Everything You Need to Know About the Proposed July Postal Increases
On April 9, 2024, the USPS filed a rate case with the PRC proposing a postal rate increase. If approved, these new rates would take effect on July 14, 2024. The PRC has been given until May 31 to review comments and finalize their decision. The rate adjustment includes six months of Consumer Price Index (CPI) adjustments, the Retirement Factor, a Density Adder, and an additional 2% increase for non-compensatory classes.
*The recent 2024 January rate increase could only contain CPI, which makes the proposed 2024 July rate increase larger.
Source: ENRU -Logistics & Postal Optimization
*Non-Compensatory would apply to Periodicals, Marketing Mail Flats and Package Services Media/Library Mail.
The following outlines the proposed price adjustments by mail class:
Source: ENRU -Logistics & Postal Optimization
Below are notable proposed Discount and Incentive changes:
• The USPS is proposing to increase the Full-Service Discount from $.003 per piece to $.005 per piece for Marketing Mail. Package Services and Periodicals will stay at $.001.
• The USPS has reduced the drop ship discounts on Marketing Mail Letters.
Source: ALG Worldwide Logistics Rate Recap
• The SCF 5D Auto Letter rates went up slightly higher than the Letter Rate Average for Marketing Mail. Increase will be 7.7966%.
• The USPS has reduced the drop ship discounts on Marketing Mail Flats.
Source: ALG Worldwide Logistics Rate Recap
• The USPS increased the discounts to move from 5D Auto SCF to CRRT Basic SCF Flats by $.031 per piece.
• Non-Profit Flats at the CRRT or 5D Auto Categories will see an increase between 19-23%.
• Flats over 4 OZ – The USPS, a couple of rate filings ago, changed the way it calculated prices for flats over. 4 OZ. Every flat had a piece rate that varied on sortation and then a pound rate that kicked on over 4 OZ. This change caused heavy weight flats to see a large postage increase and it reduced the incentive to drop ship. The July 2024 rate case shows a change in the structure and is going back to the “older” way rates were calculated on flats over 4 OZ. There will be a separate piece weight and a pound rate on flats above 4 OZ.
• The container discounts for flats did increase.
Source: ALG Worldwide Logistics Rate Recap
***Sources for the above USPS Proposed 2024 July Rate Change via ENRU - Logistics & Postal Optimization & ALG Worldwide Logistics.