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Live From DMA06: What Mailers Can Expect From Next Rate Hike
Oct 17, 2006 9:53 AM , By Larry Riggs
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With the new rate case that takes effect next May, mailers will have many new rules and regulations to look forward to, many of which are expected to set precedents for future of rate cases.

That was the message from Rose Flanagan, director of mailing services and Bob Rosser, director of integrated solutions at Transcontinental Direct, Hamburg, PA at DMA06 in San Francisco Monday.

In a Federal Register filing late last month, the U.S. Postal Service proposed changes to the way it considers mail and is soliciting comments until Nov. 17.

For example, it wants to base additional charges on the shape of a mailing piece rather than the weight -- partly to make them more compatible, said Flanagan. Some of these could raise current rates by more than 32%, added Rosser.

In addition, the USPS wants things like discounts for carrier route sortation and is considering changes in barcoding in addressing.

The postal service would also like to add a charge of 8o cents per container for periodicals, also a precedent-setting move, said Flanagan.

Another annoying aspects about these changes is that they will likely take place one month after the USPS Board of Governors approves the rate case, said Flanagan, who likened the situation to postal reclassification in 1996, when third class mail became standard mail and other profound changes took place.

Flanagan also complained that the USPS is not giving mailers enough time to test and develop new software to accommodate these changes.

Rosser added that all the proposals are "subject to change and I can't emphasize that enough."



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