Trends in Print and Mail

For over 6 months, mailing industry professionals – through their associations and as individuals – have expressed their concerns about a second postage rate increase in 2021. Through group calls with the US Postal Service (USPS) leadership, meetings with the postmaster general, and many articles and blog posts, the message has been clear – a second rate increase in 2021 will cause harm. Annual budgets have been set, printers and mailers are just beginning to recover from the pandemic, and USPS service levels will be lowered in September.

Their efforts were for naught.

The last year has brought one challenge after another. The pandemic. Civil rights protests. A divisive election. Violent rioters in our nation’s capital.

The impact to the US Postal Service (USPS) was augmented by additional factors.

On Sunday, January 24, 2021, the new US Postal Service (USPS) postage rates and rules go into effect. Mailers mailers have less than a week to complete their final preparations.

This may be the last increase under the ratemaking rules established under the Postal Accountability and Enhancement Act (PAEA) of 2006. Under the PAEA, the rates for Market Dominant products – First-Class Mail, USPS Marketing Mail, Periodicals, etc. – were limited by the Consumer Price Index (CPI).

After completing their 10-year review, the Postal Regulatory Commission (PRC) modified the ratemaking rules. On November 30, 2020, the PRC issued Order No. 5763 – Order Adopting Final Rules for the System of Regulating Rates and Classes for Market Dominant Products. Under the new system, the USPS will have additional rate authority to raise rates. The factors include a combination of delivery density and retirement-related expenses. The rules went into effect on January 15, 2021 and may be used by the USPS to raise rates above CPI.

There are currently four legal appeals on the PRC order, including one by the USPS. Industry advocates claim that the PRC overstepped its authority, while the USPS is appealing the narrow scope of the order. Until the courts issue a ruling, the order remains in effect.

The current USPS price list – Notice 123 – is available on Postal Explorer as either an HTML or PDF document. Until January 24, the new rates are available for download as either an Excel or PDF file. The Excel file has a tab for each rate class, complete with Zone and weight tables.

Even with the increase, postage rates are a great deal. The USPS retail rates for letter mail remain lower than our trading partners – including the countries that have privatized their posts. This is the current prices for one-ounce stamps (based on exchange rates in effect on January 17, 2020):

Last month, Mr. Louis DeJoy began his service as the 75th Postmaster General (PMG) of the United States and Chief Executive Officer of the United States Postal Service (USPS). On his first day in office, PMG DeJoy released a video praising USPS employees and recognizing outgoing PMG Megan Brennan. It was an upbeat message that was received well by employees and customers alike.

There have been no public statements by PMG DeJoy since then. Just silence.

Last April, during a House Oversight Committee hearing, Representative Mark Meadows (R-North Carolina) took Postmaster General (PMG) Brennan to task for not delivering a 10-year strategic plan to Congress that was promised to be handed over in January. A second delivery date was also missed. The congressman was not happy.

Representative Meadows had worked with his Democrat colleagues to draft bi-partisan postal reform bills. As he said, the PMG’s actions were turning an advocate into an adversary. At the end of the discussion, the Committee Chair, the late Representative Elijah Cummings, directed that the plan be delivered to the committee no later than July.

At that summer’s Mailers' Technical Advisory Committee (MTAC) meeting, PMG Brennan was asked when the strategic plan would be published. The PMG said that the Oversight Committee had the plan, and that it would be released to the industry “in due time”.

On Sunday, January 26, 2020, the new US Postal Service (USPS) postage rates and rules go into effect, so mailers need to act now to be properly prepared. For most mailers, the first day of mailing under the new rates will be Monday, January 27, 2020.

This rate case was announced on October 9, 2019. Set to go into effect on January 26, 2020, the new rates represent about a 1.9% increase over the current prices for mailing, or “Market Dominant” products and about a 4% increases for shipping, or “competitive” products.

It’s impossible to predict the future, but when there are storm clouds in the sky, you can be pretty sure it’s going to rain. Lightning and downpours can be seen in the distance, inching their way forward. We brace for the worst.

Of course, a good rain helps farmers grow crops. Watersheds and aquifers are refreshed, increasing the supply of clean water for our homes. Grasslands and forests are rejuvenated, staving off brutal fires.

There are clouds in the skies for the print-mail industry.

On October 9, 2019, the United States Postal Service (USPS) filed R2020-1: Notice of Market-Dominant Price Change. The Postal Regulatory Commission (PRC) will now review the rates to ensure they’re in compliance with the relevant statutes. The expected implementation of the new rates is on January 26, 2020.

In August, the Senate approved three nominees to the US Postal Service (USPS) Board of Governors (Board), bringing the total number of appointed governors to 5, meaning that the Board now has a quorum for the first time since 2014. There was considerable anticipation towards their first meeting, scheduled for October 3, 2019.

On Sunday, January 27, 2019, the new US Postal Service (USPS) postage rates and rules go into effect, so mailers need to take action to be properly prepared. For most mailers, the first day of mailing under the new rates will be Monday, January 28, 2019.