Standard Mail Rates Rise by an Average 3.8%

Standard Mail and standard nonprofit rates increased an average of 3.8% on Monday, in keeping with legal limits established under the Postal Accountability and Enhancement Act of 2006.

This rate hike comes at a time when the USPS posted a net loss of $2.3 billion for the year-to-date ended March 31, compared to a loss of $35 million in the prior year. The USPS attributed a significant part of the deepening loss to an unprecedented decline in mail volume of 7.5 billion pieces, to 43.8 billion, a 14.7% decline from last year.

The USPS fiscal year begins Oct. 1.

Earlier this month, the USPS board of governors authorized a standard rate postage sale offering a 30% rebate to eligible mailers above individually determined thresholds will run from July 1 through Sept. 30 of this year, in hopes of stimulating more mailer activity during the traditionally slower summer months (Direct Newsline, May 5).

Catalog or flat rates rose by 2.5% but some standard increases such as those for standard rate parcels rose as much as 16%, according to Jerry Cerasale, senior vice president of government affairs for the Direct Marketing Association (Direct Newsline, Feb. 10).

Those rates apply to parcels under one pound and affect to mailers like music clubs.
In the nonprofit arena, nonflat machinables and standard parcels are going up in the 15% to 18% range.

“The primary reason as I understand it is that they are substantially under cost for the postal service,” said Tony Conway, executive director of the Alliance of Nonprofit Mailers.

In addition:

Standard mail regular automation letters with five digit Zip codes that weigh 3.3 ounces or less will cost 23.33 cents to mail.

Standard mail regular automation letters with three digit Zip codes will cost 25.1 cents to mail.

First class rates rose to 44 cents from the 42, said the USPS.