May 2008 USPS Rate Change
Rate Examples
For detailed information about how you will be affected by the May 2008 USPS Shape-Based Pricing Initiative, choose from the product categories below.
Changes to First Class Mail
The USPS May 2008 rate change will raise a first class letter price from 41 to 42 cents and a postcard rate will raise from 24 to 26 cents.
The new Shape-based Pricing, de-emphasizing weight, will produce the following changes:
- 2 oz letter moves from 63 to 58 cents
- 2 oz flat moves from 63 to 97 cents
- 2 oz parcel moves from 63 cents to $1.30
USPS' shape initiative also affects workshare mail. The additional oz. rate for automation pieces is proposed to decrease from 23.7 cents to 12.5 cents for letters, and from 23.7 cents to 17 cents for pre-sorted letters, flats and parcels.
The USPS will introduce a new pre-sorted parcel category. This category will increase incentives for presorting parcels. Currently, there is only one pre-sort price at each weight increment, but the 2008 rate change will add new pre-sort rate tiers – 5 digit, 3 digit and ADC. Parcel pre-sorting requires a barcode, and if that is not possible for the customer, the rate adds a 5 cent surcharge.
The USPS will discontinue heavy piece discount and carrier route rates.
First Class Rate Examples:
| Letter | Weight |
Current |
Proposed |
1 ounce |
41¢ |
42¢ |
|
2 ounce |
63¢ |
58¢ |
|
3 ounce |
87¢ |
75¢ |
| Flat | Weight |
Current |
Proposed |
1 ounce |
52¢ |
80¢ |
|
7 ounce |
$1.83 |
$1.82 |
|
13 ounce |
$3.27 |
$2.84 |
| Parcel | Weight |
Current |
Proposed |
1 ounce |
52¢ |
$1.13 |
|
7 ounce |
$1.83 |
$2.15 |
|
13 ounce |
$3.27 |
$3.17 |
Changes to Priority Mail
The USPS will add dimensional weight pricing for Zones 5-8, basing rate costs on cubic size of item vs. weight.
The USPS will provide lower prices for some heavier items, depending also on shape of the item.
Flat rate box becomes a permanent part of the priority mail line up.
Proposed Priority Mail Rate Examples:
| Item | Current |
Proposed |
| Flat Rate Envelope | $4.05 |
$4.60 |
| Flat Rate Box | $8.10 |
$9.15 |
| 12-pound (Chicago to Los Angeles) | $19.80 |
$24.10 |
| 25-pound (Chicago to Los Angeles) | $36.85 |
$32.85 |
Changes to Express Mail
The USPS is offering a new 1 pound rate between the existing .5 lb and 2 lb rates.
Express Mail Pricing Examples:
| Item | Current |
Proposed |
| Up to 1/2 Pound & Flat Rate Envelope | $14.40 |
$16.25 |
| Over 1/2 Pound, up to 1 Pound | $18.80 |
$19.50 |
| Over 1 Pound, up to 2 Pounds | $18.80 |
$21.40 |
Changes to Standard Mail
The biggest change for standard class mail is for parcels, with the creation of distinct prices, more pre-sort tiers and a new drop ship option called destination delivery unit.
The USPS will increase drop ship incentives through lower prices for Destination Bulk Mail Center (DBMC) and Destination Sectional Center Facility (DSCF) mail.
Standard Class mail will have a new non-flat machinable flat category for mailpieces that are too thick or too rigid to run on USPS flat automation. This new category will have higher prices than flats, but lower prices than machinable and nonmachinable parcels.
Destination delivery unit (DDU) rate for enhanced carrier route (ECR) letters will be discontinued. The best price is given to letters taken to the plant, not the DDU.
The USPS will differentiate prices for detached address labels (DAL) because they no longer provide the benefit they once did. They are still an option, but the USPS is charging 1.5 cents per DAL, as addressed pieces are more compatible with their operations.
The USPS is also adding more pre-sort options.
