Postal Changes Coming in 2001

Postal Changes Coming in 2001

     Newspapers are facing several changes to current postal regulations and rates starting in January 2001.
     In November the Postal Rate Commission announced its recommended new rates, cutting the proposed increase for within county newspapers from 8.6 percent to 6.8 percent and from 14.4 percent to 9.9 percent for outside-county newspapers.
     "We are pleased with these increases as opposed to what could have happened," said Bill Sims, corporate circulation director for Chesapeake Publishing.
      The National Newspaper Association took an active role in the rate case on behalf of community newspapers.
      "It’s never good news to have higher rates," said Kenneth Allen, NNA’s executive vice president and CEO. "But, given the circumstances we all faced in this case, the future looks much rosier than it did last January when these rates were first proposed."
       In addition to decreasing the proposed rate for periodicals, the Postal Rate Commission rejected a proposal for big rate reductions for heavy junk mail. This decision was applauded by the Newspaper Association of America, which was pleased junk mailers will not get a large rate decrease.
      According to Sims, the rate decrease is important, but the big thing is that the commission also extended to newspapers a new exceptional dispatch discount for hauling mail to surrounding towns for faster service.
      "Many papers, including ourselves, took papers to the post office to enhance delivery," he said. "Now we can take a discount for work we are already doing."
      The discount will amount of 3.1 cents off the pound rate and a half cent off the piece rate, a total that annually could save a newspaper $50 to $75 per copy in postage that has previously been paid.
       Two other new rules were expected to take effect this fall, but now will be implemented in 2001.
      One new rule requires periodical packages of six or more pieces to a carrier route to be placed in some form of delivery order, either walk-sequence or "line-of-travel." Sequencing will be a requirement for the basic carrier route rate in 2001.
      Max Heath, chairman of the NNA Postal Committee, recommends implementing sequencing now. Mail not sequenced would pay a current rate of 8 cents, versus 4.3 cents for mail qualifying for carrier route rates.
      NNA recommends that members stick with exact walk-sequencing since it is readily available locally, according to Heath. Line-of travel sequencing, which is a less precise form of sequencing, will not qualify newspapers for the high-density rate. Newspapers should strive to drop as many copies as possible from the basic carrier route rate to the high density one, according to Heath. This will help hold down the basic carrier route rate.
       There is also software available that can help with this. Heath recommends making the investment in good software and a machine to run it, if necessary.
      "You must face the fact that in this increasingly complex world, modern postal software is a must," he stated in a recent column. "It should sort more correctly and calculate rates correctly, as well as bar code, help sequence, and calculate the 25-percent, in-county high-density rate."
       The second rule going into effect will require that carrier route sacks with fewer than 24 pieces be combined into a "mixed carrier routes" sack to a 5-digit office and to us e a 5-digit scheme that combines certain 5-digit offices in the same sack. It is aimed at reducing the volume of sacks and related handling costs and should also lower mailers costs of sack preparation.
      NNA will have a new 2001 Postal Savings handbook available for members in January. Questions about postal issues can be directed to Bill Sims at (410) 398-3311, NNA’s Senny Boone at (800) 829-4662, or Max Heath at (502) 633-4334 ext 218.