USPS Proposal Would Let It Increase Rates for Parcel Post
By Ina Steiner
EcommerceBytes.com
May 09, 2012
On April 26, 2012, the Postal Service filed a notice with the Postal Regulatory Commission requesting that Parcel Post service be moved from the market dominant list to the competitive product list, which would give it more flexibility in raising rates. The Postal Service estimates that only 15 percent of Parcel Post's volume is attributable to small businesses.
There are two different processes by which the USPS can raise rates - one for market dominant services, such as First Class mail, and another for competitive services, such as Priority Mail and Express Mail. The USPS is restricted from increasing prices for market dominant services above the Consumer Price Index, according to the Postal Law of 2006.
The USPS said Parcel Post is an economical ground package delivery service for less-than-urgent and oversize packages that competes with comparable products offered by competitors, and asserts that Parcel Post fulfills all criteria for competitive products under postal regulation 39 U.S.C. 3642.
The USPS said it recognizes that a price increase would be necessary "to ensure that Parcel Post covers its attributable costs and prohibits market dominant products from subsidizing competitive products."
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Seems now that people are using Parcel Post more and more with all these price increases they now want their "piece of the pie" on Parcel Post, too.....aaaaaaaack!! Just MHO