Background

New Postal Service Shipping Services prices were announced on Nov. 22, 2011, and will take effect on Jan. 22, 2012 at 12:01 a.m. ET. Shipping Services (also known as “Competitive Products”) includes Express Mail, Priority Mail, International Shipping Services, along with some other products and services. The new prices take effect the same day as the new prices for Postal Service Mailing Services, including a one-cent increase in the price of a First-Class Mail stamp (Forever stamps).

Shipping Services prices going up:

The Postal Regulatory Commission (PRC) will review the prices before they become effective Jan. 22, 2012. By law, each product must cover its attributable costs. As a group, Postal Service Shipping Services products must contribute 5.5 percent of the Postal Service’s institutional costs.

The Postal Service adjusts its shipping prices annually just like other shipping companies. Unlike other shippers, the Postal Service doesn’t add surcharges for fuel, residential or Saturday delivery.

The overall price change for all Shipping Services is 4.6 percent, with Priority Mail prices increasing an average 3.1 percent and Express Mail prices increasing an average 3.4 percent.

The Consumer Price Index pricing cap does not apply to Postal Service Shipping Services like it does for Mailing Services. Shipping Services prices are adjusted strategically to attract business and to compete with other shipping companies.

New retail prices for Priority Mail Flat Rate Boxes and Envelopes

                Small box — $5.35

                Medium box — $11.35

                Large box — $15.45

                Large APO/FPO/DPO box — $13.45

                Regular envelope — $5.15

                Legal-size and Padded envelope — $5.30

• Priority Mail Flat Rate products give customers the ability to ship packages and envelopes for one price, regardless of weight, to anywhere in the country in about two days in most cases.

• Priority Mail includes Free Package Pickup at your door. Plus, when you ship online you’ll get special savings and free Delivery Confirmation.

New price for an Express Mail Flat Rate Envelope is $18.95

• The first-ever Express Mail Flat Rate Box will debut when the new prices take effect on Jan. 22. Priced at $39.95 for domestic mail, the box is ideal for customers who need overnight service for items larger than what can be placed in an Express Mail Flat Rate Envelope.
• Express Mail Flat Rate envelopes, and now the first-ever Express Mail Flat Rate Box, give customers the ability to ship items overnight for one price, regardless of weight, to anywhere in the country.
• Express Mail service offers delivery 365 days a year with no Saturday delivery charges, residential surcharges or fuel surcharges.

These new products and services will be available when the prices change in January

• New for commercial mailers in 2012 is Package Intercept, available through a customer interface on the Business Customer Gateway. For $10.95 plus Priority Mail postage, customers can request mail be intercepted before final delivery is attempted to the initial delivery address. The shipment can be returned to sender, held for pick up at a Post Office, or redirected to an alternate address.

The Postal Service offers the best value in shipping:

• The Postal Service offers free shipping supplies. Priority Mail and Express Mail boxes, envelopes and labels, international mailing products and customs forms are available at no charge. They can be ordered at usps.com or picked up at the Post Office and other retail outlets, including the Village Post Office.

Shipping to U.S. military personal serving overseas:

The Military Care Kit and special pricing make it easier than ever to send care packages to loved ones stationed overseas. The Postal Service is the only way to ship directly to APO’s FPOs and DPOs.

The overall average increase for each Shipping Service product and service:

                Express Mail — 3.4 percent

                Priority Mail — 3.1 percent

                First-Class Package Service — 3.7 percent

                Parcel Select — 8.5 percent

                Parcel Return Service — 4.6 percent

                International Mail — 9 percent

                Premium Forwarding Service — 3 percent

                Adult Signature Required — No price change

                Address Enhancements Services — 7.2 percent

Post Office Box Service — 2.9 percent for existing competitive Post Office Boxes within the Fee Group 1 range and 20 percent for the newly transitioned Post Office Boxes in the Fee Group 1

This pricing adjustment is not part of the Postal Service’s exigent pricing request.

To find out more information about the new prices:

All the new prices will be posted on the Postal Explorer website: http://pe.usps.com