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March 12, 2008

USPS Sets New Rates, Volume Shipping Discounts

Logousps Starting in mid May, users of the US Postal Service will be able to get volume discounts for parcel shipments. The US Postal Regulatory Commission has authorized the USPS to offer discounts for its competitive parcel products.

Freightdawg guest writer, Jerry Hempstead, wrote a great article on this subject back in February that outlines what this change in USPS pricing means to the parcel market.   Additionally, the USPS is selling Forever Stamps which remain useful as prepaid transportation forever without additional postage. 

  clipped from www.businessweek.com

Beginning May 12, shippers using Express Mail, Priority Mail and certain parcel services will be able to get discounts for large and medium volume contracts, the agency said Wednesday.

The Postal Service had announced last month that the price for sending first-class mail would go up a penny -- to 42 cents -- on that date. But it did not announce new shipping rates at the time.

The February announcement did prompt people to stock up on Forever Stamps, which will sell for 41 cents until rates go up, but will remain valid for postage after that date without any additional stamps. Sales of Forever stamps jumped $95 million in February, compared to January.

Most of the newly announced changes apply to businesses, but flat rate prices for residential and other small customers will still be available, and they will be eligible for a 3 percent discount for buying postage online.

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