The U.S. Postal Service has proposed new 2012 shipping rates that are expected to start on January 22, 2012.
The average increase for all shipping classes is 4.6%. Private carriers such as UPS and FedEx have already announced price increases for 2012. UPS announced last week they are increasing prices on ground and air shipments by an average of 4.9%. In September, FedEx announced it would increase rates by an average of 5.9%.
The Postal Regulatory Commission (PRC) must review and approve the new rates before they become effective January 22, 2012. This is the same day the new USPS mailing service prices will take effect.
New USPS Shipping Products for 2012
- A new, larger Priority Mail Regional Rate Box C will be introduced that will hold up to 25 pounds. Box size is expected to be 12” x 12” x 15”.
- A new Express Mail Flat Rate Box will be introduced that holds up to 70 pounds. Cost will be $39.95 for domestic mailings.
- Package Intercept will be introduced for commercial mailers. Customers can request mail be intercepted before final delivery is attempted to the initial delivery address. The shipment can be returned to sender, held for pick up at a Post Office, or redirected to an alternate address.
- First Class Package Service (aka First Class Parcels) will now include the Intelligent Mail package barcode and will provide free visibility to these parcels.
Priority Mail retail (Post Office) prices will increase an average of 3.1% in 2012.
USPS retail rates for Express Mail will increase an average of 3.3% in 2012.
Prices for Parcel Select, the U.S. Postal Service’s bulk ground shipping product, will increase an average of 8.5%.
First Class Package Service (formerly known as First Class Parcels)
First Class Parcels were recently transferred to the “competitive product list” which allows the mail class to be eligible for Commercial Base pricing. The mail class was renamed First Class Package Service and will see an average increase of 3.7% in 2012.
The overall increase for Priority Mail International will be 8.7%.
Express Mail International will increase by 11.6% and will introduce a two new Express Mail International Flat Rate Boxes with a maximum weight of 20 pounds. Customers will pay a flat rate of $59.95 to Canada and $74.95 for all other countries.
Global Express Guaranteed prices will rise by 6.0%.
2012 Rate Change Information
Effective January 2, 2012, the published rates for our services have increased; however, this increase enables UPS to continually expand and improve our portfolio of solutions, helping us serve you and making the service you offer your own customers even better.
UPS Ground services increased a net 4.9% through a combination of a 5.9% increase in rates and a 1 percentage point reduction in the UPS Ground fuel surcharge.
UPS Air and International services increased a net 4.9% through a combination of a 6.9% increase in rates and a 2 percentage point reduction in the UPS Air and International services fuel surcharge.
UPS Air Freight®
UPS Next Day Air® Freight and UPS 2nd Day Air® Freight rates for shipments within and between U.S., Canada and Puerto Rico increased 5.9%. UPS 3 Day Freight® rates remain unchanged.
To learn more about UPS Air Freight rates, visit ups.com/airfreightrates.
UPS Freight announced a general rate increase covering non-contractual LTL shipments in the U.S., Canada and Mexico. The general rate increase took effect on August 1, 2011.
To learn more about UPS Freight rates, visit ltl.upsfreight.com.