The U.S. Postal Service (USPS) has been exploring ways to cut down on costs, with Postmaster General David Steiner emphasizing that the service must find ways to boost revenue. Per a FreightWaves article from Aug. 7 (tinyurl.com/45nser3h), Steiner called the Postal Regulatory Commission’s decision to limit price increases to once a year cost the USPS $700 million in “lost revenue”, with his solution being more aggressive pricing on letters and bulk mail. A parcel surcharge implemented this past spring to cover rising fuel and transportation costs led to $19.8 billion in operating revenue for three months, with the 8% parcel surcharge driving up parcel shipping revenue by 7.7% despite a 3.4% decline in shipping volume, meaning shippers were sending less but paying more.
One revenue-generating measure that went into effect July 15 was a flat rate for Ground Advantage packages shipped to rural ZIP codes that weigh under one pound. The USPS has historically billed these packages by weight, but now, for rural ZIP codes, any package under 15.99 ounces will be billed at the 15.99-ounce rate, which adds $2-4 on some shipments. This means that a package that only weighs three ounces will be treated the same as a 15.99-ounce package. This rate change does not apply to letters or white envelope mail.
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