What was the USPS rate change for January 26, 2022?
Beginning on January 26, 2022, the USPS had increased the handling fee for all international First-Class Mail International (FCM-I) rates between the U.S. and all other countries. The new rate, known as the “universal service fee,” went into effect at a rate of $2.15 (USD) per ounce. This new fee is applied to all international parcels weighing up to (but not exceeding) 20 pounds.
Additionally, it applied to all Priority Mail International (P-M-I) shipments, regardless of distance or weight. To give customers advance notice of this change, the USPS sent out a series of reminder notices in mid-December, informing customers that new rates will go into effect on January 26, 2022.
What was the effect of the changes made to the USPS shipping rates in 2020?
Usps is dedicated to providing excellent customer service and reliable services at the best possible price for its customers. The shipping rate changes issued by the FMC may have caused some level of inconvenience for many shippers who rely on their services to move their packages efficiently. There were, however, steps that the company took to mitigate these effects as much as possible before they went into effect in 2022
Which set of customers got affected by the changes?
It included a new surcharge for international customers sending prescription drugs from the U.S. via Priority Mail International (P-M-I). The second rate change had been effective on January 26, 2022, too, and it involves a decline in shipping rates for Small Flat Rate Boxes under 100 pounds. In addition, there will be a 16-cent decline in shipping rates for Global Express Guaranteed (GXG) service and Priority Mail International (P-M-I) packages coming from Canada as of January 26, 2022.
Why the USPS decided to increase shipping rates on January 26, 2022?
In addition to the new fee for international shipping rates, the USPS announced a 6-cent increase in rates for domestic rates as of January 26, 2022. The USPS said that they are increasing rates to offset a significant increase in wages and benefits expenses. The USPS said that they were also struggling with declining revenue as a result of the growing use of online bill payments. In an attempt to combat this growing trend, the USPS had partnered with various online bill payment services to enable customers to automatically update their account information to enable faster online bill payment. Which, of course, was a good addition to the business, seeing that payment systems had been changing in recent times. These changes had changed the way other companies did business and USPS deemed it fit to join the train.
USPS Rate Decrease for Small Flat Rate Boxes under 100 pounds
Beginning January 26, 2022, the USPS reduced the price of all flat rate boxes under 100 pounds. The new price became $12.85 (USD), a 17-cent decrease from the initial rate of $13.15. This new price is applied to all flat rate boxes with a weight under 100 pounds. It did not apply to boxes that came from other countries, nor to boxes that weighed more than 100 pounds.
U.S. Shipping Rates for Other Countries
The USPS also announced a new surcharge for international customers sending via Priority Mail International (P-M-I) from the U.S. The new fee had been $17.10 (USD) for up to 30 pounds. The 30-pound weight limit did not apply to prescription drugs. For all other international shipping methods, the new price had been $47.70 (USD). The old price of $47.35 was no longer accepted.
Shipping Rates had Stayed Constant Until January 26, 2024
The USPS had said that it will not increase shipping rates until January 26, 2024. After that date, the USPS will continue with the rate decreases that started in 2015 and 2022. The USPS will also continue with the rate increases that started in 2006 when rates were increased by 10 cents to offset the cost of the 2006 federal law authorizing same-day and next-day delivery.
Conclusion
Overall, the USPS rate changes for January 26, 2022, did have a relatively small impact on most businesses. The only rate change businesses were told to be concerned about had been the increase in shipping rates for international customers. It’s important to keep in mind that the new shipping prices did not apply to Priority Mail or Express Mail shipments. All in all, these new rates might have caused a stir initially, but everything is under control at the moment.
