Postal Rates

New postal rates go into effect Sunday. First-class stamps increase 2 cents to 39 cents, postcards go up a penny to 24 cents and flat-rate priority mail rises from $3.85 to $4.05. The increase, the first since 2002, is needed to fulfill the requirement in a federal law passed in 2003 that the Postal Service establish a $3.1-billion escrow account, with use of the funds to be determined by Congress at a later date.

Richard Maher can't remember the last time he wrote a personal letter to anyone — and he works for the U.S. Postal Service. That's how bad things have gotten for the government agency that, in the age of email, Facebook and Twitter, not to mention FedEx and United Parcel Service, announced last week that it lost $5.1 billion in the last year. And the losses would have been more than double that amount — a record $10.6 billion — if Congress hadn't allowed the postal service to engage in a little creative bookkeeping and shift an outstanding $5.5-billion payment for retiree healthcare into the current fiscal year.

Postal rates rose Thursday by 50% for domestic mail and 25% for international mail, the government said.

When most postal rates rise on Monday -- among other things, mailing a first-class domestic letter will cost 2 cents more -- Washington will be depending on businesses like PouchSmart Inc. of Santa Monica, which still considers the post office to be the best option for delivering its products. PouchSmart designs flexible pouch packaging with a resealable spout, such as a single-serve juice container. Its products can also be used in other applications, such as a squeezable applesauce pouch.

When most postal rates rise on Monday -- among other things, mailing a first-class domestic letter will cost 2 cents more -- Washington will be depending on businesses like PouchSmart Inc. of Santa Monica, which still considers the post office to be the best option for delivering its products. PouchSmart designs flexible pouch packaging with a resealable spout, such as a single-serve juice container. Its products can also be used in other applications, such as a squeezable applesauce pouch.

Postal rates for charities, newspapers, schools and libraries will increase Sunday for the second time this year under a new rate schedule approved by the Board of Governors of the Postal Service. The first-class rate was not changed. The rate increases, approved by an 8-0 vote, range from averages of 2% to 20% for particular types of nonprofit and newspaper mail. They are designed to make up for the $72-million difference between what Congress proposed and what it actually appropriated.

A federal judge refused Monday to stop Sunday's hike in postal rates, ruling he lacked jurisdiction to order the Postal Service to delay the increase for two months. The request for postponing the increase came from trade groups representing mail-order and direct-mail firms.

The cost of sending most letters will rise by a penny to 33 cents on Sunday despite a four-year run of strong profits by the Postal Service. Postal officials said the increase is needed because rising costs are eating into income. It will also cost more to mail newspapers, magazines and most packages, although the price of mailing heavier letters will fall. Sunday's increase had been expected to take effect last summer.

Although the latest proposed postal rate hike has drawn the ire of consumers and businesses alike, private mail carriers are not complaining. In fact, they say, the increases will boost their business at the expense of the U.S. Postal Service. "The momentum just increases," said Howard Rosen, president of Publishers Express, which delivers mostly magazines in the Atlanta area. "More people will jump on the bandwagon."

China raised domestic mail rates by 150%--the first increase in four decades--and called it an "aid to national price reform." The Ministry of Posts and Telecommunications gave only a few hours' notice of the price changes, which became effective immediately. Postage for a local letter was raised to 2.1 cents from 0.85 cents and letters between cities went to 4.25 cents from 1.7 cents.

The post office will get an extra 2 cents' worth when you mail a letter starting in May. The U.S. Postal Service announced that the price of a first-class stamp would increase to 44 cents on May 11. That leaves plenty of time to stock up on Forever Stamps, which will continue to sell at the current 42-cent rate until the increase occurs. Forever Stamps remain valid in the future regardless of rate hikes. "The Postal Service is not immune to rising costs which are affecting homes and businesses across America today," said Postmaster General John E. Potter.

Gas prices are skyrocketing, food is going through the roof. And to add insult to inflationary injury, it will soon cost more to pay your bills. On Monday, almost all postal rates will increase. "We're trying to send out as much as possible before it hits," said Albert Munez, 25, standing in line Thursday at the main post office in Pasadena. At his feet was a large rubber tub stuffed with packages containing vintage Porsche parts that his company sells.

Consumers apparently still believe a penny saved is a penny earned, as many rushed this week to buy "forever stamps" that will help them avoid a pending one-cent rate hike in first-class postage. The U.S. Postal Service announced this week that the price of mailing a standard letter will rise from 41 cents to 42 cents beginning May 12.

UPS said it would increase rates for ground, air express and international shipments that originate in the United States by an average 4.9%, effective Dec. 31. United Parcel Service Inc. said the increase for air express and international shipments is based on a 6.9% increase in the base rate, less a 2% reduction in the current fuel surcharge. The increases announced by the Atlanta company appear to be in line with those recently announced by Memphis, Tenn.-based FedEx Corp.

The postal rate increase that goes into effect today comes at a crucial time for the United States Postal Service. With Americans increasingly paying bills online and using e-mail for both personal and business correspondence, the Postal Service is facing a steady decline in first-class mail, its most profitable service. At the same time, its labor and fuel costs continue to rise. The changing conditions, Postmaster Gen. John E.

People using flat-rate priority-mail boxes are getting a bit of a break. Mailing the boxes will cost $8.95, regardless of weight, when the new postal rates take effect May 14, the postal Board of Governors announced. The Postal Regulatory Commission had recommended an increase to $9.15 from the current $8.10 charge. The U.S. Postal Service asked the commission to reconsider and reduce the charge to less than $9, and the commission agreed to the lower rate.

It's called the "forever stamp" -- and it might just take that long for customers to catch on to it. Unveiled Thursday, the 41-cent stamp is eternally valid for first-class postage, regardless of how far rates climb in the future. The American Postal Workers Union has called it "a major victory for the American people," but few folks in the line at the post office at the Federal Building in Westwood had heard of their "victory" -- and even fewer were planning to buy the stamp.

The cost to mail a first-class letter looks likely to rise again -- but in the future, postal customers may not need to buy those annoying little 1- and 2-cent stamps to make up the difference. The U.S. Postal Service is poised to introduce its first "forever stamp" that would always be valid for mailing.