US Postal Service Rate Increase and Service Changes - PowerPoint by rlb27893

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									US Postal Service
Rate Increase and
Service Changes
Effective May 14, 2007
Why The Change In Prices

        Increases in Costs
        Changes in operations and the market
        First price restructuring proposed since 2001
        Encourage Efficiency
First-Class Mail Strategy
       Shape-based pricing schedules
          Letters
          Flats
          Parcels
       De-emphasize weight
First-Class Mail
      Postcards                                           $.26
      Letters up to 1 ounce                               $.41
      Flats up to 1 ounce                                 $.80
      Parcels up to 1 ounce                               $1.13
      Each additional ounce up to 13 oz*                  $.17
      Priority Mail up to 1 pound                         $4.60
      Business Reply 1 ounce letter                       $.49
      Business Reply Postcard                             $.34

       *First-Class pieces over 13 ounces are subject to
        Priority Mail rates
First Class Letter-mail Dimensions

                                                 Minimum          Maximum


                                    Length*      5 inches         11-1/2 inches



                                    Height       3-1/2 inches     6-1/8 inches



                                    Thickness    0.007 inch       1/4 inch




       Maximum Weight: 3.5 ounces
       First-class letters exceeding maximum weight or sizes
       will be charged flat-size postage

       *Length is the dimension parallel to the address as read
Postcard Dimensions

                                            Minimum        Maximum

                                Length*     5 inches       6 inches


                                Height      3-1/2 inches   4-1/4 inches



                                Thickness   0.007 inch     0.016 inch




      Postcards exceeding maximum sizes will be charged letter-
      size postage

      *Length is the dimension parallel to the address as read
First-Class Flat-mail Dimensions

                                                         Minimum*           Maximum

                                         Length          11-1/2 inches      15 inches


                                         Height          6-1/8 inches       12 inches


                                         Thickness       1/4 inch           3/4 inch


                                         * Flats exceed at least one of these
                                              dimensions




     Flats that are rigid or not uniformly thick are subject to parcel rates.
     Flat-size mail pieces are considered uniformly thick when any bumps, protrusions,
     or other irregularities do not cause more than 1⁄4-inch variance in thickness.
     Flats that exceed size maximums will be charged parcel rates.

     The length of a flat-size mail piece is the longest dimension. The height is the
     dimension perpendicular to the length.
Flexibility Test




 Length runs parallel to the surface   Flats over 10 inches long that contain a rigid
                                          insert; length perpendicular to surface
Testing Flexibility for Flats




      Examples of “flats” that would be considered too rigid (and
      therefore not meet the flexibility requirements) boxes and box-
      like pieces, and tight envelopes that are completely filled to form
      box-like pieces.
Testing Flexibility for Flats > 10”

    Pieces that pass first test and contain rigid objects.
Testing Flexibility for Flats < 10”
    Pieces that pass first test and contain rigid objects.
Determining Priority Mail Dimensional Weight
Priority Mail dimensional weight for rectangular shaped parcels to zones 5-8.
1. Measure the length, width, and height in inches. Round off each measurement to the nearest
whole inch: (length = 21, height = 20, and width = 20).
2. Multiply length x height x width: (21 x 20 x 20) = 8,400 cubic inches.
3. If the result exceeds 1,728 cubic inches, divide the result by 194 and round up to the next
whole number to determine dimensional weight in pounds:(8,400/194 = 43.29) 43.29 rounded up
to the next pound is 44.
4. The rate is based on the actual weight or dimensional weight, whichever is greater.
Round off (e.g., 20.75 rounded off to the next whole number is 21, and 20.25 rounded off is 20).
Round up (e.g., rounding up either 44.2 or 44.8 to the next whole pound is 45).
In this example the dimensional weight for this rectangular package to zones 5-8 is 44 pounds.
Priority Mail dimensional weight for nonrectangular shaped parcels to zones 5-8.
1. Measure the length, width, and height in inches at their extreme dimensions. Round off1 each
measurement to the nearest whole inch: (length = 30, height = 9, and width = 18).
2. Multiply length x height x width: (30 x 9 x 18) = 4,860 cubic inches.
3. Multiply the result by an adjustment factor of 0.785: 4,860 x 0.785 = 3,815.1 cubic inches.
4. If the final result exceeds 1,728 cubic inches, divide the result by 194 and round up2 to the next
whole number to determine the dimensional weight in pounds: (3,815.1/194 = 19.66) 19.66 rounded
up to the next pound is 20.
5. The rate is based on the actual weight or dimensional weight, whichever is greater.
6. If the dimensional weight exceeds 70 pounds, the package pays the 70 pound rate.
Round off (e.g., 20.75 rounded off to the next whole number is 21, and 20.25 rounded off is 20).
Round up (e.g., rounding up either 44.2 or 44.8 to the next whole pound is 45).
In this example the dimensional weight for this nonrectangular package to zones 5-8 is 20 pounds.
First-Class Mail Examples
Letters                            Flats
Weight    Current   May 14, 2007   Weight      Current   May 14, 2007
1 ounce      39¢        41¢         1 ounce       52¢        80¢
2 ounce      63¢        58¢         7 ounce      $1.83      $1.82

3 ounce      87¢        75¢        13 ounce      $3.27      $2.84




                                   Parcels
                                   Weight      Current   May 14, 2007
                                    1 ounce       52¢        $1.13
                                    7 ounce      $1.83       $2.15
                                    13 ounce     $3.27       $3.17
Postage Savings Tips

           Keep first-class postcards to a maximum
            of 4 ¼” x 6”
           Fold items normally placed in a 9 x 12 envelope
            in half and mail in a 6 x 9 envelope
           Redesign mail pieces to meet letter-mail
            dimensions
           Letter and flat-mail pieces should be
            rectangular, not square
           When designing letter mail, the length divided
            by the height should be between 1.3 and 2.5 to
            avoid a surcharge
First-Class Mail Weight Examples
 - the following table illustrates examples of how many pages of 20 pound
copy paper can be placed in an envelope at each ounce increment
 - when possible, fold pages to fit into a letter-size or 6x9 envelope
 - if the thickness of a letter-size or 6x9 envelope is more than ¼ inch thick, it
will be charged flat-size postage
 - this table is an example only and depending on stock used actual weights
may vary

                            #10 Letter                          9x12 Manila Clasp
        Weight                               6 x 9 Envelope
                            Envelope                            Envelope
            1 ounce                5                 4                   2

            2 ounces              11                10                   8

            3 ounces              17                16                   14

           3.5 ounces             20                19                   17
        Each additional           n/a               n/a             6 pages/oz
Special Services – Domestic Mail
  Item                                    Current          May 14, 2007

  Certified Mail                                $2.40              $2.65
  Express Mail up to ½ pound                   $14.25             $16.25
  Return Receipt                                $1.85              $2.15

  Registered Mail up to $100                    $8.45             $10.15

  Insured Mail up to $50                        $1.35              $1.65

  Delivery Confirmation – Priority Mail             $.50            $.65
Forever Stamp

     The Forever Stamp will be available only in booklets of 20
     The postage value of the Forever Stamp is always the
      domestic First-Class Mail single-piece 1-ounce letter price
      that is in effect on the day of mailing.
     The Forever Stamp will be valid for mailing any future 1
      ounce single-piece First-Class letter regardless of the price
      at the time of mailing
     The Forever Stamp or any nondenominated stamp (except
      those that bear unique markings, such as First-Class
      Presort and Nonprofit Organization) may be affixed to
      items that are sent to foreign countries. Since international
      postage prices are higher than comparable domestic prices,
      additional postage must be affixed if stamps are used on
      international mail.
Standard Mail Significant Changes
     Create distinct prices for letters, flats and parcels
     Addition of new “Not Flat-machinable” category
Standard Mail (Bulk Mail)
           Nonprofit Letters                             $.164

           Nonprofit Flats                               $.389

           Nonprofit Not-flat Machinable                 $.902
               Not-flat Machinable pieces are those that fall
                within size limits for flats but do not meet
                flexibility or deflection standards, i.e. they are
                too rigid or too flimsy to run on USPS
                automation equipment
Standard Letter-mail Dimensions


                                                 Minimum         Maximum


                                    Length*      5 inches        11-1/2
                                                                     inches


                                    Height       3-1/2 inches    6-1/8 inches



                                    Thickness    0.007 inch      1/4 inch




      Maximum Weight: 3.3 ounces
      Standard letters exceeding 3.3 ounces will be charged
      Not Flat-machinable postage

      *Length is the dimension parallel to the address as read
Standard Flat-mail Dimensions


                                                                 Minimum           Maximum

                                              Length*            6 inches          15 inches


                                              Height             5 inches          12 inches


                                              Thickness          .009 inch         3/4 inch



      Maximum weight: 16 ounces
      Flats must be rectangular and flexible, and meet deflection standards. Pieces that fall
      within size limits for flats but do not meet flexibility or deflection standards, i.e. they are
      too rigid or too flimsy to run on USPS automation equipment, will be charged as not
      flat-machinable. Flats exceeding size maximums will be charged parcel rates.

      *The length of a flat-size mail piece is the longest dimension. The height is the
      dimension perpendicular to the length.
Automation Flat Criteria
   Size Requirement: minimum 5 x 6 x .009 inches – maximum 12 x 15x .75 inches
          For bound or folded pieces, the edge perpendicular to the bound or folded
          edge may not exceed 12 inches.
   Maximum Weight: 16 ounces
   Shape Requirement: Must be rectangular
   Uniform Thickness: The contents must be uniformly thick so that any bumps, protrusions,
   or irregularities do not cause more than 1/4 inch variance in thickness
   Prohibitions: Protrusions - Clasps, strings, buttons, or like materials, or other protrusions
   that impede or damage mail processing equipment are prohibited.
   Flexibility Requirement: Must meet flexibility requirements
   Deflection Requirement: Test as follows:
          For pieces 10 inches or longer:
          1. Place the piece with the length perpendicular to the edge of a flat
        surface and extend the piece 5 inches off the surface. Turn the piece around and
        repeat the process.
          2. The piece is automation-compatible if it does not droop more than 4 inches.
        For pieces less than 10 inches long:
          1. Place the piece with the length perpendicular to the edge of a flat surface and
        extend the piece one-half of its length off the surface. Turn the piece around and
        repeat the process.
          2. The piece is automation-compatible if it does not droop more than 1 inch less
        than the extended length. Example: 8 inch piece would extend 4 inches off the edge
        and must not droop more than 3 inches.
International Mail
New International Mail Categories
 Service                          Delivery Time        Available Services
                                                          Track & Trace
 Global Express Guaranteed          1-3 days       Service Guarantee to Select
                                                           Destinations
                                                  Tracking to Major Destinations
                                                   Service Guarantee to Select
 Express Mail International         3-5 days
                                                           Destinations
                                                   Insurance for $100 Included
                                                  Tracking to Major Destinations
 Priority Mail International       6-10 days           Insurance Available
                                                  Flat-Rate Packaging Available

 First-Class Mail International    7-14 days      Registered Service Available
International Mail Rates
- Ranges indicate low & high prices and vary by destination.
  Prices separated by a slash indicate prices for: Canada & Mexico/All Other Countries


       Global Express Guaranteed                        Express Mail International
        Weight                May 14, 2007               Weight                May 14, 2007
        ½ pound               $28.50 to $75              ½ pound               $19.75 to $25
        1 pound                 $41 to $93               1 pound               $22.50 to $32
        5 pounds               $55 to $152               5 pounds              $30.25 to $52
        Flat Rate              Not Available             Flat Rate               $22 / $25

       Priority Mail International                      First Class Mail International
        Weight                May 14, 2007               Weight                May 14, 2007
        1 pound               $10.20 to $21              1 ounce                $.69 / $.90
        5 pounds              $18.70 to $38              2 ounces             $1.00 to $1.80
        Flat Rate Env            $9 / $11                8 ounces             $2.86 to $7.20
        Flat Rate Box            $23 / $37               Flat Rate             Not Available
Special Services - International Mail

   Item                                  May 14, 2007
   Return Receipt                                $2.15
   Registered Mail                              $10.15
   Insurance – Priority Mail up to $50    $1.65 / $2.40
Postcards - International Mail

   International Postcards                       May 14, 2007
   Canada & Mexico                                               $.69
   Republic of the Marshall Islands &
                                                                 $.52
   Federated States of Micronesia
   All Other Countries                                           $.90



                                        International Postcards Dimensions

                                                    Minimum             Maximum
                                        Length      5-1/2 inches        6 inches

                                        Height      3-1/2 inches        4-1/4 inches

                                        Thickness   0.007 inch          0.016 inch
International Mail – Significant Changes
         Elimination of Economy (surface) mail except for qualified M-Bag
          shipments.
         Introduction of Flat-rate packaging for Express Mail International and
          Priority Mail International
         Flexible use of Express and Priority packaging for domestic and
          international mail.
         Priority Mail International Flat-rate envelope limited to 4 pound
          maximum.
         Priority Mail International Flat-rate box limited to 20 pound
          maximum.
         Written communications having the nature of current and personal
          correspondence are not permitted to be sent Priority Mail
          International unless they are mailed in the Priority Mail International
          Flat-rate envelope.
         Insurance is available for Priority Mail parcels only. Ordinary Priority
          Mail includes indemnity coverage against loss, damage or rifling up
          to maximum amounts set by the USPS based on fees paid.
         Registered mail service is available for items sent via Priority Mail
          International Flat-rate Envelope, First-Class Mail International or
          Free Matter for the Blind.
         Return receipt is available for Express Mail International, insured
          and registered items.
         Not all countries permit the use of all special services. Please check
          with Mail Service at 491-6529 if you wish to use any special services
          such as insured, registered or return receipt.
Customs Forms – International Mail
 Mail Category                                  Declared Value   Required Form      Comment
 Global Express Guaranteed                      All values       Mailing label
 Express Mail International                     All values       2976 or 2976-A     Please call Mail Service at 491-6529 to
                                                                 Unless otherwise        determine which form is necessary
                                                                      specified          based on destination country, weight
                                                                                         and contents.
 Priority Mail International Flat-Rate          Under $400       2976               Maximum Weight: 4 pounds
       Envelope items that:
       Weigh less than 16 ounces and do not
       have potentially dutiable contents OR
       weigh less than 16 ounces and have
       potentially dutiable contents with a
       declared value of less than $400
 Priority Mail International Flat-Rate          All values       2976-A*            Maximum Weight: 4 pounds
       Envelope items that:
       Weigh 16 ounces or more, regardless of
       content or
 Priority Mail International –                  All values       2976-A*            All items mailed in Priority Mail International
                                                                                           packaging boxes, or other packaging
                                                                                           EXCEPT Priority Mail Flat-rate
                                                                                           Envelope or bearing a Priority Mail
                                                                                           Sticker or marked with the words
                                                                                           “Priority Mail” are considered parcels.
Customs Forms – International Mail, continued
      Mail Category                              Declared Value            Required Form          Comment

      First-Class Mail International items       n/a                       None
            that:
            Weigh less than 16 ounces and do
            not have potentially dutiable
            contents
      First-Class Mail International items       Under $400                2976
            that:                                $400 and over             2976-A*
            Weigh less than 16 ounces and
            have potentially dutiable contents
      First-Class Mail International items       All values                2976-A*
            that:
            Weigh 16 ounces or more
      Free matter for the blind                  Under $400                2976
                                                 $400 and over             2976-A*
      M-bag                                      Under $400                2976
                                                 $400 and over             2976-A*

       * Priority Mail International, First-Class Mail International, M-bags, Matter for the Blind
       If the value of the contents is less than $400.00, affix Customs Form - PS Form 2976 (green label) to the exterior of the mail
       piece. If the value of the contents is $400.00 or more, affix the upper portion of the green customs label Customs Form - PS
       Form 2976 to the exterior of the mail piece and place a completed Customs Declaration and Dispatch Note - PS Form 2976-A
       inside the package.
       Express Mail International Shipments
       The customs form requirement for EMS shipments varies by country. Use PS Form 2976 Customs Form or PS Form 2976-A
       Customs Declaration and Dispatch Note as specified by the country. Please call Mail Service at 491-6529 for additional details
       customs requirements in the country of destination.
       Priority Mail International NOT packaged in Priority Flat-rate Envelope
       Regardless of value or contents, all items mailed as Priority Mail International and are packaged in any packaging other than
       the Priority Flat-rate Envelope must bear a completed PS Form 2976-A Customs Declaration and Dispatch Note that is inserted
       into Envelope for PS Form 2976-E.
Questions
  Korina Brim, Manager
     Mail Distribution
    & Mail Production
         491-6709
Korina.Brim@colostate.edu
     cr.colostate.edu

								
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