USPS: no rate hikes for standard mail in 2010

Postal Service freezes rates for letters but remains mum on plans for Express and Priority services.

By Mark B. Solomon

The U.S. Postal Service said yesterday that it will not raise its rates during 2010 on single-piece parcel post, first-class and standard mail, and deliveries of periodicals, its so-called market-dominant product lines.

The move comes as the Postal Services reels under multibillion dollar losses and steadily deteriorating volumes for traditional products like first-class mail. "While increasing prices might have generated revenue for the Postal Service in the short term, the long-term effect could drive additional mail out of the system," Postmaster General John Potter said in a statement. "We want mailers to continue to invest in mail to grow their business, communicate with valued customers, and maintain a strong presence in the marketplace."

Potter said a decision on pricing changes for so-called market competitive products like Priority and Express Mail, as well as internal products, will be announced in November.

Gerard Hempstead, who heads a consulting firm that specializes in postal and parcel issues, says he expects rates on market competitive products to rise between 5 and 7 percent, effective early January.

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