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INTERNATIONAL SHIPPING MADE EASY Quick, Easy, Convenient Goes International The U.S. Postal Service is proposing changes to make international mail products more clear-cut and easy to use. The changes will introduce the most familiar and trusted USPS domestic product names — First-Class Mail, Priority Mail and Express Mail — into the international product portfolio. The four new international products: Global Express Guaranteed, Express Mail International, Priority Mail International and First-Class Mail International will be available for customer purchase at Post Offices and online at usps.com. A detailed summary of each of the four new products and other services appears below. “These exciting new changes will open international business opportunities for package shippers,” said Anita Bizzotto, chief marketing officer and executive vice president for the Postal Service. “The ease of online shipping will be especially attractive. Add the convenience of free packaging supplies from USPS, Free Package Pickup at your home or office, and the Postal Service has you covered around the globe.” Available online tools will make international mailing easier, now combining customs forms and address labels for many products shipped via the Internet. Soon, online mailing will be easier on the budget too — with discounts for postage purchased using Click-N-Ship at usps.com or through authorized postage vendors. Customers who purchase postage using Click-N-Ship at usps.com or through an authorized online provider, will receive discounts of 10 percent on Global Express Guaranteed shipments, 8 percent on Express Mail International shipments, and 5 percent on Priority Mail International shipments. Mailers also will be able to use the same recognizable packaging for international shipments that they use for domestic, and popular flat-rate envelope and flat-rate box shipping options will be added for even more convenience. The Postal Service is adding the popular flat-rate envelope as an option in Express Mail International, and expanding the flat-rate options for Priority Mail International to include a flat-rate box option in addition to the popular large-size flat-rate envelope. Customers can continue to use existing international and domestic packaging while supplies remain available. Although this redesign includes a proposal to increase international product prices, USPS products will still be priced lower than comparable services of other international carriers. International product prices will increase 13 percent on average, a change necessitated by cost increases that have occurred during a price freeze from January 2001 through January 2006. The price and product changes allow USPS to address changes in the international shipping market while remaining below the cumulative change in the Consumer
Price Index (CPI). International
prices were essentially frozen from
January 2001 to January 2006. This
freeze was followed by a 5.9 percent
increase on Jan. 7, 2006, which was
required to support a federally mandated
escrow obligation. Since 2001,
USPS costs have increased while
alternative carriers have made yearly
price increases. As a result, USPS
international prices lagged behind
both the CPI and the prices offered
by alternative carriers on comparable
products.
As with the Postal Service domestic price change proposal (usps.com/ ratecase), the proposal for international mail reflects changes in operations and in the marketplace. Both domestic and international proposals will enhance efficiency, offer attractive choices, and ensure that all types of mail cover their costs. The Postal Service also proposes to reassign some countries from one rate group to another because of changes in operations and to simplify the rate group structure. This also places all countries in the same rate group for all international services. At the same time, the Postal Service is consolidating overlapping services. Summary of New International Products and Services Global Express Guaranteed Global Express Guaranteed (GXG) service is an international expedited delivery service provided through an alliance with FedEx Express. GXG provides reliable, high-speed, datecertain service with money-back delivery guarantee to over 190 countries. The Postal Service proposes to simplify the pricing structure of Global Express Guaranteed by combining the existing document and non-document price structure into one. USPS is proposing an average price increase of 10.1 percent for GXG. Express Mail International The Postal Service is renaming Global Express Mail to Express Mail International and will continue to provide reliable, high-speed service to more than 190 countries with money-back delivery guarantee to select destinations. Document reconstruction insurance and merchandise insurance up to $100 are provided at no additional cost. Optional additional merchandise insurance is available for a fee. The Postal Service also proposes to regroup Express Mail International’s destination country rate groups based on geography and market factors. This will consolidate 13 country groups into 10. An additional customer convenience includes offering two flat-rate envelope prices, one for Canada and Mexico, and one for all other countries. |
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