News

February 28, 2007

USPS Proposed Rate Change -- Shape-Based Pricing Initiative
Announcement

The USPS has proposed a rate change for May 2007 in order to face rising costs. The proposed 2007 USPS rate change is much different than any previous rate change. Instead of simply increasing postage rates based on mail class or weight, they are now calculating postage based upon the size, shape and thickness of the mail, in addition to the weight. These changes are being classified as Shape-Based Pricing.

This is actually the 1st proposed USPS rate change since 2001; the 2006 rate change was a result of a 2003 law requiring the USPS to place $3.1 billion in escrow. This new, USPS proposed, Shape-Based Pricing initiative is scheduled to go into effect in May 2007.

The USPS is migrating to a Shape-Based Pricing structure to create a more efficient mail system. The USPS has assessed their operation, identifying the items that both add and reduce costs, and have built their Shaped-Based price structure accordingly, thereby introducing a rate change for different mail types and classes. The USPS has stated that these changes will position themselves positively for future growth.

To learn more about these changes, click here to continue reading or click here to contact Midwest Mailing & Shipping Systems, Inc.