Pricing & Classification DMM Advisory
November 10, 2021
U.S. Postal Service Announces New Competitive Prices and Two New Mail Products for 2022
The U.S. Postal Service filed notice with the Postal Regulatory Commission (PRC) today of price changes for Shipping Services to take effect Jan. 9, 2022.
The proposed prices, approved by the Postal Service Governors, would raise Shipping Services product prices approximately 3.1 percent for Priority Mail service, and 3.1 percent for Priority Mail Express service. Shipping Services price adjustments vary by product. Although Mailing Services price increases are based on the consumer price index, Shipping Services prices are primarily adjusted according to market conditions. The Governors believe these new rates will keep the Postal Service competitive while providing the agency with needed revenue.
If favorably reviewed by the PRC, the new prices will include an increase in the price of a Small Flat-Rate Box to $9.45. The Medium Flat-Rate Box would increase to $16.10, the Large Flat-Rate Box would decrease to $21.50 and the price of the APO/FPO Large Flat-Rate Box would decrease to $20.00. Regular Flat-Rate Envelopes, Legal Flat-Rate Envelopes, and Padded Flat-Rate Envelopes would increase to $8.95, $9.25, and $9.65 respectively.
The proposed domestic Priority Mail Flat Rate Retail price changes are:
The Postal Service has some of the lowest letter-mail postage rates in the industrialized world and continues to offer a great value in shipping. Unlike some other shippers, the Postal Service does not add surcharges for residential delivery or regular Saturday delivery.
The PRC will review the prices before they are scheduled to take effect. The complete Postal Service price filings with prices for all products can be found on the PRC site under the Daily Listings section at prc.gov/dockets/daily. For the Shipping Services filing, see Docket No. CP2022-22. The price change tables are also available on the Postal Service’s Postal Explorer website at pe.usps.com/PriceChange/Index.
The filing also included pricing to support USPS Connect, a suite of affordable package delivery solutions for businesses that the Postal Service expects to launch in 2022, if favorably reviewed.
In addition, the Postal Service is also supporting mail by requesting approval for two mail products focused on local communities. First, after a 2-year market test, the Postal Service is requesting the establishment of a permanent Plus One product which will provide additional marketing options for businesses to reach local customers utilizing mail. Building on the USPS Connect pilot, the Postal Service is requesting approval for a market test for a new USPS Connect Local Mail product which will provide the ability to send documents within local communities for same/day next delivery.
With full implementation, the Postal Service’s 10-year Delivering For America plan is designed to reverse a projected $160 billion in operating losses over the next 10 years. The Plan’s growth and efficiency initiatives, including the proposed pricing changes, together with necessary legislation, should allow the Postal Service to make investments totaling approximately $40 billion over the next 10 years to modernize and improve our infrastructure to become more efficient and service responsive.
The Postal Service receives no tax dollars for operating expenses and relies on the sale of postage, products, and services to fund its operations.