The heavily loss-making US Postal Service has unveiled price increases for its shipping servicesfor 2012 to boost revenues and has also hired expert financial advisers to help it restructure its
business model.Prices for shipping services, which compete with UPS, FedEx and other parcel and expresscarriers, will go up by 4.6 per cent as an overall average from January 22, 2012. Express Mail willbe 3.3 per cent more expensive and Priority Mail prices will rise 3.1 per cent.
At the same time, USPS will introduce its new Express Mail Flat Rate Box offering overnightnationwide delivery of goods up to 70lbs for a flat price of $39.95.
“The introduction of the Express Mail Flat Rate Box leverages the success of our PriorityMail Flat Rate advertising campaign and further positions the Postal Service as the best value inthe shipping business,” said Paul Vogel, president and chief marketing/sales officer. The new boxwill be available for customers who need overnight service for items larger than what can be placedin an Express Mail Flat Rate Envelope, which will be priced at $18.95.
The First-Class Package Service (formerly known as First-Class Mail commercial parcels andnow a Shipping Services product) will see an overall price increase of 3.7 per cent. TheIntelligent Mail package barcode will provide free visibility to these parcels. Other Express Mailchanges include lower retail prices for half- and one-pound packages and commercial packages tolocal and close-in areas. Prices will also be adjusted for other Shipping Services products andservices, including Parcel Select, Parcel Return Service, International Mail, Premium ForwardingService and Post Office Box Service.
Also new for 2012 is Package Intercept for commercial mailers, available through a customerinterface on Business Customer Gateway. For $10.95 plus Priority Mail postage, customers canrequest mail be intercepted before final delivery is attempted to the initial delivery address. Theshipment can be returned to sender, held for pick up at a Post Office, or redirected to analternate address. Intercepted packages are shipped using Priority Mail.
The Postal Regulatory Commission (PRC) will review the prices before they become effective onJanuary 22, the same day Postal Service Mailing Services prices take effect, USPS said.
Separately, the US Postal Service announced that it has hired Evercore Partners to review andadvise on the ongoing restructuring of its business model. The advisers have assisted other large,complex organizations experiencing financial challenges, including General Motors and othertransportation companies. “Evercore Partners is a leading publicly-traded independent investmentbanking advisory firm that is recognised as an industry leader in advising clients on financialrestructurings and other strategic transactions,” USPS stated.
The move comes after the largest US postal union, the APWU, last month hired Lazard andformer US government adviser Ron Bloom to develop proposals to restructure the Postal Service.
