Industry Updates

Move Update Census Based Assessments – New Date, April 2018

After January 2018, USPS will be changing the method for measuring Move Update compliance to a Census based approach.  The Census Method utilizes Mail Processing scans to determine compliance.  Results from the census verification method are displayed on the Electronic Verification tab of the Mailer Scorecard.  As a reminder, mailers have been encouraged to review their Move Update compliance since May 2017 after the reports were tested, validated, and declared ready for use by an Industry Task Team.

On Jan 9, 2018 USPS filed a proposed Federal Register Notice (FRN) to introduce the new Green & Secure Alternative Move Update Method. The Green and Secure alternative method aims to reduce the handling cost of undeliverable-as-addressed (UAA) mail by minimizing volume of return-to-sender mail. For Mailers participating in Green & Secure Alternative Method, qualifying UAA mailpieces bearing an ACS Change Service Requested STID (First-Class Mail and USPS Marketing Mail) or a Secure Destruction STID (First-Class Mail only) will be displayed as warnings and not be included in the error threshold.

To allow the Industry additional time to respond to the proposed FRN and enroll in Green & Secure the USPS has delayed the Move Update Census assessments until April 2018.

Census based assessments will commence in April 2018, based on March data, for mailpieces determined to be over the established threshold for the calendar month.  Mailers are encouraged to review their results to ensure compliance with Move Update standards.


USPS Releases 2018 Q1 Financial Results

The United States Postal Service released its 2018 first quarter fiscal year (October 1 through December 31, 2017).

As expected, the data revealed continued downward trends in volume and revenue, however costs were not down.

For the quarter, the Postal Service reported a controllable income (i.e., revenues less costs it can control) of $353 million, down from $522 million at the end of PQ I/FY 2017. Total revenue for the quarter was $19.2 billion, essentially unchanged compared to the same quarter last year.

  • First-Class Mail: -$309 million (-4.4%), -646 million pcs. (-4.1%)
  • Standard Mail: -$248 million (-5.3%), -1.3 billion pcs. (-5.9%)
  • Shipping and Packages business increased $505 million, or 9.3 percent, during the quarter.

Once the “uncontrollable” costs are included, the true bottom line was a loss of $540 million, considerably worse than the $1.438 billion surplus posted a year ago.

 


Deadly Snowfalls, a Nasty Winter Continues

Storms that caused deadly pileups in the Midwest push east and there is more on the way. Winter Storm Liam is expected to spread a mess of snow, ice from the plains into the Midwest, Northeast through Wednesday night.

Delays are expected as road conditions continue to be problematic. As always, Fairrington will update clients directly impacted by the weather.

https://weather.com/storms/winter/news/2018-02-05-winter-storm-liam-snow-ice-forecast-rockies-plains-midwest-northeast


PRC Issues FY 2017 Annual Report to the President and Congress

The Postal Regulator Commission posted the following Press Release.

Washington, DC – Today the Postal Regulatory Commission (Commission) released its Annual Report to the President and Congress summarizing the activities undertaken by the Commission during Fiscal Year (FY) 2017. Each year, the Commission is required to address in its report information concerning the operations of the Commission, including the extent to which regulations are achieving the rate setting objectives of the Postal Accountability and Enhancement Act (PAEA). The Commission’s report must also include an estimate of the costs incurred by the Postal Service to provide certain services that the Postal Service would not otherwise have provided except for the requirements of the law.

In Chairman Robert Taub’s letter preceding the Report, he states that the Commission is dedicated to fulfilling its mission of ensuring transparency and accountability of the Postal Service and fostering a vital and efficient universal mail system. To that end, FY 2017 was an exceptionally productive year for the agency. In addition to the Commission carrying out its regulatory responsibilities of reviewing and approving postal rates and new product proposals, and formal complaint adjudication, the Commission began the important process of evaluating the system for regulating rates and classes for Market Dominant products 10 years from the enactment of the PAEA as dictated by law. Commission findings from its review and proposed rules were released in late Fall 2017.

The Commission also implemented its 5-year Strategic Plan for 2017 through 2022 designed to direct continual improvement in operational quality and efficiency.

The FY 2017 Annual Report is available on the Commission’s website, www.prc.gov.


Jakki Krage Strako named Acting USPS Chief Customer and Marketing Officer and Executive Vice President

The Postal Service has announced Jacqueline (Jakki) Krage Straka will be detailed to the position of Chief Customer and Marketing Officer and Executive Vice President, effective February 3. In her current role as Vice President, Area Operations, Great Lakes Area, Jakki oversees a workforce of more than 61,000 employees, and is responsible for all aspects of operations, marketing, and customer engagement across five states in the Great Lakes Area.


Free Webinar: Postal Pricing and Impact of PRC 10-Year Review

The U.S. Postal Regulatory Commission (PRC) in early December released a proposed rule that would grant the Postal Service significantly more latitude in increasing prices. The proposal has received negative feedback from the industry, which has until March 1 to submit formal comments.

Idealliance seeks to educate and engage its members and the industry on January 18th to:

  1. Outline the key components of the proposed PRC rule and how it was constructed and why.
  2. Answer the question: Can we gain any insights from the recently released USPS 2017 Annual Compliance Review (ACR)?
  3. Explain how the industry is reacting and coalescing.
  4. Discuss the proposed PRC rule and its possible impact on postal reform and Postal Service pricing strategy.
  5. Seek support for an Idealliance survey to collect feedback on the proposed PRC Rule and its impact on mail supply partners and their customers.

Join us on January 18th for a critical webinar about the future of postal pricing.

Thursday, January 18
4:00 p.m. – 5:00 p.m. Eastern Time

Register


Presenters

Steve Colella
Stephen Colella is Vice President Postal Affairs for The Calmark Group. The Calmark Group, located in Bedford Park, IL, is a large mail service provider mailing in excess of 600 million pieces annually. Starting his career in 1973, Colella held a variety of management positions in production, customer service, sales and postal affairs. Colella has been involved with MTAC for over 20 years and now represents Idealliance at MTAC. He presently serves as the industry lead for the Emerging Technology & Product innovation Focus Area and incoming Co-Chair of the Idealliance Postal Operations & Technologies Council. Colella has an MBA from DePaul University and was a recipient of the USPS Industry Excellence Award for Progressive Mailing Practices in the Advertising Mail and Print Industry.

Rose Flanagan
Rose Flanagan has over 39 years of experience in the mailing industry working in postal affairs, production, scheduling, client relations and logistics. As an active industry participant, Flanagan is completing her two-year term as Idealliance Postal Operations & Technologies Co-Chair in March 2018 and is the newly re-elected MTAC Industry Leader for Marketing Mail and incoming Chairman of PostCom.

Tom Glassman
Tom Glassman started in the industry over 25 years ago and now serves as Director of Data Services & Postal Affairs with Wilen Direct. He believes, “Over the years, I have passionately fostered working together with other print and mailing companies and believe that giving back to the industry will keep it thriving and moving forward in good and bad times. I have learned a great deal from industry professionals and try to allow time every day to return what others have shared with me.” Glassman leads various MTAC workgroups and serves as the MTAC Representative for Idealliance. He has been instrumental chairing the Idealliance Mail & Postal Education Working Group and launching the MailPro® Training Certification with over 1,000 professionals in the program.

Paula Stoskopf
As head of Postal Affairs for LSC Communications and Fairrington, Paula Stoskopf’s role is to ensure client and organizational readiness for new and changed regulations that impact the industry. Paula has over 18 years of expertise in product management and direct marketing solutions and focuses on helping organizations successfully communicate with their targeted audience. These have included domestic and international address quality, list enhancement, and postal savings tools for both the commercial and government contract markets. She has also served as an Offshore Development Relationship Manager both remotely and on-site to lead the successful migration of multiple projects to a global development center. She serves as the Secretary of the Board for the Association of Postal Commerce (PostCom), represents the Data and Marketing Association (DMA) on the Mailers’ Technical Advisory Committee (MTAC) and is the incoming Co-Chair for Idealliance Postal Operations and Technologies Council.

David Steinhardt
David Steinhardt leads Idealliance, a 3,000+ member not-for-profit international association for the Visual Communications and Media Industry. Steinhardt started his career in the industry at the Graphic Communications Association (GCA) more than 30-years ago. Idealliance concentrates on cross-industry integrated know-how and the global total supply chain, delivering best-in-class specifications, certifications, training, and research that drive education and innovation for the future of our industry. One of his core areas of work and expertise — with more than 20 years of experience — is facilitating and managing the Idealliance Mail & Postal Portfolio through its working groups across mail supply chain partners and the USPS. With his leadership, the USPS presented Idealliance in 2007 the USPS Best in Class — Business Achievement for Successful Partnership. He is a member of the Coalition for 21st Century Postal Service.


California Mandatory Evacuations – Transportation Delays Likely

Rail and truck delays will likely result from the rapidly changing situation in California.

Parts of Santa Barbara County recently affected by wildfires are now under evacuation orders because of the rain.

With fears that burn scar areas could see large mudslides during the first rain event since a series of wildfires devastated the landscape in the fall months.

According to NBC News, A powerful Pacific storm covering the entire length of California knocked out power for thousands and threatened dangerous mudslides in communities near mountains stripped of protective foliage by drought-fueled wildfires.

Almost 3 inches of rain fell on downtown Los Angeles through Friday evening, more than double in one day the total of 1.2 inches it had gotten since July 1 — a stretch of nine months.

As always, Fairrington will update clients directly impacted by the weather.

 


Winter Continues to Freeze up Transportation Networks

Winter continues to freeze up transportation networks. The subzero temperatures in the Midwest, record snowfalls in many locations to ice in the Carolinas continue. Even a named storm for the new year, Grayson.

We are seeing delays of 24 – 48 hours. As always, Fairrington will update clients directly impacted by the weather.


USPS Files FY 2017 Annual Compliance Report

On December 29, 2017, the USPS filed their FY 2017 Annual Compliance Report, ACR.

The Postal Service is required to an ACR within 90 days after the end of each fiscal year (FY). It includes a variety of data on costs, revenues, rates, and quality of service, in order to “demonstrate that all products during such year complied with all applicable requirements” of title 39.

Report Summary:

  • Report demonstrates that the Postal Service maintained stead progress on most metrics, despite an environment of falling mail volumes.
  • Market dominant and competitive products were broadly in compliance with the requirements of chapter 36 over the course of FY 2017.
  • The Postal Service reduced the number of workshare passthroughs above 100 percent by eleven, and, in many cases, those passthroughs that remained above 100 percent either fit into one of the statutory exceptions or will be corrected when with the January 2018 price change.
  • The report outlines service performance improvements and customer satisfaction survey results

First Class Summary:

  • With the exception of Inbound Letter Post, all First-Class Mail products covered their attributable costs in FY 2017, with most of them contributing significantly to institutional costs.
  • First-Class Mail volume had been slowing in recent years, it accelerated in FY 2017, with the class losing 4.1 percent, or 2.5 billion pieces.
  • Four of the nine First-Class Mail Presorted Letters and Cards workshare discounts exceeded 100 percent of avoided costs: AADC Letters (117.6 percent), Automation Mixed AADC Cards (142.9 percent), Automation AADC Cards (133.3 percent), and Automation 5-Digit Cards (118.2 percent).

Marketing Mail Summary:

  • All USPS Marketing Mail products, other than USPS Marketing Mail Parcels and USPS Marketing Mail Flats, covered their attributable costs in FY 2017. As a class, USPS Marketing Mail covered its attributable costs and contributed significantly to institutional costs.
  • Parcels: covered 62.8 percent of its attributable costs in FY 2017, down from 63.8 percent in FY 2016.
  • Mail Flats: Covered 73.9 percent of its attributable costs in FY 2017, down 5.8 percentage points from FY 2016. Per-piece revenue rose modestly over the previous year, increasing 2.4 percent, but this was offset by a 9.7 percent increase in per-piece cost. The increase in cost was due in part to the migration of Flats Sequencing System (FSS) pieces from Flats to Carrier Route Flats, as a result of the Docket No. R2017-1 price change.
  • Letters: The FY 2017 passthroughs for DNDC and DSCF dropship letters were 152.9 percent and 161.9 percent, respectively. In Docket Nos. R2017-1 and R2018-1, the Commission accepted the Postal Service’s justification of these passthroughs, contingent on the Postal Service’s adherence to a plan to reduce the passthroughs by 10 percentage points in each market dominant rate case. The Postal Service continues to justify these passthroughs; it plans to recommend to the Governors a reduction of at least 10 percentage points in the next market dominant rate case

Periodicals Summary:

  • Cost coverage for the Periodicals class overall decreased in FY 2017, from 73.96 percent to 69.33 percent. In-County Periodicals declined in cost coverage from 70.07 percent to 67.16 percent, and Outside County Periodicals declined in cost coverage from 73.73 percent to 68.81 percent.
  • Revenue per piece for Periodicals as a whole decreased from 27.0 cents in FY 2016 to 25.9 cents in FY 2017, or 4.07 percent. At the same time, cost per piece increased from 36.5 cents to 37.4 cents, or 2.5 percent. The combination of these factors led to the FY 2017 decline in cost coverage.

From Deep Freeze to Record Snowfall

Subzero temperatures in the Midwest to the record snowfalls in Pennsylvania, will most likely bring transportation delays. As always, Fairrington will update clients directly impacted by the weather.

 


PRC 10-Year Review at a Glance – FAQ Sheet

For a print version, download your copy 10-Year Review FAQ. We will also update this new Frequently Asked Questions are identified.

For a more in-depth understanding, check out More than the 10-Year Review when Planning for the Future – A Wobbly Three-Legged Stool
It dives into not only the PRC’s proposal, understand the USPS Board of Governors situation as well as legislative considerations.

What is the PRC 10-Year Review?

In 2006, the Postal Accountability and Enhancement Act (PAEA) was put in place to regulate rates and classes for market-dominant products. Part of the law required the Postal Regulatory Commission, PRC, review the past 10 years of the rate and classification system to determine if the system achieved the goals of PAEA which were to create a flexible, stable, predictable, and streamlined ratemaking system that ensures the Postal Service’s financial health and maintains high quality service standards and performance.

What were the PRC’s key finding?

The PRC determined that some of PAEA objectives are being met:

  • Predictable, stable rates
  • Less burdensome process
  • Improved transparency
  • Some are not
  • Adequate USPS revenues
  • Pricing efficiency
    • Non-compensatory products
    • Workshare passthroughs

Is this a final determination or rule?

No, this is a proposal

What do does the PRC propose for the CPI cap?

The Commission proposal would maintain a price-cap system. The Commission determined that it is necessary to maintain such a mechanism to create predictability and stability, and seeks to build upon, rather than replace the CPI price cap by providing discrete amounts of additional rate authority.

What are the proposed increases?

  • 2% Over CPI: Proposes a 2% rate authority over the CPI cap for five years
  • 1% Performance-Based Authority: Proposes an additional 1% performance-based rate authority. The PRC divided the 1% point of performance-based rate authority between an operational efficiency-based standard (0.75 percentage points), and service quality-related criteria (0.25 percentage points).
  • 2% Non-Compensatory: For products that do not cover costs, the PRC proposes price increases that are 2% higher than other elements of the class.

What factors will be used to determine how the pricing authority will be applied?

In the Commission’s review they determined that over the past 10 years, the Postal Service set most discounts substantially above or substantially below 100 percent. The proposal includes passthrough bands:

  • 75-125% for Periodicals
  • 85-115% for all others

The proposal includes a three-year phase-in to bring all existing discounts into compliance.

What does this mean catalogs?

If the proposal moves forward, the 2% over CPI would be applied. An additional 1% is the Postal Service met the performance-based objectives. Rate authority is not applied equally across all rate cells. Instead, the authority has historically been applied to optimize revenue, applying to higher-volume sortations, or used to improve cost coverage.

The proposal includes passthrough bands of 85-115%. Dropship for Marketing Mail flats has many rate cells that are below 85% passthroughs. This may be an opportunity for a reduced impact as rates are adjusted to meet the goals of the proposals. Also, for Carrier Route, many passthroughs are also low. Solutions like co-mail to drive carrier route and high density will help reduce the impact for some mailers.

What does this mean for Marketing Mail Letters?

If the proposal moves forward, the 2% over CPI would be applied. An additional 1% is the Postal Service met the performance-based objectives. Rate authority is not applied equally across all rate cells. Instead, the authority has historically been applied to optimize revenue, applying to higher-volume sortations, or used to improve cost coverage.

The proposal includes passthrough bands of 85-115%.

What does this mean for magazines?

If the proposal moves forward, the 2% over CPI would be applied. An additional 1% is the Postal Service met the performance-based objectives. Rate authority is not applied equally across all rate cells. Instead, the authority has historically been applied to optimize revenue, applying to higher-volume sortations, or used to improve cost coverage.

For Periodicals, where the entire class is non-compensatory, the PRC proposes that USPS must use all available rate authority including an additional 2 percent as applies to non-compensatory products within classes that cover their costs.

The passthrough band is 75-125% with a three-year phase-in to bring all existing discounts into compliance.

What is the timeline?

Winter 2006: On December 20, 2006, the Postal Accountability and Enhancement Act (PAEA) was signed into law and created a modern system of regulating rates and classes for Market Dominant products. The PAEA also mandated that the Commission review this system 10 years later to determine if it is achieving the objectives established by Congress. December 20, 2016 was the ten-year anniversary of the PAEA.

Winter 2016: On December 20, 2016, the Commission issued an Order begin the review. The Order described the approximate structure and timeframe within which the Commission will complete its review, as well as defined the opportunities for public comment within the review.

Spring 2017: Initial comment period closed. During the public comment period of the ongoing rate review, the PRC received more than 70 comments.

Winter 2017: December 1, 2017: Commission issued an Order including its findings and, if necessary, preparatory rule-making information for any changes to the system. This begins a 90-day comment period.

Spring 2018: Comments are due no later than March 1, 2018. Reply comments are due no later than March 30, 2018.

That 30 days could extend longer. If it did move forward, the there is an anticipated 45 – 90 day implementation period. This is a very fluid situation. It could be as early as June or push into 2019. Most expect the proposal will change and we won’t see implementation in 2018.

How are comments filed?

Visit the PRC website to create an account for comment submission.

Watch Fairrington’s Industry News for the Latest Updates

 


More than the 10-Year Review when Planning for the Future

A Wobbly Three-Legged Stool

On December 1, 2017, the Postal Regulatory Commission, PRC, announced their 10-Year Review proposal. But the conversation needs to go beyond their findings. There are several forces at work to take into consideration when planning.

This article takes a deeper dive into not only the PRC’s findings beyond our December 1 posting. It also provides a recap of the USPS Board of Governors situation as well as legislative considerations. While independent discussions, the movement in one area may impact the others or compound the effects. For example, if legislation was passed during the comment period, it is unknown if the PRC would change their findings or if we could have a situation that adds proposed increases by the PRC to a partial exigent postage increase through legislation.

For planning, the approved January 2018 rate increase is the certain item.

The rest, a bit of a wobbly stool… Download More than the 10-Year Review when Planning for the Future.

 


USPS Move Update Reminder – Census Based Approach Nearing

Reminder, the USPS is changing the method for measuring compliance for meeting the Move Update requirement to a Census based approach.

This change was approved by the Postal Regulatory Commission in August. The Move Update filing is for a $0.08 per-piece assessment for noncompliance when the 0.5% threshold is exceeded.

The automated Assessment Process will begin on March 11, 2018 and will be based on February 2018 data.

Today the USPS measures compliance at an individual mailing level. The new method utilizes scans from Mail Processing Equipment to determine if addresses for First-Class and USPS Marketing Mail, letters and flats, have been updated within 95 days of the mailing date. Compliance will be measured for eDoc submitters across a calendar month.

The assessment process is outlined in the USPS Publication for Streamlined Mail Acceptance for Letters and Flats.


Southern California Wildfires

Southern California Wildfires Force Thousands to Flee. In the wake of massive fires, the USPS has distributed an industry alert.

Pacific Area – Wildfires Update – Sierra Coastal District

(California)

Updated: Wednesday December 6, 2017 @5:15 pm

The Pacific Area and Sierra Coastal District are reporting the following impacts related to wildfires in the area.

Due to the rapidly changing conditions, we are now reporting the following Post Office is open:

  • Ojai, 93023, 93024.

The following Post Office is open for mail pick-up only (no mail delivery):

Oak View, 93022

It is expected to be a rapidly changing situation as winds are expected to increase. Mailers should monitor http://about.usps.com/news/service-alerts/business-weather-updates.htm for the latest disruption information.

As always, Fairrington will update clients directly impacted by the weather.

 


10 Year Review, PRC Releases Findings

The Postal Regulatory Commission was required to initiate a review of the system for regulating rates and classes for Market Dominant products to determine if the ratemaking system has achieved the objectives of 39 U.S.C. 3622(b), taking into account the factors enumerated in 39 U.S.C. 3622(c). On December 20, 2016, the Commission began its review.

Today, December 1, 2017, Chairman Robert Taub hosted a media conference to discuss the Commission’s findings. The Chairman opened with a recap of the requirement and the process that covered 9 objectives and 14 factors of PAEA.

Chairman Taub stated that “This notice is just that — a proposal. Nothing in this proposal will be final until after public comments are received and considered by the Commission and a final rule is adopted.” There will be a 90 day public comment period.

In the announcement he stated that the system has met some, but not all objectives set for it by statute.

Key areas:

CPI Cap: Commission proposal would maintain a price cap system. Maintain a price cap system. The Commission determined that it is necessary to maintain such a mechanism to create predictability and stability. The Commission seeks to build upon, rather than replace, the CPI price cap by providing discrete amounts of additional rate authority.

  • The PRC is also suggesting 2% rate authority over the cap for 5 years, and another 1% as performance-based rate authority.
  • For products that do not cover costs, underwater, the PRC proposes price increases that are 2% higher than other elements of the class.

Workshare: Per Chairman Taub “The 2006 Law tasked the Commission with ensuring that these discounts do not exceed the cost that the Postal Service avoids as a result of workshare activity, unless certain limited exceptions are met. Objective one of the 2006 Law required that the Postal Service, quote, maximize incentives to reduce costs and increase efficiency, end quote. The ratemaking system achieves pricing efficiency when prices adhere as closely as practicable to what is known as efficient component pricing. To adhere to efficient pricing, workshare discounts should be set equal to the costs avoided by the Postal Service when the mailer performs the workshare activity, thus producing what’s termed pass-trough’s of 100 percent. In our review, the Commission finds that the Postal Service, during the past 10 years, set most discounts substantially above or substantially below 100 percent. This is problematic because such discounts send inefficient price signals to mailers, and therefore reduce productive efficiency in the postal sector.”

  • The Commission proposes pass through bands of 75%-125% for Periodicals
  • 85%-115% for all others with a three-year phase-in to bring all existing discounts into compliance

The PRC statement is available on their site as well as the full order.


PRC 10 Rate Review – Phase I Decision on Friday December 1

The PRC has just released an advisory to the media that they will release the Phase I decision tomorrow.  https://www.prc.gov/sites/default/files/pr/Media%20advisory.pdf at 1:00 eastern.

RM2017-3, the PRC’s Statutory Review of the System for Regulating Rates and Classes for Market Dominant Products. A ruling was expected in early autumn, 2017. The timeline has pushed and is now expected to be late November.

Possible scenarios include:

  1. CPI remains in place
  2. Modified CPI cap with adjustment factor that accounts for unmet liabilities and/or volume loss
  3. Eliminate the CPI cap

Decision Close? Postal Regulatory Commission (PRC) 10 year Rate Review

RM2017-3, the PRC’s Statutory Review of the System for Regulating Rates and Classes for Market Dominant Products is underway. The Commission is deliberating whether the current ratemaking system meets the objectives of the law.

A ruling was expected in early autumn, 2017. The timeline has pushed and is now expected to be late November. Many anticipate that it will be by the end of the week.

Possible scenarios include:

  1. CPI remains in place
  2. Modified CPI cap with adjustment factor that accounts for unmet liabilities and/or volume loss
  3. Eliminate the CPI cap
  4. If the PRC recommends 2 or 3, they will issue a formal rulemaking and will allow two rounds of comments. It’s possible a final decision will not be announced until spring of 2018. Regardless of the decision, legal action is expected by various stakeholders.

USPS Releases FY 2017 Financial Results

The United States Postal Service has released their FY 2017 financial results.

Key Items:

  • Revenue of $69.6 billion for fiscal year 2017 (October 1, 2016 – September 30, 2017), a decrease of $1.8 billion compared to the prior year.
  • Net loss for the year of $2.7 billion, a decrease in net loss of $2.8 billion compared to 2016. $2.4 billion was the result of changes in interest rates, outside of management’s control, that reduced workers’ compensation expense compared to last year.
  • In 2017, mail volumes declined by approximately 5.0 billion pieces, or 3.6 percent
  • Packages grew by 589 million pieces, or 11.4 percent


PRC Approves USPS Price Changes

Postal Regulatory Commission has the Postal Service’s proposed price changes for its market dominant and competitive products. The new prices will go into effect on January 21, 2018.

The market dominant and competitive rulings are available on the PRC’s website.

See our previous post on the filing for rate information.


USPS moves forward with PostalPro

The USPS has announced that as of November 10, 2017 no new content will be posted to RIBBS, though the site will remain active.

Per the Postal Service, “www.postalpro.usps.com will become the primary source for USPS mailing information.”

They did note that there are certain tools which are hosted on the RIBBS website and will be linked from PostalPro; as a result you may still see RIBBS in limited URLs.


Three Postal Governors Nominated by White House

The White House announced this morning nominations for three individuals to be postal governors. They are Calvin Tucker of Pennsylvania, Mike Duncan of Kentucky and David Williams of Illinois.

https://www.whitehouse.gov/the-press-office/2017/10/26/president-donald-j-trump-announces-key-additions-his-administration

  • Calvin R. Tucker of Pennsylvania, for the remainder of a term expiring December 8, 2023.
  • Robert M. Duncan of Kentucky, for the remainder of a seven-year term expiring December 8, 2018, and an additional term expiring December 8, 2025.
  • David Williams of Illinois, for the remainder of a seven-year term expiring December 8, 2019.

The lack of Governors is the stated reason the USPS does not have a 2018 Promotion schedule.

NOTE: Confirmation is still required by the Senate. There is no timeline. Previous administrations have nominated governors, but they were blocked by Senator Sanders. No nomination has been confirmed since 2010. The same roadblock is not anticipated this round, but getting on the schedule for confirmation may be an issue.


USPS Files 2018 Rates – Effective January 21, 2018

The Postal Service has filed Market Dominant and Competitive rates. The rates will become effective January 21, 2018.

Market Dominant Summary

  • First-Class Mail – ~1.9% overall increase
  • USPS Marketing Mail – ~1.9% overall increase
  • Periodicals CPI Percent Change
    • Outside County 1.93%
    • Inside County 1.84%
  • Package Services – ~2.0% overall increase
  • Extra Services – ~2.0% overall increase

The following takes a deeper dive into each class. USPS 2018 Price Change

Competitive Rate Summary

  • The proposed prices raise prices approximately 1.9 percent, and most Shipping Services products will average a 3.9 percent price increase.  Shipping Services prices are adjusted strategically and note limited to CPI.

Upcoming USPS Rate Webinar

The USPS has also announced they will host an overview webinar on October 11. Details below.

2018 Price Change Filing Webinars

Wednesday, October 11, 2017 at 3 p.m. (EDT)

Thursday, October 12, 2017 at 2 p.m. (EDT)

Please join Sharon Owens, VP, Pricing and Costing and Steve Monteith, VP, Marketing on Wednesday, October 11 at 3 p.m. (EDT) or Thursday October 12 at 2 p.m. (EDT) for a high-level overview of the 2018 Price Change filing. Attendees will have an opportunity to submit questions to the panel during this webinar. If you would like to submit your questions before the call, you can submit them to IndustryFeedback@usps.gov.

Attendance is limited, so we ask your cooperation in having multiple attendees log-in from one computer in a conference room, if possible.

Please see instructions to participate below:

Wednesday, October 11 at 3 p.m. (EDT)

Registration required. Click on the attendee direct URL below to complete registration.

ATTENDEE INFORMATION Toll-Free Attendee Dial In: 866-381-9870 Conference ID: 92630156

Attendee Direct URL: https://usps.webex.com/usps/onstage/g.php?MTID=e9e9c5c6885c3addb2408bb637d658614

If you cannot join using the direct link above, please use the alternate logins below:
Alternate URL: https://usps.webex.com
Event Number: 996 144 325

Thursday, October 12 at 2 p.m. (EDT)

Registration required. Click on the attendee direct URL below to complete registration.

ATTENDEE INFORMATION Toll-Free Attendee Dial In: 866-381-9870 Conference ID: 92633015

Attendee Direct URL: https://usps.webex.com/usps/onstage/g.php?MTID=e936a2b8c98a66200ab86c355dd740cb5

If you cannot join using the direct link above, please use the alternate logins below:
Alternate URL: https://usps.webex.com
Event Number: 992 069 818

USPS Event- Current status of the impacts from Hurricanes Harvey, Irma and Maria

The USPS provided an update on the current status of the impacts from Hurricanes Harvey, Irma and Maria. The event was let by Lisa Adams, Manager, Operations Integration & Support at the United States Postal Service.

The USPS did announce they will post the recorded session. Here is a link to our notes and screen shots.

Hurricane 2017_10_04 USPS Update