Notice2024-10907
Change in Rates of General Applicability for Competitive Products
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
May 17, 2024
Effective
July 14, 2024
Issuing agencies
Postal Service
Abstract
This notice sets forth changes in rates and classifications of general applicability for competitive products.
Full Text
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<title>Federal Register, Volume 89 Issue 97 (Friday, May 17, 2024)</title>
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[Federal Register Volume 89, Number 97 (Friday, May 17, 2024)]
[Notices]
[Pages 43441-43442]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-10907]
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POSTAL SERVICE
Change in Rates of General Applicability for Competitive Products
AGENCY: Postal Service<SUP>TM</SUP>.
ACTION: Notice of a change in rates of general applicability for
competitive products.
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SUMMARY: This notice sets forth changes in rates and classifications of
general applicability for competitive products.
DATES: The rate change is effective July 14, 2024.
FOR FURTHER INFORMATION CONTACT: Elizabeth Reed, 202-268-3179.
SUPPLEMENTARY INFORMATION: On May 9, 2024, pursuant to their authority
under 39 U.S.C. 3632, the Governors of the Postal Service established
price changes for competitive products. The Governors' Decision and the
record of proceedings in connection with such decision are reprinted
below in accordance with section 3632(b)(2). Mail Classification
Schedule language containing the new prices can be found at
<a href="http://www.prc.gov">www.prc.gov</a>.
Sarah Sullivan,
Attorney, Ethics & Legal Compliance.
Decision of the Governors of the United States Postal Service on
Changes in Rates of General Applicability for Competitive Products
(Governors' Decision No. 24-3)
May 9, 2024
Statement of Explanation and Justification
Pursuant to authority under section 3632 of title 39, as amended by
the Postal Accountability and Enhancement Act of 2006 (``PAEA''), we
establish price changes of general applicability for the Postal
Service's shipping services (competitive products), specifically,
Parcel Select. The changes are described generally below, with a
detailed description of the changes in the Postal Service's associated
draft Mail Classification Schedule change document. That document
contains the
[[Page 43442]]
draft Mail Classification Schedule sections with new prices displayed
in the price charts.
The Parcel Select price changes for July 2024 are designed to
better align the Postal Service's product and pricing strategies with
its operating model and goals. In order to more effectively utilize the
postal processing and transportation network and realize enhanced
economies, the Postal Service no longer intends to incent parties to
aggregate mail volume from multiple shippers and to bring such volume
directly to the destination delivery unit.
Accordingly, Parcel Select prices as a whole will increase 25.0
percent on average in July 2024. For destination delivery unit (DDU)
entered parcels, the average price increase is 43.4 percent. These
aggressive price changes for DDU promote full utilization of network
processing and transportation capacity to achieve lower unit costs by
realigning rate relationships across entry points. For destination hub
(Dhub) entered parcels, the average price increase is 0.0 percent. For
destination sectional center facility (DSCF) entered parcels, the
average price increase is 8.6 percent. For destination network
distribution center (DNDC) parcels, the average price increase is 18.6
percent. Prices for USPS Connect Local will increase 15.9 percent on
average, in order to align with the DDU prices. No other price changes
to the Parcel Select product, or any other competitive products, are
established with this Decision.
As shown in the nonpublic annex being filed under seal herewith,
the changes we establish should enable each competitive product to
cover its attributable costs (39 U.S.C. 3633(a)(2)) and should result
in competitive products as a whole complying with 39 U.S.C. 3633(a)(3),
which, as implemented by 39 CFR 3035.107(c), requires competitive
products collectively to contribute a minimum of 9.9 percent to the
Postal Service's institutional costs. Accordingly, no issue of
subsidization of competitive products by market dominant products
should arise (39 U.S.C. 3633(a)(1)). We therefore find that the new
prices and classification changes are in accordance with 39 U.S.C.
3632-3633 and 39 CFR 3035.102 and 104.
Order
The changes in prices set forth herein shall be effective at 12:01
a.m. on July 14, 2024. We direct the Secretary to have this decision
published in the Federal Register in accordance with 39 U.S.C.
3632(b)(2) and direct management to file with the Postal Regulatory
Commission appropriate notice of these changes.
By The Governors:
Roman Martinez IV
Chairman, Board of Governors.
UNITED STATES POSTAL SERVICE OFFICE OF THE BOARD OF GOVERNORS
Certification of Governors' Vote on Governors' Decision NO. 24-3
Consistent with 39 U.S.C. 3632(a), I hereby certify that, on May 9,
2024, the Governors voted on adopting Governors' Decision No. 24-3, and
that a majority of the Governors then holding office voted in favor of
that Decision.
Date: May 9, 2024.
Michael J. Elston,
Secretary of the Board of Governors.
[FR Doc. 2024-10907 Filed 5-16-24; 8:45 am]
BILLING CODE 7710-12-P
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</html>Indexed from Federal Register on May 17, 2024.
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