Change in Rates and Classifications of General Applicability for Competitive Products, 92201-92202 [2024-27132]

Agencies

• Postal Service

[Federal Register Volume 89, Number 225 (Thursday, November 21, 2024)]
[Notices]
[Pages 92201-92202]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-27132]


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POSTAL SERVICE


Change in Rates and Classifications of General Applicability for 
Competitive Products

AGENCY: Postal ServiceTM.

ACTION: Notice of a change in rates and classifications of general 
applicability for competitive products.

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SUMMARY: This notice sets forth changes in rates and classifications of 
general applicability for competitive products.

DATES: Applicability date: January 19, 2025.

FOR FURTHER INFORMATION CONTACT: Elizabeth Reed, 202-268-3179.

SUPPLEMENTARY INFORMATION: On November 13, 2024, pursuant to their 
authority under 39 U.S.C. 3632, the Governors of the Postal Service 
established price and classification changes for competitive products. 
The Governors' Decision and the record of proceedings in connection 
with such decision are reprinted below in accordance with section 
3632(b)(2). Mail Classification Schedule language containing the new 
prices can be found at www.prc.gov.

Christopher Doyle,
Attorney, Ethics & Legal Compliance.

Decision of the Governors of the United States Postal Service on 
Changes in Rates and Classifications of General Applicability for 
Competitive Products (Governors' Decision No. 24-7)

November 13, 2024

Statement of Explanation and Justification

    Pursuant to authority under section 3632 of title 39, as amended by 
the Postal Accountability and Enhancement Act of 2006 (``PAEA''), we 
establish prices and classifications of general applicability for the 
Postal Service's competitive products. The changes are described 
generally below, with a detailed description of the changes in the 
Postal Service's associated draft Mail Classification Schedule change 
document. That document contains the draft Mail Classification Schedule 
sections with classification changes in legislative format, and new 
prices displayed in the price charts.
    As shown in the nonpublic annex being filed under seal herewith, 
the changes we establish should enable each competitive product to 
cover its attributable costs (39 U.S.C. 3633(a)(2)) and should result 
in competitive products as a whole complying with 39 U.S.C. 3633(a)(3), 
which, as implemented by 39 CFR 3035.107(c), requires competitive 
products collectively to contribute a minimum of 9.6 percent to the 
Postal Service's institutional costs. Accordingly, no issue of 
subsidization of competitive products by market dominant products 
should arise (39 U.S.C. 3633(a)(1)). We therefore find that the new 
prices and classification changes are in accordance with 39 U.S.C. 
3632-3633 and 39 CFR 3035.102 and 104.

I. Domestic Products

A. Priority Mail Express

    Overall, the Priority Mail Express price change represents a 3.2 
percent increase. In 2023, we consolidated the Commercial Base and 
Commercial Plus price categories into one Commercial price category and 
differentiated the ``Local, 1, 2'' Zone prices. For January 2025, this 
new structure will be maintained. Dimensional weighting, which was 
introduced for all zones in 2019, will also continue in 2025.
    Retail prices will increase an average of 3.2 percent. The price 
for the Retail Flat Rate Envelope, a significant portion of all 
Priority Mail Express volume, will increase to $31.40, with the Legal 
Size and Padded Flat Rate Envelopes priced at $31.65 and $32.25, 
respectively.
    The Commercial price category will increase 3.2 percent on average. 
Commercial prices will, on average, reflect a 12.4 percent discount off 
of Retail prices. New for 2025, a Live Animal and Perishable Handling 
Fee of $7.50 will be introduced under Priority Mail Express to cover 
the additional costs associated with handling and transporting these 
items.

B. Priority Mail

    On average, the Priority Mail prices will be increased by 3.2 
percent. Similar to Priority Mail Express, the Commercial Base and 
Commercial Plus price categories were consolidated into one Priority 
Mail Commercial price category and ``Local, 1, 2'' Zone prices were 
differentiated in 2023. For January 2025, this new structure will be 
maintained. Dimensional weighting, which was introduced for all zones 
in 2019, will also continue in 2025.
    Retail prices will increase by an average of 3.2 percent. Retail 
Flat Rate Box prices will be: Small, $10.65;

[[Page 92202]]

Medium, $19.15; Large, $26.30 and Large APO/FPO/DPO, $25.05. Thus, the 
Large APO/FPO/DPO Flat Rate Box will be $1.25 less than the Large Flat 
Rate Box. The regular Flat Rate Envelope will be priced at $10.10, with 
the Legal Size and Padded Flat Rate Envelopes priced at $10.40 and 
$10.85, respectively.
    The Commercial price category will increase by 3.2 percent on 
average. Commercial prices will, on average, reflect a 20.8 percent 
discount off of Retail prices. New for 2025, a Live Animal and 
Perishable Handling Fee of $15.00 will be introduced under Priority 
Mail to cover the additional costs associated with handling and 
transporting these items.

C. Parcel Select

    On average, Parcel Select prices as a whole will increase 9.2 
percent. For destination delivery unit (DDU) entered parcels, the 
average price increase is 10.3 percent. For destination hub (Dhub) 
entered parcels, the average price increase is 0.0 percent. For 
destination sectional center facility (DSCF) destination entered 
parcels, the average price increase is 7.1 percent. For destination 
network distribution center (DNDC) parcels, the average price increase 
is 9.7 percent. For Connect Local, introduced in 2022, the average 
price increase is 5.4 percent. Dimensional weighting, which was 
introduced for all zones in 2019, will continue in 2025. To account for 
inflation, the fee for Forward and Return to Sender will be increased 
to $3.60, while the fee for Address Correction Service (ACS) with 
Shipper Paid Forwarding/Returns will be increased to $3.00.

D. USPS Ground Advantage

    USPS Ground Advantage, introduced in July 2023, is the Postal 
Service's flagship ground package product. The existing structure will 
be maintained for 2025. Overall, USPS Ground Advantage prices will 
increase 3.9 percent on average. Retail prices will increase 4.9 
percent on average, while Commercial prices will increase 3.2 percent 
on average. The Alaska Limited Overland Routes (LOR) price category 
will see a 9.0 percent average increase for January 2025. New for 2025, 
a Live Animal and Perishable Handling Fee of $7.50 will be introduced 
under USPS Ground Advantage to cover our additional handling costs for 
these items.

F. Domestic Extra Services

    Premium Forwarding Service (PFS) prices will increase 6.1 percent 
on average in 2025. The retail counter enrollment fee will increase to 
$26.85. The online enrollment option, introduced in 2014, will increase 
to $24.70. The weekly reshipment fee will increase to $27.80. The 
reshipment fee for PFS Local, which was introduced in 2019 for P.O. Box 
customers, will increase to $27.80. Prices for Adult Signature service 
will decrease to $8.40 for the basic service and $8.65 for the person-
specific service. Address Enhancement Service prices will increase 8.9 
percent on average in 2025. Competitive Post Office Box prices will be 
increasing 5.7 percent on average, within the existing price ranges. 
Package Intercept Service will increase to $18.35. The Pickup On Demand 
fee will remain unchanged for 2025, at $26.50. Premium Data Retention 
and Retrieval Service (USPS Tracking Plus), which was introduced in 
2020, will have its prices increase 86.3 percent on average in 2025. 
The fee for Label Delivery Service, introduced in 2023 under the 
Competitive Ancillary Services product, will remain at $1.55 for 2025.
    Finally, in 2025, the fee for deterring overweight/oversized items 
found in the system will be increased from $100.00 to $200.00. The 
upper bounds for the price ranges for Greeting Cards and Stationery and 
Officially Licensed Retail Products will be increased to accommodate 
current and future offerings.

II. International Products

A. Expedited Services

    PMEI will be subject to an overall 4.9 percent increase. Commercial 
Plus prices will be equivalent to Commercial Base.

B. Priority Mail International

    The overall increase for Priority Mail International (PMI) will be 
4.9 percent. Commercial Plus prices will be equivalent to Commercial 
Base.

C. International Priority Airmail and International Surface Air Lift

    Published prices for International Priority Airmail (IPA) and 
International Surface Air Lift (ISAL) will increase by 4.9 percent and 
28.9 percent, respectively.

D. Airmail M-Bags

    The published prices for Airmail M-Bags will remain the same on 
average and not increase, although a few prices will change slightly.

E. First-Class Package International ServiceTM

    The overall increase for First-Class Package International Service 
(FCPIS) prices will be 4.9 percent. Commercial Plus prices will be 
equivalent to Commercial Base.

F. International Ancillary Services and Special Services

    Prices for several international ancillary services will be 
increased, including a 5.0 percent increase for International 
Certificate of Mailing, a 10.0 percent decrease for International 
Insurance, a 4.8 percent increase for International Registered Mail, 
and a 3.5 percent increase for the Customs and Clearance Delivery Fee.

Order

    The changes in prices and classes set forth herein shall be 
effective at 12:01 a.m. on January 19, 2025. We direct the Secretary of 
the Board of Governors Office to have this decision published in the 
Federal Register in accordance with 39 U.S.C. 3632(b)(2) and direct 
management to file with the Postal Regulatory Commission appropriate 
notice of these changes.

    By The Governors:


/s/
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Roman Martinez IV,
Chairman, Board of Governors.

United States Postal Service Office of the Board of Governors

Certification of Governors' Vote on Governors' Decision No. 24-7

    Consistent with 39 U.S.C. 3632(a), I hereby certify that, on 
November 13, 2024, the Governors voted on adopting Governors' Decision 
No. 24-7, and that a majority of the Governors then holding office 
voted in favor of that Decision.

    Date: November 13, 2024.

/s/
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Michael J. Elston,
Secretary of the Board of Governors.

[FR Doc. 2024-27132 Filed 11-20-24; 8:45 am]
BILLING CODE 7710-12-P