US Postal Rate Commission Approves Rate Hike in 2006

[mandy]

Postal Rate Commission Approves Rate Hike

The independent Postal Rate Commission today approved a postage rate
increase expected to take effect in early 2006.

The cost of a First-Class stamp will go up two cents, to 39 cents, while the
postcard rate will rise to 24 cents. The increases will enable the Postal Service to meet a
$3.1 billion escrow payment due in 2006.

The decision follows an administrative proceeding involving mailers, employee
organizations, consumer representatives and competitors. A broad cross-section of
participants eventually supported the Postal Service’s request that all rates go up 5.4%,
and the Commission generally accepted this proposal.

The Commission altered the rates proposed for nonprofit organizations so that
they will pay $17 million less than the Postal Service requested, and recommended that
small local newspapers enjoy a 2.3% rate decrease. However, the Commission found
that the rates sought for books and media materials was too low to cover the cost of
handling that mail, and recommended a 12.7% increase.

This will be the first hike in postage rates since June, 2002. The increase is well
below the rise in the CPI over that period, although the rate for First-Class mail has
closely tracked the rate of inflation over the last 35 years.

full press release from 1st November: http://www.prc.gov/news/13/PressBookR2005-1.pdf

[amy]

all rates go up 5.4%,

1 lb priority mail $4.06?    Buyers aren't going to like higher shipping charges. 

[xppman]

Yep. Buyers aren't going to like higher shipping charges for sure.
There will be a lot of  going on soon between buyers and sellers
on auction sites.

I saw this coming too and is another reason I decided to do away
with S&H cost breakdowns on my site.

Now on auctions it's a different story.
If I pad the S&H into the cost I would pay a higher listing and FV fees.

The only thing that is going to save the little guys (and gals),
is being in a niche market with items that are not easily available in a B&M.

Of course the B&M's must go up too because I know of many of my vendors for hardware and such, that are now being charged shipping when they place their orders to restock or for special orders like I do for my hooks /hardware.

[sneakymagenta]

There will be a lot of    going on soon between buyers and sellers on auction sites.

Especially on auction sites

[maggie777]

Starting in January  I found more rates

The following rate changes are included in the recommendations:

    * First-class mail, first ounce, up 2 cents to 39 cents.
    * First-class, each additional ounce, up 1 cent to 24 cents.
    * Post card, up 1 cent to 24 cents.
    * Priority Mail, base rate up 20 cents to $4.05.
    * Priority Mail, one pound, up 30 cents to $6.15.
    * Express Mail, 8 ounces, up 75 cents to $14.40.
    * Parcel Post, 2 pounds, up 22 cents to $4.36.
    * Certified mail, up 10 cents to $2.40.
    * Money orders up 5 cents to 95 cents.
    * Weekly news magazine, up 1 cent to 18.5 cents.
    * Household magazine, up 1.5 cents to 28.9 cents.
    * In-county newspaper, down 0.2 cents to 5.8 cents.
    * Small nonprofit publication, up 1.4 cents to 28.3 cents.
    * Presorted advertising mail, 2 ounces, up 1.1 cents to 21.4 cents.

[amy]

Revising ALL the shipping prices on our web sites and listings will be fun, fun, fun

[Nat]

In Canada the Canada Post Office raises their rates every single January which has become more known as Canada Post's Christmas present (but an unwanted one).  So, I'm used to every January changing all my rates.  It's actually become habit now - very sad.

[sneakymagenta]

In Canada the Canada Post Office raises their rates every single January

:blinkie:

the last USPS rate increase was in 2002.

[mandy]

Final approval.  New rates in effect 8th January

November 14, 2005
News Release No. 05-097
www.usps.com

GOVERNORS APPROVE CHANGE IN POSTAGE RATES
New rates go into effect January 8

WASHINGTON - The Governors of the U.S. Postal Service today voted to accept the Postal Rate Commission's recommendations to increase most postal rates and fees by approximately 5.4 percent across-the-board to take effect January 8.

This rate increase - the first since 2002 - is needed to fulfill the requirement of a federal law passed in 2003. That law requires the Postal Service to establish a $3.1 billion escrow account, with use of the funds to be determined by Congress at a later date. Without this federal mandate, it would not have been necessary to raise rates in 2006.

Among the rate adjustments, the single-piece rate for First-Class Mail will increase from 37 cents to 39 cents, and the postcard rate will increase by one cent to 24 cents. The Board of Governors of the Postal Service set January 8, 2006, as the effective date for the changes.

Jim Miller, Chairman of the Postal Service's Board of Governors, said: "The Governors take this action mindful of our obligation to assure the financial integrity of the nation's postal system. These increases will allow the Postal Service to meet the obligation established by Congress to place funds in escrow in 2006."

The Commission's Recommended Decision came after a proceeding in which most of the participants signed a settlement agreement adopting the Postal Service's uniform, across-the-board increase proposals. The settlement shortened to six months the Commission's administrative review, which normally takes ten months.

International rates, which are determined separately from domestic prices, will be adjusted to coincide with the domestic rate changes. International rates have not been adjusted since January 2001.

For a chart on selected rates, please see below.

Selected Rate Changes
Current New
First-Class Letter (1 oz.) 37¢ 39¢
First-Class Letter (2 oz.) 60¢ 63¢
Postcard 23¢ 24¢
Priority Mail (1 lb.) $3.85 $4.05
Express Mail (1/2 lb) $13.65 $14.40
Express Mail (2 lb) $17.85 $18.80


Fee and Service Changes
Current New
Certified Mail $2.30 $2.40
Delivery Confirmation (Priority) 45¢ 50¢
Delivery Confirmation (First Class Parcels) 55¢ 60¢
Return Receipt (Original Signature) $1.75 $1.85
Return Receipt (Electronic) $1.30 $1.35
Money Orders (up to $500) 90¢ 95¢

[sneakymagenta]

GOVERNORS APPROVE CHANGE IN POSTAGE RATES
New rates go into effect January 8

Happy Holidays!