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The United States Postal Service (USPS), a vital institution that bridges communication and commerce nationwide, recently issued a notice to the Postal Regulatory Commission (PRC). The notice unveiled the proposed price adjustment scheduled for July 10, 2022. Such changes reflect the broader economic landscape, considering various factors, including inflation. 

These adjustments come as part of the ambitious “Delivering for America plan, which signals the USPS’s commitment to modernizing its infrastructure. This plan will channel $40 billion into USPS infrastructure in the forthcoming decade. Despite these changes, the USPS maintains its reputation by offering highly competitive letter-mail postage rates globally. 

 An important distinction to make about USPS is its self-sustaining nature. The Postal Service doesn’t lean on tax dollars for its operational expenses. Instead, it stands on its own two feet, generating revenue by selling postage, various products, and various services. 

Source:USPS Newsroom

 

Inflation and Postage: The Expected Link 

Given the rising inflation rates sweeping the nation, it’s hardly surprising that many anticipated a hike in postage rates. As many predicted, USPS has adjusted its shipping service rates, with most experiencing an uptick, although there are a few exceptions with slight reductions.

 

Detailed Breakdown of the Rate Changes

 

  • Flat Rate Boxes and Envelopes: Flat rate mailings, a popular USPS service, have seen notable price shifts. The cost for a small flat-rate box has climbed to $9.45 from $8.45. Meanwhile,  Medium rate flat boxes now cost $16.10, up by 0.50 cents. Interestingly, large flat-rate boxes have been reduced, priced at $21.50, down by 40 cents. Flat-rate envelopes haven’t been spared either, with regular ones now costing $8.95 and legal ones priced at $9.25, both experiencing a dollar increment. Padded flat-rate envelopes have also risen from $8.55 to $9.65.

 

  • Postage Stamps and Metered Mail: a USPS mainstay, have increased prices from $0.58 to $0.60. A silver lining is their timeless value. Regardless of the purchase price, Forever stamps remain valid indefinitely. In line with this, the rate for metered mail has been proposed to increase by four cents, adjusting the price from $0.53 to $0.57.

 

  • 2022 First Class Presort Rate: Those using large First Class Envelopes weighing under 3 ounces can avail of a presort rate of $1.40. Remarkably, the transition from 2021 to 2022 has stayed the same presort rates. It’s worth noting that the accuracy and thoroughness of mail sorting can lead to substantial savings. At United Direct Solutions, our expertise ensures our clients benefit from the best rates year after year.

For a deeper understanding of how we can assist you in optimizing your postage expenses, don’t hesitate to reach out at 866-542-2107 or contact us directly, here at United Direct Solutions. 

 

Here is a Summary of the 2022 Postage Rate Increase (implemented January 9, 2022) 

This selection offers a comprehensive breakdown of the rate changes. 

Domestic Shipping:

  • Priority Mail Express will see a rate increase of 4.3% for Commercial Base (online postage) in 2022, with rates will starting at $23.50 (previously $22.75).
  • Priority Mail will see a rate increase of 2.7% for Commercial Base (online postage) in 2022, with rates starting at $7.37 (previously $7.16).
  • First Class Package Service will see a rate increase of 7.4% for Commercial Base (online postage) in 2022, with rates starting at $3.37 (previously at $3.01).
  • Parcel Select Ground will see a rate decrease of 12.1% for Commercial Base (online postage) in 2022, with rates starting at $7.22 (previously $7.01).
  • Starting in April 2022, a $1.50 fee was introduced for packages that are greater than one cubic foot or have a box length greater than 22 inches if the customer did not provide dimensions or provided inaccurate dimensions inside an online postage provider (e.g. Stamps.com). This applies to Priority Mail Express, Priority Mail and Parcel Select Ground.
  • Starting in April 2022, a new “nonstandard fee” was introduced for packages that must be sorted manually by the USPS when the dimensions of the package exceed sortation requirements. Rates will be adjusted based on box dimensions. Packages with length over 22 inches will have a $4.00 surcharge, packages with length over 30 inches will have $15.00 surcharge and packages over 2 cubic feet will have a $15.00 surcharge. This applies to Priority Mail Express, Priority Mail and Parcel Select Ground.

International Shipping:

  • Priority Mail Express International will see an average rate increase of 3.2% in 2022. Commercial Base (online postage) rates will start at $44.95 (previously 42.85).
  • Priority Mail International will see an average rate increase of 3.7% in 2022. Commercial Base (online postage) rates will start at $46.36 (previously $44.60).
  • First Class Package International Service will see an average rate increase of 4.2% in 2022. Commercial Base (online postage) rates will start at $14.11 (previously $13.54).

Source:Stamps.com

For a deeper dive into these changes and to keep updated of the latest USPS updates, please refer to the official PRC Site and the Postal Services’ Postal Explorer Website.