It’s budget season in corporate America. We’ve been getting calls and emails lately about the January, 2023 US Postal Service (USPS) rate increase. The chart above was released at the July Mailer’s Technical Advisory Committee. The expected ranges for most market-dominant products are increases of 4.1% to 4.3%.
July’s inflation rate (0.0%) was lower than June’s (1.3%), which is good news for ratepayers. Most mailers can plan to use the lower 4.1% in their planning. However, certain products (flats, periodicals) may still have an additional 2% increase to cover costs.
Around the subject of inflation, the USPS Office of Inspector General (OIG) released a white paper on that subject. Entitled Inflation and the US Postal Service, the paper reviews inflation’s impact on cost-of-living adjustments (COLAs) for USPS employees, the costs of products and services, and fuel prices.
In product news, the USPS filed a request to delay the proposed classification changes designed to enhance and expand the First-Class Package Service (FCPS) product. Originally set to take effect in January 2023, the USPS is planning to make the changes at a later date next year.
To align with the Delivering for America plan, the USPS announced it was ending the open area mail processing (AMP) studies to consolidate mail processing facilities. Future consolidations and closures will be part of the new operating model to be established.
On Tuesday, President Biden signed into law the Inflation Reduction Act. The law contains $3 billion for the USPS to further electrify the delivery fleet. The funds are to be divided between new vehicles ($1.3 billion) and the infrastructure for charging and other support ($1.7 billion).
Holiday surcharges aren’t just for traditional carriers. This week Amazon announced the “2022 Holiday Peak Fulfillment Fee”. From October 15, 2022, to January 14, 2023, the fee will be an average of $0.35 per item sold.
The print and mail industry is still struggling with paper supply issues. On Thursday, September 1, 2022, the National HQ Postal Customer Council Program Office will be hosting a webinar on Paper and the Supply Chain Gang. The speaker will be Greg Lovensheimer, Executive Vice-President and Chief Operating Officer, Millcraft. Mr. Lovensheimer is an excellent presenter, and this webinar should be a “don’t miss” on your calendars.
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