Winners will be shippers of small, dense packages with low transit time requirements, such as hardware, printed matter and small appliances, Wilkinson said. And of course, there are both weight and package cube thresholds, meaning that outliers on both sides of the density spectrum won’t even qualify for cubic-based pricing.” For those with less dense packages, it would actually represent a cost increase. “For shippers with very dense packages, there will likely be a slight cost advantage.
“Assuming Parcel Select cubic rates follow the same pattern as Priority Mail, the issue will be the structure of the rate tables themselves,” Wilkinson said. Joe Wilkinson, VP of consulting for enVista, said the benefit of cubic pricing on Parcel Select Ground will vary widely from shipper to shipper. “I believe we have been severely damaged by at least 10 years of a defective pricing model, which cannot be satisfied by one or two annual price increases, especially in this inflationary environment,” DeJoy said in remarks to the USPS Board of Governors. Last week, Postmaster General Louis DeJoy warned of “uncomfortable” price increases in future, saying pricing had been out of whack for some time. And as of July 10, First Class mail rates will increase 6.5%. Starting in April, the USPS began charging a $1.50 fee for any packages larger than one cubic foot or greater than 22 inches along any dimension, applying to all Priority Mail Express, Priority Mail and Parcel Select Ground deliveries.
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