Discount Rates Changes Announced
The United States Postal Service (USPS) will enter into New Agreements with Package Consolidator Companies Consistent with its Delivering for America (DFA) Strategy
* Postal Service will no longer offer discounted rates through Negotiated Service Agreements for packages entered by consolidators at Post Office Delivery Units
* Since implementation began three years ago, the DFA strategy has driven a revitalized organization capable of achieving its public service mission cost-effectively and sustainably.
What do these changes mean?
Discounts for shipping consolidators, like UPS and DHL, that use these services to get packages delivered to the front door will see an increase in cost, ultimately passed on to the shipper. The good news for the USPS is that it will receive an increase in revenues and improve its efficiencies while encouraging shippers to switch to using their services due to cost and service.
Potential impacts will be on DHL eCommerce, OSM Worldwide, UPS Surepost, and Mail Innovations.
Source: USPS National News
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