USPS Increases Postal Rates Effective July 9th by 5.4%
The United States Postal Service has announced an increase in postal rates that will take effect on July 9th, 2023. The new rates include a 5.4% overall increase, with a three-cent boost in the price of a first-class mail forever stamp from 63 cents to 66 cents. The increase is based on three components allowed by PRC, with the CPI accounting for 3.4%, density rate authority at 0.9% and retirement rate authority is 1.0%. Additionally, Congress passed a regulation in 2021 that allows USPS to increase postal rates by two additional authorities besides CPI,
1.) Density to offset mail volume declines
2.) Retirement to fund USPS employee retirement – which ends after July 2026.
However, there are two pieces of good news in the midst of this change.
Firstly, the USPS has proposed to renew discount promotions in 2024, although this proposal is still subject to approval by the Postal Regulatory Committee (PRC). These discounts can be a significant help to businesses trying to reduce costs, and we hope they will be approved soon.
Secondly, despite the increase in rates, the USPS's on-time performance scores are consistently impressive. This is a major positive factor for businesses that rely on timely postal deliveries. According to the USPS, the on-time performance for first-class mail is 92.3%, marking a 1.3% increase over the last quarter. Marketing mail on-time performance increased by 1.4% to 95.9%, while periodicals saw a 2.4% increase to 88.9%.
USPS has modernized servicing systems and implemented new technologies. Enhanced scanning technology has enabled continued chain-of-custody tracking and assurance for all mail, driving efficiencies and consistency. Additionally, the Postmaster General, Louis DeJoy, has stated that the USPS will continue to invest in upgrading technology and equipment to improve efficiency and increase speed and accuracy of deliveries.
In conclusion, #usps has announced a significant increase in postal rates starting from July 9th, 2023, but there are reasons to believe that businesses that rely on postal deliveries will still get quality services. While the proposed discounts, if approved, would be of great help to businesses, USPS's on-time deliveries remain strong, and the agency is continuously modernizing their servicing systems and investing in new technologies to enhance efficiencies. We hope that these measures will continue to make USPS an indispensable partner for businesses, even in the face of rising postal rates.
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