Home   
 
 

In sworn testimony before The Postal Rate Commission in R-2001-1 the U.S.P.S. provided data that established the true cost of handling a sack of mail. This costing data lead to discussions of how to migrate mail from the inefficient sack container to the more efficient pallet, without altering the present regulations. Periodical mailers were the main focus of these discussions because of the number of short run, low volume titles and because there were already palletization incentives in place in the current rate structure ($.016 per piece for destination entry pallets). After several meetings the U.S.P.S. came up with an additional, experimental "niche" classification rate exclusively for co-palletization. This rate ($.007 per piece for ADC pallets and $.01 per piece for SCF pallets) was accepted by industry and trade organizations, without contention, and became available on a two-year trial basis in April 2004.

With the approval of this new piece discount, Fairrington began the process of discovery involving several engineering firms. The challenge was to create an automated process that would, after capital and labor expense, provide a financial return to the publisher incenting participation. It worked. Since the inception of co-palletization in April 2005, Fairrington has eliminated 3.2 million mail sacks. In addition to periodical mailers, discussions have begun with the Postal Service to include Standard A flats.

 



Copyright 2006 Fairrington. All Rights Reserved