USPS and Shipping: Will the Stamp Cost Make a Difference?
On April 10th, 2016 a first-class postage stamp will be reduced two cents to .47 cents. It will be the first time in nearly 100 years that the price of mailing a letter has gone down. This deal was arranged in the heart of the recession to help the United States Postal Service raise operating revenue. The post office is practically begging to be allowed to keep the increase going forward, and to revise its pricing schedule which Postmaster General Megan Brennan described as unworkable. The rate reduction also applies to postcard postage, and international stamps.
However, considering rate changes among FedEx, UPS, and the United States Postal Service as a whole, shipping is not actually getting any cheaper. While the postage rate for letters and cards will impact certain operations, such as those companies who use paper bills and statements, shipping continues to be an increasing expense with few alternatives to the big players. UPS announced an increase to its published rates on December 28 of 2015, across its package, ground freight, and airfreight services. FedEx announced increases effective January 4 of 2016 for express, ground, Home Delivery®, Smart Post® and freight services in addition to increasing its retail rates, and One Rate® services.
The United States Postal Service announced its increases to take effect on January 17 of 2016, and it was a doozy. Commercial Plus Pricing (CPP) discounts were brought within three percent of commercial base pricing (CBP). First-class packages shipped under CBP ended up with an average increase nearly 8 percent. Priority mail took a 2.4 percent increase, resulting in an average of one dollar more per package. Priority Mail Regional Rate Box C was discontinued, while cost for Box A increased by 10.1 percent and Box B increased by 5.1 percent. Priority Mail Express Commercial Base pricing took on an average increase of 42.1 percent, and the flat rate box was eliminated while flat rate envelopes took a $2.55 increase. There were also dramatic changes to international shipping rates.
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