USPS: no rate hikes for standard mail in 2010

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.