Latest News and Highlights
USPS NOTICE OF PRC FILING - 2017 PROMOTIONS AND FCM PARCELS. USPS: The Postal Service filed a request with the Postal Regulatory Commission to establish the 2017 Promotional Program in addition to adjusting certain prices in the First-Class Mail Parcels product. The proposed price adjustment does not constitute the Postal Service’s annual, general Market-Dominant price adjustment, which is typically filed in the fall of the year.
If approved by the Commission, the revised First-Class Mail Parcels prices will take effect on Aug. 28, 2016. The first of the 2017 promotions will begin Jan. 1, 2017.
2017 Promotional Program. The promotions are designed to encourage all marketers, printers, and mailers to utilize new technology and tools that leverage and increase the value of a physical mailpiece. The proposed 2017 promotional offerings are:
First-Class Mail Parcels and Inbound International First-Class Mail Letter Post. This filing will correct the price imbalance between First-Class Package Service and First-Class Mail parcels by slightly increasing prices for all pieces that weigh up to three-ounces to $2.62. Prices for Inbound International First-Class Mail Letter Post (Inbound Letter Post) are set by the Universal Postal Union (UPU) and are implemented every January, and went into effect Jan. 2016.
USPS REPORTS FY16 SECOND QUARTER RESULTS: USPS: The U.S. Postal Service reported operating revenue of $17.7 billion for the second quarter of fiscal year 2016 (January 1, 2016 - March 31, 2016), an increase of $788 million or 4.7 percent over the same period last year. The increase was primarily due to an 11.4 percent increase in Shipping and Package volume and pricing strategies.
“While we have been successful in achieving controllable income during the quarter, we are still reporting net losses and contending with long-term financial challenges,” said Postmaster General and Chief Executive Officer Megan J. Brennan. “We continue to focus on improving operating efficiencies, speeding the pace of innovation, and increasing revenues for the Postal Service.”
Controllable income for the quarter was $576 million compared to $313 million for the same period last year. Calculation of controllable income takes into account the impact of operational expenses including compensation, benefits and work hours; but does not reflect factors such as the legally-mandated expense to prefund retiree health benefits (see Non-GAAP Financial Measures table on following page for full description).
MAILER SCORECARD AVAILABLE FOR REVIEW: INDUSTRY ALERT: The USPS has completed its testing of the Mailer Scorecard for Full-Service with Mailers Technical Advisory Committee members (Task Team 23.) We now encourage all mailers to begin reviewing the Full-Service Mail Quality Metrics which can be found within the Electronic Tab of the Mailer Scorecard beginning with the current month of May. USPS Analysts will be available to provide guidance and answer your questions about the Mailer Scorecard during Open Line calls beginning May 11, 2016. Dial in information is located below. We encourage you to attend these calls. If you notice any irregularities or have any questions with the Mailer Scorecard report these issues through the hotline calls, PostalOne! Helpdesk at 800-522-9085 or via email at firstname.lastname@example.org . Please include the phrase “Mailer Scorecard” in the subject line of the email. The announced July date to begin assessments of Full-Service is being postponed to allow the industry additional time to access, utilize and test the Full-Service Mail Quality Metrics within the Mailer Scorecard.
Below is the dial in information for the Mailer Open Line calls: Monday/Wednesday/Friday Starting May 11, 2016 (2:00pm EDT); US/Canada Attendee Dial-in: 1-855-8607461 (US); Attendee Direct URL: https://uspsmeetings.webex.com/uspsmeetings/j.php?MTID=mef6ed0d2d8023631b8a1f19aba177b27; Conference Code: 869 823 0018
POSTAL REGULATORY COMMISSION: Today the Postal Regulatory Commission (Commission) issued its analysis of the United States Postal Service (Postal Service) fiscal year (FY) 2015 Annual Performance Report and fiscal year 2016 Performance Plan. The Commission is statutorily required to review the Postal Service’s goals and make findings as to whether the Postal Service has met those goals and offer any recommendations regarding the protection or promotion of public policy objectives.
The Commission’s review finds that the Postal Service FY 2015 Report and FY 2016 Plan failed to meet three of four goals established, and partially met the fourth goal.
The report further provides an in-depth evaluation of the Postal Service’s four performance goals: 1) Deliver High-Quality Services, 2) Provide Excellent Customer Experiences, 3) Ensure a Safe Workplace and Engaged Workforce, and 4) Sustain Controllable Income.
Below is a summary of the Commission’s findings.
Hear ye! Hear ye! The latest PostCom postal podcast on some of the issues that will be a part of the Postal Regulatory Commission review of the PAEA rates process has been posted on the PostCom web site.
Five Things You Need to Know
1.) PRC holds USPS' scope of 10-year review in abeyance.
2.) PRC examines USPS 2015 performance goals and 2016 performance plan.
3.) PostCom's President-Elect Lowrance on House Committee on Oversight and Government Reform panel.
4.)USPS files 2017 promotions with the PRC.
5.) PostCom and others ask the PRC to deny the USPS' reconsideration.