Postal Rates to Increase July 1

Postal Rates to Increase July 1

The Postal Board of Governors voted May 8 to raise postal rates on July 1. The higher ounces of first class are increasing by two cents and postcards by one cent.

The impact on newspapers using the Postal Service will range between 1 – 3.7 percent in increases depending upon the mail preparation used by the newspapers. Newspapers’ shopper mail rates will also see an average increase of 1.4 percent. This rate hike is in addition to the 6-9 percent increases that went into effect in January.

The 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 will increase by 1.3 percent.

"This increase shows a disregard by the Board of Governors for the needs of its smallest, most dependent customers," said Ken Allen, National Newspaper Association executive vice president and CEO. "Mail service for newspapers is down, the economy is declining, and this Board is unilaterally increasing rates. No one is taking responsibility for the inefficiencies and overspending that have led to rising costs for the Postal Service."

The governors pointed to a weakening economy, soaring fuel costs and personnel expenses as reasons for an increase after the January rate hike.

The board has already asked Postal Service attorneys to prepare for another full-scale rate increase request before the Postal Rate Commission in July.

Postal expert Bill Sims, corporate circulation director for Chesapeake Publishing Corp., told the MDDC Circulation Committee May 10 that he anticipates new higher rates going into effect next January.