Quick Notes on the

USPS 2007 Rate Case

Reviewing the preliminary rate case submitted by the USPS, we find that changes, which are expected to go into effect this year, include:

·         Better discounts for one oz First Class letters & some First Class flats.

·         Smaller discounts for 2, 3 and 4 ounce First Class letters.

·          New rates promote flats vs parcels and letters vs flats

·          Discount levels within classes revised. Some expanded, some eliminated.  

First Class

·          Single-piece letter rates for 2, 3 and 4 ounce items will decrease.

·          All discounted rates (presort and automation) will decrease for 2-4 oz items.

·          Discounts for all automated First Class letters will increase.

·          Automation Carrier Route discounts will be eliminated

·          Significant increases in discounts for flats.

Standard Class

·          Standard Class rates will go up for both letters and flats, but high discounts should offset some of the increase,

·          Significantly larger discounts for piece rate flats.

·          Discounts for piece rate automation letters will increase by nearly 6%

·          Discounts for piece/pound items will increase between 5% and 12%

Basic and 3/5 Standard Class rates for flats will be split into Mixed ADC, ADC, 3 digit and 5 digit