Postal Rates Raised

Postal Rates Raised for 2nd Time

For the second time this year the cost of postage was increased. Although the basic 34-cent rate did not change, other charges increased on July 1 including the cost of sending postcards, magazines and newspapers.

The rates for newspapers increased between 1-3 percent, on top the 6-9 percent increase that went into effect in January of this year. Newspapers’ shopper mail rates also saw an average increase of 1.4 percent.

These latest increases will jump the in-county non-automation piece rate by 2.01 percent and in-county auto-flats by 1.45 percent. Standard enhanced carrier route charges increased by 1.3 percent.

Newspapers need to obtain the new postal form 3541 with the new rates in order to be in compliance after the changes took effect.

The USPS Board of Governors voted unanimously to increase the rate. The Postal Service is currently facing the possibility of a $2 billion shortfall, with losses totaling $422 million so far. According to USPS Chief Financial Officer Richard Strasser, the July 1 increase is expected to add $200 million to Postal Service revenues.

The next rate case filing has been delayed until September-October and another increase is not expected until 2002.