72 Y 20
Franchise Partner #3 4 4 4 N - N -
Franchise Partner #3 6 6 6 N - N -
Franchise Partner #3 8 6 4 N - N -
Franchise Partner #3 8 8 8 N - N -
Franchise Partner #3 10 8 6 N - N -
Franchise Partner #3 10 10 5 N - N -
Franchise Partner #3 10 10 10 N - N -
Franchise Partner #3 12 9 3 N - N -
Franchise Partner #3 12 10 6 N - N -
Franchise Partner #3 12 12 12 N - N -
Franchise Partner #3 14 14 5 N - N -
Franchise Partner #3 14 14 10 Y 11 N -
Franchise Partner #3 14 14 14 Y 15 N -
Franchise Partner #3 15 11 7 N - N -
Franchise Partner #3 15 12 10 Y 10 N -
Franchise Partner #3 16 16 16 Y 22 N -
Franchise Partner #3 18 12 5 N - N -
Franchise Partner #3 20 15 15 Y 24 N -
Franchise Partner #3 20 16 14 Y 24 N -
Franchise Partner #3 20 20 10 Y 21 N -
Franchise Partner #3 24 12 12 Y 18 N -
Franchise Partner #3 36 12 12 Y 27 N -
Franchise Partner #3 48 12 12 Y 36 Y 20
Franchise Partner #3 18 18 18 Y 31 Y 20
Franchise Partner #3 20 20 20 Y 42 Y 20
Franchise Partner #3 30 15 15 Y 35 Y 20
Franchise Partner #3 36 20 15 Y 56 Y 20
Franchise Partner #3 24 24 24 Y 72 Y 20
Miscellaneous 12 12 12 N - N -
Miscellaneous 12 10 10 N - N -
Miscellaneous 16 1/8 10 5/8 11 1/4 Y 10 N -
Miscellaneous 10 8 3/4 3 1/2 N - N -
Miscellaneous 12 10 6 N - N -
Miscellaneous 9 5 5 N - N -
Miscellaneous 11 1/8 8 3/4 2 1/3 N - N -
Miscellaneous 6 6 4 N - N -
Miscellaneous 4 4 6 N - N -
Miscellaneous 7 1/4 3 1/4 5 N - N -

THIS INFORMATION HAS BEEN OBTAIN FROM THE USPS AND OUR POSTAGE PRINTING COMPANY AND PARTS WERE OMITTED THAT DEALT WITH POSTAGE PRINTING PROGRAMS. WE CURRENTLY HAVE FREE CONFIRMATION DELIVERY AND WILL CONTINUE TO HAVE FREE DELIVERY CONFIRMATION FOR PRIORITY MAIL. AS OUR SHOPPING CART IS A STAND ALONE PROGRAM IT IS HOPE THEY WILL ADOPT THE RATE CHANGE AND MAILING CLASSIFICATIONS TO DISCLOSE THE CORRECT TERMS AND OPTIONS. WE CURRENTLY ONLY CHARGE THE ACTUAL POSTAGE AND IN SOME CASES THE SHIPPING MATERIAL INVOLVED. IN THE PAST WHEN THE POSTAGE WAS GREAT THAN THE SHOPPING CART AMOUNT WE PAID THE DIFFERENCE, BUT MAY NOT BE ABLE TO DO SOME IN THE FUTURE. POSTAGE PROBLEMS WILL BE EMAIL TO THE CUSTOMER FOR THEIR APPROVAL PRIOR TO THE SHIPPING