Shipping Rates Increase - January 17, 2016

january-2016-rate-change-article---lead-graphic

Effective January 17, 2016, USPS shipping rates increase an average of 9.5%. The January increase does not impact letters, First-Class flats and cards.

Even though shipping rates are rising, the USPS remains a cheap, reliable option for many package mailing scenarios.

FP Mailing Solutions Customers

FP customers may need to take action to update their equipment and/or software to the new rates. For instructions, go to the FP Rates Update Center.

Read on to see what’s changing and how you can cut more mail costs.

Rate Increase Highlights

  • The average shipping price rises 9.5% from $5.02 to $5.50.
  • Priority Mail rises an average of 9.8%.
  • Priority Mail Express rises an average of 15.6%.
  • The USPS discontinues Priority Mail Express Flat Rate boxes.
  • First-Class Package Service rises an average of 12.8%. But there is good news after January 17: The maximum weight for First-Class Package increases from 12.99 oz to 15.99 oz. Also, the rate for First-Class Packages under 8 oz. is a flat $2.60, which simplifies lightweight package pricing.
  • Standard Post is now called Retail Ground, with an average increase of 10%.
  • The USPS Click ‘n Ship online label printing service will no longer use Commercial Base Pricing discount.

Download & Print:
Shipping Rates Increase Infographic:

january-2016-rate-change-infographic

January 2016 Postage Rate Increase (Infographic)

Shipping Rate Average Increases At-a-Glance

Shipping Service INCREASE
Overall
INCREASE
Retail
INCREASE
Commercial Base Pricing (CBP)
New CBP Discount
Priority Mail 9.8% 8.6% 9.4% 13.9%
Priority Mail Express 15.6% 14.4% 17.7% 10.0%
First-Class Package 12.8% N/A N/A N/A
Parcel Select Ground (formerly Select Nonpresort) 3.1% N/A N/A N/A
Retail Ground (formerly Standard Post) 10% 10% N/A N/A

Eliminated Services

The USPS eliminated the following products for the January 2016 rate change:

Commercial Base Pricing (CBP) on USPS Click ‘n Ship (Print & Ship) Online Service
Until January 17, 2016, anyone with internet access could log into usps.com and buy a 4”x6” label at the Commercial Base Pricing discount. After this rate change, the USPS online service charges higher retail rates. To get CBP discounted rates, you need a postage meter or online postage service.

First-Class Package—Commercial Plus Pricing
Commercial Plus Pricing (bulk package price discount) for First-Class Package Service (FCPS) is going away, leaving mailers with Commercial Base Pricing (single-piece price discount) for FCPS.

Regional Rate Box C for Priority Mail and Priority Mail International
This large box (up to 25 lbs) had flat rate pricing, depending on origin & destination (zones). Regional Rate Boxes A (15 lbs) and B (20 lbs) remain.

Flat Rate Box for Priority Mail Express and Priority Mail International Express
After January 17, 2016, mailers will price Priority Mail Express by weight & zone.

Critical Mail
Critical Mail was a service for high-volume mailers that offered tracking and more security for important documents. Commercial Plus Flat Rate Envelopes and Signature Confirmation services replace Critical Mail.

Adapting to the New Rates

Here’s what you can do to adjust your business shipping practices to the new rates:

  • Consider flat rate envelopes and boxes. With the new price structures, flat rate will more often cost less than your own packaging.
  • Consider USPS more often for packages under five pounds.
  • Run some calculations at the USPS Postage Calculator for your typical shipping practices. You may find less expensive alternatives that will save your business a lot of money.
  • Get on the Commercial Base Pricing (CBP) bandwagon. As of January 17, CBP is no longer on the USPS Print ‘n Ship website. Plus, all USPS package shipments must be IMPB (Intelligent Mail Package Barcode) compliant. To get IMPB barcodes, you could go to the local post office and pay higher retail rates. Why not use a postage meter or online postage service to get Commercial Base Pricing?
  • For lightweight packages, consider shifting to First-Class Package Service. It’s a flat $2.60 for packages under 9 ounces.

First Class Package Service Rates

Typically 1-3 Days Delivery, includes tracking

Prices are for lightweight single-piece (up to 15.99 oz) commercial rates, which requires a postage meter or online postage service.

Don’t confuse this with First Class Retail Parcels, which is intended for residential or one-off shipping of lightweight (up to 13 oz) through the local post office. First Class Retail Parcel service is part of the Dominant (non-competitive) mail classes and is not part of the January 17 rate change.

Weight (up to) Before Jan. 17 After Jan. 17 Price Increase Percent Increase
0.99 oz $2.04 $2.60 $0.56 27.5%
1.99 oz $2.04 $2.60 $0.56 27.5%
2.99 oz $2.04 $2.60 $0.56 27.5%
3.99 oz $2.13 $2.60 $0.47 22.1%
4.99 oz $2.22 $2.60 $0.38 17.1%
5.99 oz $2.35 $2.60 $0.25 10.6%
6.99 oz $2.53 $2.60 $0.07 2.8%
7.99 oz $2.71 $2.60 -$0.11 -4.1%
8.99 oz $2.89 $3.30 $0.41 14.2%
9.99 oz $3.07 $3.35 $0.28 9.1%
10.99 oz $3.25 $3.40 $0.15 4.6%
11.99 oz $3.44 $3.45 $0.01 0.3%
12.99 oz $3.63 $3.50 -$0.13 -3.6%
13.99 oz Varies $3.55 N/A N/A
14.99 oz Varies $3.60 N/A N/A
15.99 oz Varies $3.65 N/A N/A

Priority Mail Rates

1-3 Days Delivery, includes tracking

Priority Mail Commercial Base Pricing
Your Packaging (5lb Package)
ZONE
1 & 2
ZONE
3
ZONE
4
ZONE
5
ZONE
6
ZONE
7
ZONE
8
ZONE
9
Before Jan. 17 $6.78 $7.33 $8.42 $11.26 $15.22 $16.58 $18.87 $22.64
After Jan. 17 $7.39 $7.99 $9.01 $11.26 $15.22 $17.41 $19.81 $28.30
Price Increase $0.61 $0.66 $0.59 $0.00 $0.00 $0.83 $0.94 $5.66
Percent Increase 9.0% 9.0% 7.0% 0.0% 0.0% 5.0% 5.0% 25.0%
Priority Mail Retail Pricing
Your Packaging (5lb Package)
ZONE
1 & 2
ZONE
1 & 2
ZONE
1 & 2
ZONE
1 & 2
ZONE
1 & 2
ZONE
1 & 2
ZONE
1 & 2
ZONE
1 & 2
Before Jan. 17 $8.95 $9.95 $11.30 $16.20 $17.80 $19.20 $21.55 $25.20
After Jan. 17 $9.85 $10.95 $12.45 $17.00 $18.70 $20.65 $23.15 $30.25
Price Increase $0.90 $1.00 $1.15 $0.80 $0.90 $1.45 $1.60 $5.05
Percent Increase 10.1% 10.1% 10.2% 4.9% 5.1% 7.6% 7.4% 20.0%
Priority Mail Commercial Base Pricing
Flat Rate
Envelope Legal Envelope Padded Envelope Small Box Medium Box Large Box
Before Jan. 17 $5.05 $5.25 $5.70 $5.25 $11.30 $15.80
After Jan. 17 $5.75 $5.75 $6.10 $6.10 $11.95 $16.35
Price Increase $0.70 $0.50 $0.40 $0.85 $0.65 $0.55
Percent Increase 13.9% 9.5% 7.0% 16.2% 5.8% 3.5%
Priority Mail Retail Pricing
Flat Rate
Envelope Legal Envelope Padded Envelope Small Box Medium Box Large Box
Before Jan. 17 $5.75 $5.90 $6.10 $5.95 $12.65 $17.90
After Jan. 17 $6.45 $6.45 $6.80 $6.80 $13.45 $18.75
Price Increase $0.70 $0.55 $0.70 $0.85 $0.80 $0.85
Percent Increase 12.2% 9.3% 11.5% 14.3% 6.3% 4.7%

Priority Mail Express Rates

Overnight delivery

Priority Mail Express Commercial Base Pricing
Your Packaging (1lb Package)
ZONE
1 & 2
ZONE
3
ZONE
4
ZONE
5
ZONE
6
ZONE
7
ZONE
8
ZONE
9
Before Jan. 17 $15.13 $17.58 $22.21 $25.21 $27.54 $29.10 $30.00 $36.60
After Jan. 17 $20.66 $21.56 $25.97 $29.07 $30.11 $31.95 $32.94 $40.19
Price Increase $5.53 $3.98 $3.76 $3.86 $2.57 $2.85 $2.94 $3.59
Percent Increase 36.5% 22.6% 16.9% 15.3% 9.3% 9.8% 9.8% 9.8%
Priority Mail Express Retail Pricing
Your Packaging (1lb Package)
ZONE
1 & 2
ZONE
1 & 2
ZONE
1 & 2
ZONE
1 & 2
ZONE
1 & 2
ZONE
1 & 2
ZONE
1 & 2
ZONE
1 & 2
Before Jan. 17 $17.95 $23.95 $28.85 $32.30 $33.45 $35.50 $36.60 $44.65
After Jan. 17 $22.95 $23.95 $28.85 $32.30 $33.45 $35.50 $36.60 $44.65
Price Increase $5.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Percent Increase 27.9% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Priority Mail Express Commercial Base Pricing
Flat Rate
Envelopes Flat Rate Boxes
Before Jan. 17 $18.11 $44.95
After Jan. 17 $20.66 Discontinued
Price Increase $2.55 N/A
Percent Increase 14.1% N/A
Priority Mail Express Retail Pricing
Flat Rate
Envelopes Flat Rate Boxes
Before Jan. 17 $19.99 $44.95
After Jan. 17 $22.95 Discontinued
Price Increase $2.96 N/A
Percent Increase 14.8% N/A
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