Got Mail? USPS Updates and Changes

Happy 50th birthday, USPS.?

(Surprised? On July 1, 1971, the Post Office Department — until that date a Cabinet-level department — became the USPS, organized as a separate entity under the executive branch and governed by the Postal Regulatory Commission (PRC). Check out more fun facts about the history of mail in this country.)

So, how’s it going at the USPS these days? There’s a lot of news coming from the organization that plays such a huge role in our lives and our businesses; let’s break it down.

Are You Being Served?

We’ll start with the big issue on the minds of our business mailers … the planned service slowdowns announced this spring by Postmaster General Louis DeJoy. The plan impacts First Class mail (which moves from a one-to-three day delivery window to a one-to-five day); First Class packages; and Flats processing times. It’s hard to know how big a role the pandemic played in all of this, but this we do know: The mail isn’t getting through as quickly as it used to.

For marketing mail processing as Flats, the USPS is reporting 94.55% on-time delivery (based on the new standards) from SCFs (Sectional Center Facilities), and a 92.68% on-time rate for mail going through NDCs (Network Distribution Centers). Most of the marketing mail is reported as being delivered by day 8 of the service window.?

Periodicals are a bit slower, with 89%.32 percent on-time via SCFs. Both flats and periodicals are trending up in terms of meeting service delivery requirements.?

Service … at a Glance

To help visualize how the USPS is doing with meeting its new delivery standards, the USPS Office of Inspector General launched its service performance dashboard. You’ll find national on-time percentages and can drill down easily to state or regional levels and service classes. The image below shows data for our Northern Ohio region, as of July 1, for delivery of Marketing Mail specifically. As you can see, 46% of that mail is being delivered above target times, while?21% is lagging behind.

Image source: www.uspsoig.gov

The site also has a ton of data and reports on service performance and updates, and a list of known trouble spots in their Open Service Performance Projects list. This dashboard goes a long way to giving us all some much-needed transparency into what’s happening out there.

The How Much Mail, Anyway?

Compared to this week last year, total mail volume is up by 21%, while package volume is down by 19%. A few key stats:

• Marketing mail is up by 27% over this week last year
• Periodicals are up almost 30%
• First-Class letters are down 4%, with First Class Presort up by 7.8%.

Postcards are Going Supersize

By the end of August this year, postcards could be looking a lot bigger, up from the current maximum size for presort FC cards of 6” x 4 1/2”. Per a recent filing with the PRC, that will soon bump up to 9” x 6”. This could be a welcome change for marketers; we expect to see some creative solutions to fill all that new space.?

A Deep Dive into the 2021 Price Change Filings

Finally, we get to the price hikes, likely to go into place on August 29 (providing the PRC completes their review in July with no push-back).?

Per the USPS website: “The proposed price changes would raise overall Market Dominant product and service prices by approximately 6.9 percent. First-Class Mail prices would increase by 6.8 percent to offset declining revenue due to First-Class Mail volume declines. In the past 10 years, mail volume has declined by 46 billion pieces, or 28 percent, and is continuing to decline. Over the same period, First-Class Mail volume has dropped 32 percent, and single-piece First-Class Mail volume — including letters bearing postage stamps — has declined 47 percent.”

Here’s the breakout, also from the USPS site:

If you’re interested in taking a deep dive into the coming hikes and what it could mean for your business, view the webinar from USPS VP, Pricing and Costing, Sharon Owens. At one hour and 20 minutes, it’s packed with a lot of info. Fast forward to 14:14 for Owens’ discussion on First Class mail rates and the proposed changes.

The USPS has certainly seen its share of challenges … as have all the businesses that rely on it for cost-effective delivery of this precious American resource we know as “the mail.” We’ll continue to monitor the changes that have an impact on your business mail and together work with you to maximize the effectiveness of every dollar you spend with the USPS.?