U.S. Postal Rates Change In January
Posted on November 15, 2018 by VSC
The U.S. Postal Service will raise many, but not all, of its rates on January 27, 2019. The Postal Regulatory Commission,
an independent agency with oversight, approved the entire USPS proposal on November 13, 2018.
The price for mailing a letter will rise by 5 cents, to 55 cents for the first ounce. However, the price for additional ounces
will go down, from 21 cents to 15, “so a 2-ounce stamped letter, such as a typical wedding invitation, will cost less to mail, d
ecreasing from 71 cents to 70 cents,” the USPS said in its October 10th press release announcing its request.
There are two types of mail handled by the USPS: Market Dominant and Competitive. “Market Dominant” are services
where the agency has a near-monopoly, such as delivering letters and advertising flyers. “Competitive” are services
where the USPS is not the only supplier. Its competition includes companies like United Parcel Service, DHL
and Federal Express.
Market Dominant increases, by law, must be no greater than the rate of inflation, which in the past 12 months
was 2.5%. However, individual rates can rise more than that, so long as the average is at or below t
he Consumer Price Index.
The prices for Competitive products, on the other hand, must not be subsidized by the revenue from
Market Dominant products; that is, as a group, Competitive products must pay their own way.
“The Commission found that the rates for both classes of mail meet all statutory requirements
and may take effect, January 27, 2019, as planned,” said the PRC.
We can expect new Priority Mail and Express Mail stamps, as well as some definitives, on the date t
he new rates go into effect, January 27, 2019.
One major change, however, is in “First-Class Package Service—Retail,” which the USPS calls
“a lightweight expedited offering used primarily by businesses for fulfillment purposes.”
It includes tracking, at about half the cost of Priority Mail.
Right now, these packages are a flat rate of $3.50 for up to four ounces. After late January, t
he rate would range from $3.66 to $4.06 for up to four ounces, depending on distance.
The service includes tracking.
To determine a domestic zone, use this tool on the USPS website. Choose the second tab,
“Get Zone for ZIP Code Pair.”
