USPS Slashes Rates, But Can it Handle the Surge?

Spend Matters

Spend Matters welcomes another guest post from Jim Haller, program director of transportation services at NPI, a spend management consultancy, focused on eliminating overspending on IT, telecom and shipping.
It’s no secret that the United States Postal Service has been on a mission to grow its parcel business. But the rate cuts that went into effect on Sept. 7 may be one of its most aggressive moves yet. The pricing changes affect two Priority Mail offerings – Commercial Base and Commercial Plus – and spotlight USPS’s increasing focus on attracting large e-commerce customers. For customers shipping at least 50,000 parcels a year, price cuts could be more than 50 percent.
As one would expect, UPS and FedEx are none too happy, especially after they’ve just announced they will charge shippers by dimensional weight for all package sizes come 2015. Documents filed by UPS and FedEx with the Postal Regulatory Commission claim the USPS is using its…

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