The cost of shipping is a bit staggering. but when you consider a letter mailed Tuesday will get to its destination in two or three days and that the US Postal Service has some of the lowest letter mail postage rates in the industrialized world, that is still an incredible value in shipping.
Also, unlike other private sector shippers, the USPS doesn’t surcharge for fuel use, residential delivery, or delivery of packages over the weekend or during a busy holiday season. To make things more complicated for the USPS, they do not receive any tax dollars to cover operating expenses which means they need to rely completely on revenue from the sale of postage, shipping products, and mailing services in order to pay for their operations.
This is why the Postal Service has raised the prices of postage and parcel delivery services effective January 27, 2019. Here are the proposed changes:
Letter postage (1 oz.) $.50 to $.55
Letter additional ounces $.21 to $.15
Letters (metered 1 oz.) $.47 to $.50
Priority Mail Retail Flat Rates
Small Flat Rate Box $7.20 to $7.90
Medium Flat Rate Box $13.65 to $14.35
Large Flat Rate Box $18.90 to $19.95
APO/FPO Large Flat Rate Box $17.40 to $18.45
Regular Flat Rate Envelope $6.70 to $7.35
Legal Flat Rate Envelope $7.00 to $7.65
Padded Flat Rate Envelope $7.25 to $8.00
The postal service determines prices for mailing services on the Consumer Price Index wile shipping rates are primarily based on market conditions. These price increases are intended to provide the USPS with needed revenue but more importantly it keeps the Postal Service competitive with other parcel shipping services. Raising prices for postage is nothing new for the USPS. In fact they have gone from raising postage rates every three to five years to raising them every year.
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