By Richard P. Weiss
Retail Associate, US Postal Service, Fox Chase Station
Founder/Writer, Postal991.com
RichardPWeiss@aol.com
For the first time ever, the U.S. Postal Service has assigned postage rates for full-rate single piece First Class mail pieces based upon their processing category. For large parcels, a new procedure for calculating a “dimensional weight” on Priority Mail pieces as well as a change to the balloon rate assessed for both Parcel Post and Priority Mail parcels has also been introduced. There have been no changes to regulations regarding Nonmachinable and Oversize surcharges on packages mailed at Parcel Post rates.
First Class Rates by Processing Category
Effective May 14, 2007, First Class postage for letters weighing one ounce or less increases from 39 cents to 41 cents. Postage assessed for each additional ounce decreases from 24 cents to 17 cents. However, after a letter exceeds 3.5 ounces, it crosses into the processing category of “Large Envelope,” or “Flat.” Between 3.6 and 4 ounces, the postage for this mail piece now reflects the postage required for a 4 ounce flat. Unlike requirements in place before the rate change, rates now vary for First Class Mail pieces based on their processing category (Letter, Large Envelope/Flat, and Parcel). A letter weighing one ounce or less costs 41 cents; however a flat of the same weight costs 80 cents, and a parcel, $1.13. Within each processing category, each additional ounce requires 17 cents up to the maximum weight for First Class Mail, 13 ounces.
Nonmachinable Surcharge Assessment
A letter weighing one ounce or less that meets any of the nonmachinable characteristics described in DMM 101.1.2 is subject to an additional nonmachinable (non-standard) surcharge of 17 cents. This would bring a one ounce nonmachinable letter up to the two ounce rate of 58 cents. Characteristics that determine that a mail piece is nonmachinable include an aspect ratio (length divided by height) of less that 1.3 or greater than 2.5. Letters with an address parallel to the shorter dimension, letters covered with plastic, string, buttons or those containing pencils or other materials making the thickness uneven also fall into the nonmachinable category. However, unlike before the rate change when a nonstandard surcharge was assessed for a one ounce letter exceeding the any of the maximum specifications for a letter (making it a flat), such a mail piece now requires postage for a one ounce (or less) flat of 80 cents.
Category Dividing Lines
A letter becomes a flat when it exceeds 11 ½ inches in length, 6 1/8 inches in height, or ¼ inches in thickness. Under the new mail classification requirements, a letter also becomes a flat when it exceeds 3.5 ounces in weight.
A flat becomes a parcel when it exceeds any of the maximum dimensions for a flat: Length: 15 inches, height: 12 inches, thickness: ¾ inch. Flats that are rigid, i.e. difficult or impossible to bend are also considered parcels and charged accordingly. For example, an 8 ½” x 11” envelope containing a license plate would require postage pertaining to the parcel processing category.
Priority Mail Surcharges
Balloon rates pertain to large Priority Mail parcels, as before the rate change; however they only apply to parcels mailed from local through Zone 4 for packages that measure over 84” up to 108” in combined length and girth. Parcels subject to the balloon rate are assessed at the 20 pound rate, rather than the 15 pound rate that had been assessed before the rate change. Priority Mail Parcels mailed to Zones 5 through 8 are assessed either by weight or by “dimensional weight,” whichever is greater. The Postal Service has added the concept of postage based on size rather than physical weight to more closely match the charges incurred by transportation companies that charge for shipping based on the physical space a parcel occupies rather than by its actual weight.
Calculating Dimensional Weight
Retail Associates utilizing the POS system will appreciate the help the POS system provides in calculating dimensional weight. Those working with manual systems will need to perform calculations in order to obtain a dimensional weight and use it to determine postage, but only if it exceed a parcel’s actual physical weight. For a parcel over one cubic foot (1728 cubic inches) sent to locations corresponding to Zone 5 through 8, the number of cubic inches for the parcel, divided by 194, equals the “dimensional weight.” This formula attributes 194 cubic inches to one pound (or a density of about 8.9 pounds per cubic foot). To determine the dimensional weight of a parcel, multiply its length, width, and height (in inches) to obtain its volume in cubic inches. Divide the result by 194 to find its dimensional weight. For irregularly shaped parcels, multiply its length, height (at its thickest point) and width (also at its thickest point) and multiply the result by .785. This adjustment factor takes into account that the parcel doesn’t take up as much space as a box with rectangular sides. Divide this result by 194 to determine its dimensional weight.
Parcel Post Surcharges
Large packages mailed at Parcel Post rates continue to require nonmachinable and balloon rate surcharges. Balloon rates still apply to packages weighing less than 20 pounds mailed at Parcel Post rates to all zones when they exceed 84 inches in combined length and girth, up to 108 inches. These surcharges now apply postage rates at the 20 pound rate. Parcels are also subject to nonmachinable surcharges if they exceed 34 inches in length, 17 inches in height, 17 inches in width, or weigh more than 35 pounds. Small parcels are subject to nonmachinable surcharges if they are less than 6 inches long, 1/4 inch thick, 3 inches high, or weigh less than 6 ounces. Packages shaped like cans, rolls, tubes, or wooden or metal boxes are also subject to nonmachinable surcharges. See DMM 101.7.2 for additional Parcel Post nonmachinable standards.
Oversize Surcharges
An oversize surcharge still applies to parcels over 108 inches but no more than 130 inches in combined length and girth, mailed at Parcel Post rates. The maximum size limit of 108 still applies for parcels mailed at Priority Mail Rates.
Informed Customers
Postal customers need to know that the new Postal Service initiative to link postage costs to shape and size characteristics more accurately accounts for shipping and processing costs. Customers can save money on postage costs by mailing their items using the smallest processing category possible, i.e. folding a document to fit in a smaller envelope to pay lower costs by mailing the document as a letter rather than a flat. When mailing larger items or contents requiring larger capacity cartons, Postal customers can reduce or avoid size related surcharges by using the smallest box that will safety and securely accommodate their items.
The new rate structure more accurately reflects processing costs to collect, process, and deliver mail items of various shapes and sizes. By more accurately assessing processing costs based on mail piece dimensions, the Postal Service has taken the steps needed to reduce mail processing costs while continuing to offer customers affordable rates, unsurpassed value, and top notch service.