July 25, 2017
Subject: Some USPS postage rates increasing on August 20, 2017
Dear IMS customer,
The United States Postal Service (USPS) is increasing rates for segments of the International Priority Airmail (IPA) and International Surface Air Lift (ISAL) services on August 20, 2017. As you know, our normal rate changes take place in January so this is unusual. This is not a standard postage increase but rather the result of renegotiated contracts per the USPS notification below:
United States Postal Service has notified partners with Negotiated Service Agreements of a price increase for International Priority Airmail (IPA) and International Surface Airlift (ISAL) effective August 20, 2017. The increase was planned to coincide with contract renewals which expired in June; however, we granted additional time to allow for coordination of technology changes and client notification. The decision was made to modify the contracts to reflect shape-based pricing to align with our increased costs in these products.
Here’s how the following service groups will be affected (percentages are based on the average of all country groups and piece weights, your actual costs could vary accordingly):
- Commercial ePacket (CeP): No changes
- PMEI and PMI (both Standard and Presort Drop Ship): No changes
- IPA Letters: Increase of 5.4%
- IPA Flats: No changes
- IPA Packages: No changes
- IPA M-bags: No changes
- ISAL Letters: Increase of 16% (Note: It will be much cheaper to route all Letter size pieces via IPA)
- ISAL Flats: Increase of 3.5%
- ISAL Packages: Increase of 3.5%
- ISAL M-bags: No changes
Because costs can vary by destination country, piece size, and weights, we recommend that certain mailings/shipments be quoted if questions. As we’ve always done for customers, we’ll recommend one service over another when it’s advantageous for the customer both rate and service wise. Here’s what we’ll be looking at for items sent IPA and ISAL only:
- Letters: Routing all via IPA (cheaper and faster).
- Flats: With the increase to ISAL (and not to IPA), it becomes cheaper to route certain countries (most notably, Canada) via IPA.
- Packages: Routing all via IPA.
We’re hoping to have rates emailed to all customers within a week. Your business is important to us – we’ll strive to provide the best possible rate and service for customers of all sizes. Thanks for your business!
Mark Bouman, Business Development, Principal
International Mail Service Inc (IMS)