USPS has filed a notice of price changes to take effect early next year – here are the specifics.
On October 6th, USPS made an announcement of upcoming price changes that will start January 21, 2018. A notice that was filed with the Postal Regulatory Commission shows possible price increases for many of USPS’s products and services. For instance, the First-Class Mail Forever stamp increases by one cent and Priority Mail Shipping Services increase by 3.9%.
Here is an outline of USPS’s price increases that are most important regarding parcel shipping:
- Small Flat Rate Box will increase from $7.15 to $7.20
- Medium Flat Rate Box will increase from $13.60 to $13. 65
- Large Flat Rate Box will increase from $18.85 to $18.90
- APO/FPO Large Flat Rate Box will increase from $17.35 to $17.40
- First Class Package International Service (FCPIS) increase is 3.8%
- Priority Mail International (PMI), Priority Mail Express International (PMEI) and Global Express Guaranteed (GXG) increases are pegged at 3.9%
- Parcels weighing one pound or less and moving under “Parcel Select” to see a 7% rate hike
- A 4.9% increase will be applied to all other transactions moving under Parcel Select
Most shippers will likely experience a 5% or greater increase with USPS’s price changes, so it is important for companies who ship to stay on top of any cost changes that occur. Although the Postal Regulatory Commission still has to review the proposed prices before taking effect on January 21st, staying abreast of shipping expenses and rate changes is crucial, since these costs directly impact consumer purchasing decisions and bottom line profitability. For shipping vendors and policies, one size does not fit all.
USPS Rate Changes: What does this mean for ProShip Customers?
At ProShip, we are committed to providing our customers with all USPS updates as soon as they are available. Once the new 2018 USPS rates are made available, customers utilizing automatic updates will receive these updates without intervention using the ProShip Update Tool.
We value our partnership with USPS. ProShip is one of the first shipping software engines to be Manifest Analysis and Certification (MAC) Certified from USPS. MAC was developed by USPS to evaluate manifesting software and tests its ability to produce accurate postage and fees, as well as quality documentation. This certification highlights ProShip’s commitment to offer the best carrier compliant, multi-carrier shipping software to its customers.
It’s important to note that the USPS 2018 price increase is relatively modest compared to the last few years. Additionally, UPS and FedEx have both announced holiday surcharges and DIM weight charges that will make USPS more competitive in 2018.