The U.S. Postal Service has proposed new 2012 shipping rates that are expected to start on January 22, 2012.   The average increase for all shipping classes is 4.6%.  Private carriers such as UPS and FedEx have already announced price increases for 2012.  UPS announced last week they are increasing prices on ground and air shipments by an average of 4.9%.  In September, FedEx announced it would increase rates by an average of 5.9%. 

The Postal Regulatory Commission (PRC) must review and approve the new rates before they become effective January 22, 2012.  This is the same day the new USPS mailing service prices will take effect. 

New USPS Shipping Products for 2012

• A new, larger Priority Mail Regional Rate Box C will be introduced that will hold up to 25 pounds.  Box size is expected to be 12” x 12” x 15”.
• A new Express Mail Flat Rate Box will be introduced that holds up to 70 pounds.  Cost will be  $39.95 for domestic mailings.
• Package Intercept will be introduced for commercial mailers.  Customers can request mail be intercepted before final delivery is attempted to the initial delivery address. The shipment can be returned to sender, held for pick up at a Post Office, or redirected to an alternate address.
• First Class Package Service (aka First Class Parcels) will now include the Intelligent Mail package barcode and will provide free visibility to these parcels.

Priority Mail
Priority Mail retail (Post Office) prices will increase an average of 3.1% in 2012. 

Express Mail
USPS retail rates for Express Mail will increase an average of 3.3% in 2012. 

Parcel Select
Prices for Parcel Select, the U.S. Postal Service’s bulk ground shipping product, will increase an average of 8.5%.

First Class Package Service (formerly known as First Class Parcels)
First Class Parcels were recently transferred to the “competitive product list” which allows the mail class to be eligible for Commercial Base pricing. The mail class was renamed First Class Package Service and will see an average increase of 3.7% in 2012.

International Mail
The overall increase for Priority Mail International will be 8.7%. 

Express Mail International will increase by 11.6% and will introduce a two new Express Mail International Flat Rate Boxes with a maximum weight of 20 pounds.  Customers will pay a flat rate of $59.95 to Canada and $74.95 for all other countries. 

Global Express Guaranteed prices will rise by 6.0%.

Stamps.com Will Automatically Include New Rates on January 22, 2012
Stamps.com makes it easy to prepare for the postal rate change by automatically applying these new prices starting on January 22, 2012.  Additionally, Stamps.com customers will continue to receive Commercial Base pricing discounts to help lower your shipping costs in 2012.

Starting on January 18, 2010, it’s going to cost more to send packages through FedEx. The international shipper is hiking prices to “enable FedEx to make key investments,” said company spokesman T. Michael Glenn in a news release.

On average, it will cost individuals and businesses 5.9% more to send a parcel anywhere through this service.  The company is expected to announce rate increases in the coming months for its ground service.

FedEx Express Tubes Will Have
6-Pound Minimum Billable Weight in 2010
Along with increasing their base shipping rates, FedEx is increasing surcharges as well.  If your destination address is incorrect, it now will cost you $11, an increase of 10 percent from 2009. “Remote” zip codes, as decided by FedEx, will require an additional delivery surcharge. And if you send FedEx Express Tubes, you’ll have to pay for at least 6 pounds inside the U.S., even if you’re contents in the tube are lighter. That can add up – if you ship a 3-pound Express Tube from Los Angeles to Miami, it will cost you $29.38* under the current 3-pound rate.  At the new minimum 6-pound rate for 2010, that same package will cost you $38.75 – at 32% increase.

USPS Does Not Add Miscellaneous Fees
Thankfully, the USPS is a great economical option to ship your parcels to their destinations.  USPS doesn’t have “miscellaneous fees” for sending packages to rural areas or for using a special printed return label like UPS and FedEx do. In fact, USPS offers many of these services for free:

• No Fuel Surcharges with USPS:
  FedEx currently charges 5.50% extra on your package cost for fuel surcharges.  The USPS doesn’t add any form of fuel surcharge.
• No Residential Delivery Charges with the USPS:
  FedEx will charge $2.50 for residential delivery in 2010.  The USPS delivers to all residences in the U.S. for no added cost.
• No Saturday Delivery Charges with the USPS
  FedEx Saturday delivery charges can be as high as an additional 54% of a standard 2 Day Express change**.  The USPS does not charge to deliver on Saturday.
• No Rural Delivery Area Charges with the USPS
  FedEx delivery charges to select rural area could cost as high $2.75 per package in 2010.  The USPS has been delivering to rural areas for free since 1896.
• No Address Correction Charges with the USPS
  FedEx will charge $11.00 to correct an invalid address.   The USPS does not charge anything to correct the delivery address.

The USPS offers Priority Mail which is one of the cheapest methods to ship your packages.   Shipping a 3-pound 38” x 6” triangular tube from Los Angeles to Miami would cost $15.88 using the Stamps.com discounted USPS Priority Mail rates – a 59% lower cost than FedEx’s new 2010 charge of $38.75 to be delivered.   Priority Mail packages will arrive at your destination in just two to three days.