USPS Proposes Revised Rate Increase for April 2011 Print

Menlo Park, California, January 19, 2011


The United States Postal Service has proposed a rate increase for their First Class Mail, Standard Mail, Periodicals and Media Mail services by April 17, 2011. They also announced changes for the First Class International service. The new rate change is a 1.7 % increase on average. First Class Letters will remain at $0.44. However, each additional ounce or half ounce letters will cost an extra $0.20. They will also introduce Commercial Base Rates for First Class Parcels saving shippers $0.15 per mail piece. Priority Mail and Express Mail are not affected by this specific increase. These rates still need to be approved by the Postal Regulatory Committee.

Summary of Percentage Changes by Product Category

First-Class Mail                                          % Change
Single-piece Letters & Cards                   0.5%
Flats                                                               5.3%
Parcels                                                          3.8%
Presort Letters & Cards                             1.8%
International (Outbound and Inbound)    4.0%

Click here for more information from the USPS rate change.

The proposed price changes are expected to generate $340 million for the balance of the fiscal year and $720 million if implemented for a 12-month period. In July 2010, the Postal Service filed an exigent price proposal that was rejected by the Postal Regulatory Commission in September. The Postal Service filed an appeal of that decision with the United States Court of Appeals for the District of Columbia Circuit in November and awaits a decision.

The urgency of the Postal Service's current financial challenges requires this price change even as it waits for a decision from the federal courts on the exigent case.

The Postal Service receives no tax dollars for operating expenses, and relies on the sale of postage, products and services to fund its operation.


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