Biggest US postal rate hike in decades takes effect in January 2019

Washington, DC – Stamps are set to increase beginning January 27. This is the biggest price hike for postage since 1991.

In October, the U.S. Postal Service board of governors requested a 5 cent increase to the forever stamp, upping the price to 55 cents. The USPC said the change would also reduce the additional ounce price of letters.

The Postal Regulatory Commission approved the price changes last month.

The new prices, approved by the Governors of the Postal Service, would raise Mailing Services product prices approximately 2.5 percent. Shipping Services price increases vary by product. For example, Priority Mail Express will increase 3.9 percent and Priority Mail will increase 5.9 percent. Although Mailing Services price increases are based on the Consumer Price Index (CPI), Shipping Services prices are primarily adjusted according to market conditions. The Governors believe these new rates will keep the Postal Service competitive while providing the agency with needed revenue.

The new prices will include a 5-cent increase in the price of a First-Class Mail Forever stamp, from 50 cents to 55 cents. The single-piece additional ounce price will be reduced to 15 cents, so a 2-ounce stamped letter, such as a typical wedding invitation, will cost less to mail, decreasing from 71 cents to 70 cents.

The U.S. Postal Service claims to have some of the lowest letter mail postage rates in the industrialized world and also continues to offer a great value in shipping. Unlike some other shippers, the Postal Service does not add surcharges for fuel, residential delivery, or regular Saturday or holiday season delivery.

The complete Postal Service price filings with the new prices for all products can be found on the PRC site under the Daily Listings section at https://www.prc.gov/dockets/daily (see listing for Oct. 10). For the Mailing Services filing see Docket No. R2019-1. For the Shipping Services filing see Docket No. CP2019-3. The price change tables are also available on the Postal Service website at https://pe.usps.com/PriceChange/Index.

The Postal Service receives no tax dollars for operating expenses and relies on the sale of postage, products, and services to fund its operations.

Below are some of the highlights of the 2019 USPS rate increase for customers buying postage online:

First Class Mail Letters

• The First Class Mail letter (1 oz.) rate for postage purchased at the Post Office is increasing by five cents to $0.55 from $0.50.
• Each additional ounce for a First Class Mail letter will cost an extra $0.15 (a decrease from $0.21 in 2018).
• First Class Mail Flats/Large Envelope rates are not increasing in 2019, remaining at $1.00 (1 oz.), with additional ounces costing $0.15.
• Postcard rates are also not increasing in 2019, remaining at $0.35.
• Customers who print postage online (via Stamps.com), the Metered Mail rate will now be a 5 cent discount compared to the Post Office price with rates increasing to $0.50 in 2019 from $0.47 currently.
• Each additional ounce will cost an extra $0.15 in 2019, a decrease from $0.21 currently.
• The five cent discount for online postage on a one-ounce First Class Mail letter represents a savings of 9% for consumers and small business owners.

Priority Mail Express (Commercial Base Pricing)

• Priority Mail Express will see an average increase of 3.9%.
• A 1 lb. package going to Zone 8 using Priority Mail Express will cost $36.52 in 2019 compared to $35.04 currently.
• The USPS is adjusting the DIM Divisor for Priority Mail Express packages over 1 cubic foot (1728 cubic inches) from 194 to 166.
• Commercial Plus Pricing has been eliminated.

Priority Mail Express Flat Rate (Commercial Base Pricing)

• Priority Mail Express Flat Rate Envelopes will also see a rate increase ranging from $0.70 to $0.72 depending on the envelope used.

Priority Mail (Commercial Base Pricing)

• Priority Mail will see an average increase of 5.9%.
• A 1 lb. package going to Zone 8 using Priority Mail will cost $8.25 in 2019 compared to $7.76 currently.
• Heavier weights for Priority Mail are seeing a rate decrease.  For packages weighing between 11 lbs. and 70 lbs., all shipping zones are seeing lower rates compared to 2018.  Cost savings range from $0.11 (11 lbs. Zone 1/2 = $10.67) to $1.37 savings (70 lbs. Zone 8 = $184.51) compared to 2018.
• Medium weight packages (4 lbs. to 10 lbs.), traveling to Zone 5 and higher are seeing a decrease in rates compared to 2018, with costs being reduced by $0.17 (7 lbs. Zone 5 = $15.43) to $0.63 (5 lbs. Zone 8 = $20.40)
• The Dimensional Weight (DIM) divisor for Priority Mail packages over 1 cubic foot (1728 cubic inches) is being adjusted from 194 to 166. UPDATE: The USPS has postponed the DIM divisor change until June 23, 2019.
• Priority Mail parcels in all shipping zones will now receive DIM pricing for packages over 1 cubic foot.  Previously, only Priority Mail parcels being delivered to Zones 5-9 received DIM pricing. UPDATE: The USPS has postponed the DIM zone changes until June 23, 2019.
• Commercial Plus Pricing has been eliminated.

Priority Mail Flat Rate Boxes & Envelopes (Commercial Base Pricing)

• Priority Mail Medium Flat Rate Box is decreasing by five cents to $12.80 in 2019 from $12.85 currently.
• Priority Mail Priority Mail Large Flat Rate Box is decreasing by five cents to $17.60 in 2019 from $17.65 currently.
• Priority Mail Padded Flat Rate Envelope, a popular option for e-commerce sellers, is increasing by $0.45 to $7.55 in 2019 from $7.10 currently.

Priority Mail Regional Rate (Commercial Base Pricing)

Regional Rate Box A

• Closer shipping zones (Zones 1/2 through Zone 5) are seeing bigger rate increases from $0.55 (Zone 1/2 = $7.65) to $0.61 (Zone 5 = $8.76).
• Packages traveling to farther shipping zones are seeing a smaller rate increase – going up by $0.26 (Zone 7 = $10.55) and to $0.40 (Zone 8 = $11.20)

Regional Rate Box B

• Other than Zone 1/2 where the rate increase is $0.64, the increase is relatively small at $0.08 (Zone 3 = $8.50), $0.03 (Zone 4 = $9.40) and no rate increase for farther Zones 5-8.

First Class Package Service (Commercial Base Pricing)

• Overall rates for First Class Package Service will increase by 11.9%.
• Zone-based pricing is being added to First Class Package Service in 2019.
• Any package going across the country (Zone 8) is seeing a significant rate increase going up from $0.43 (Zone 8 – 1 ounce = $3.09) to $1.43 (Zone 8 – 13 ounces = $5.53)
• 13 ounce packages in particular are rising across all zones, increasing $0.84 (Zone 1/2 = $4.94) to $1.43 (Zone 8 = $5.53)
• Heavier items weighing 15 ounces to 15.999 ounces are seeing a smaller increase, going from no increase at all (Zone 1/2 = $4.94) to $0.59 (Zone 8 = $5.53)

Parcel Select Ground (Commercial Base Pricing)

• Shipping rates for Parcel Select Ground will decrease by an average of 1.3% in 2019.
• For parcels weighing between 3 lbs. and 18 lbs. and traveling to farther zones (Zone 5-9), every cell is seeing a rate decrease in 2019.
• Parcel Select Group is also seeing a rate decrease for all zones for parcels weighing between 21 to 70 pounds
• The Dimensional Weight (DIM) divisor for Parcel Select Ground packages over 1 cubic foot (1728 cubic inches) is being adjusted from 193 to 166.

Media Mail

• Media Mail rates will increase by 2.95% in 2019.
• A 1 lb. package traveling to Zone 8 will cost $2.75 in 2019 compared to $2.66 currently.