Update on new shipping and mailing rates
Recent increases by FedEx and UPS and the pending Jan. 27 rate increase for the U.S. Postal Service will bring challenges and opportunities for business in 2019.
That’s according to a report by Pitney Bowes, which detailed the rise in package shipping rates for all three major U.S. carriers. However, in addition to the increases, the changes include the largest discount ever for metered mail, giving businesses greater incentive to leverage automation technology, noted Pitney Bowes.
Here are some of the key rate changes that could have significant impact on most businesses according to Pitney Bowes:
• FedEx raised its FedEx Express package and freight standard list rates by an average of 4.9% for U.S., U.S. export and U.S. import services. It also raised its FedEx Ground and FedEx Home Delivery standard list rates by an average of 4.9% as well.
• UPS increased its U.S. Ground, Air and Freight rates by an average of 4.9%.
• USPS will institute an average rate increase of 5.9% for Priority Mail. Overall rates for First Class Package Service will go up 11.9% and any package going across the country will see a significant increase, anywhere from $0.43-$1.43.
• The price of a first-class stamp will increase from $.50 to $.55. However, businesses that apply postage using a postage meter instead of stamps, will now save $.05 on every First-Class Mail letter they send.
In announcing the increase in the discount from $.03 to $.05 per piece, the USPS noted that, “meter-based payment is more efficient than stamp-based payment – it eliminates the need for stamp production, distribution, and cancellation – and fosters more consistent use of the postal system, slowing the migration of mail volume to electronic channels. Small business volume in particular should be protected by this decision.”
• Using a postage meter will save $.05 per piece, meaning instead of $.55 per piece, the cost is $.50. A small business that sends 1000 pieces of mail per month can easily save $600 in postage annually simply by using a meter. This metered mail savings also applies to PC Postage, Permit Imprints and Pre-Cancelled stamps and is on top of the many other benefits of metered mail, including convenience, accuracy, cost accounting, security, and payment options.
Here are three recommendations from Pitney Bowes for businesses to optimize their sending operations in 2019:
1. Compare Rates. New cloud-based solutions can help you deploy a consistent, unified and scalable approach to sending packages and mail to gain greater control and visibility into the true cost of shipping and mailing within your organization. New technology can enable organizations to:
• Facilitate multi-carrier management, enables selection of the best carrier for each package based on a simple view of service level, cost and value;
• Access USPS commercial-based savings that aren’t available at the post office; saving up to 40% on things like Priority Mail;
• Initiate carrier pickup in real-time from the desktop, tablet or mobile device;
• Automatically reconcile all charges to one account; and
• Improve the package receipt process, so inbound tracking capability becomes as convenient as outbound shipping.
2. Meter your Mail. Using a postage meter saves 5 cents per piece for envelopes – up to 3.5 ounces. This metered mail savings also applies to PC Postage, Permit Imprints and Pre-Cancelled stamps and is on top of the many other benefits of metered mail, including convenience, accuracy, cost accounting, security, and payment options.
3. Use Presort Services. Presorting helps maximize postal discounts and allows the mail to be introduced into the postal system closer to its final destination, generating deeper postal discounts and streamlining mailing operations. Commingling your mail with mail from other businesses will enable you to gain greater postage discounts while ensuring your mail arrives on-time, at the right place.
For more details on the rate changes, visit Pitney Bowes Rate Change Central.
That’s according to a report by Pitney Bowes, which detailed the rise in package shipping rates for all three major U.S. carriers. However, in addition to the increases, the changes include the largest discount ever for metered mail, giving businesses greater incentive to leverage automation technology, noted Pitney Bowes.
Here are some of the key rate changes that could have significant impact on most businesses according to Pitney Bowes:
• FedEx raised its FedEx Express package and freight standard list rates by an average of 4.9% for U.S., U.S. export and U.S. import services. It also raised its FedEx Ground and FedEx Home Delivery standard list rates by an average of 4.9% as well.
• UPS increased its U.S. Ground, Air and Freight rates by an average of 4.9%.
• USPS will institute an average rate increase of 5.9% for Priority Mail. Overall rates for First Class Package Service will go up 11.9% and any package going across the country will see a significant increase, anywhere from $0.43-$1.43.
• The price of a first-class stamp will increase from $.50 to $.55. However, businesses that apply postage using a postage meter instead of stamps, will now save $.05 on every First-Class Mail letter they send.
In announcing the increase in the discount from $.03 to $.05 per piece, the USPS noted that, “meter-based payment is more efficient than stamp-based payment – it eliminates the need for stamp production, distribution, and cancellation – and fosters more consistent use of the postal system, slowing the migration of mail volume to electronic channels. Small business volume in particular should be protected by this decision.”
• Using a postage meter will save $.05 per piece, meaning instead of $.55 per piece, the cost is $.50. A small business that sends 1000 pieces of mail per month can easily save $600 in postage annually simply by using a meter. This metered mail savings also applies to PC Postage, Permit Imprints and Pre-Cancelled stamps and is on top of the many other benefits of metered mail, including convenience, accuracy, cost accounting, security, and payment options.
Here are three recommendations from Pitney Bowes for businesses to optimize their sending operations in 2019:
1. Compare Rates. New cloud-based solutions can help you deploy a consistent, unified and scalable approach to sending packages and mail to gain greater control and visibility into the true cost of shipping and mailing within your organization. New technology can enable organizations to:
• Facilitate multi-carrier management, enables selection of the best carrier for each package based on a simple view of service level, cost and value;
• Access USPS commercial-based savings that aren’t available at the post office; saving up to 40% on things like Priority Mail;
• Initiate carrier pickup in real-time from the desktop, tablet or mobile device;
• Automatically reconcile all charges to one account; and
• Improve the package receipt process, so inbound tracking capability becomes as convenient as outbound shipping.
2. Meter your Mail. Using a postage meter saves 5 cents per piece for envelopes – up to 3.5 ounces. This metered mail savings also applies to PC Postage, Permit Imprints and Pre-Cancelled stamps and is on top of the many other benefits of metered mail, including convenience, accuracy, cost accounting, security, and payment options.
3. Use Presort Services. Presorting helps maximize postal discounts and allows the mail to be introduced into the postal system closer to its final destination, generating deeper postal discounts and streamlining mailing operations. Commingling your mail with mail from other businesses will enable you to gain greater postage discounts while ensuring your mail arrives on-time, at the right place.
For more details on the rate changes, visit Pitney Bowes Rate Change Central.