USPS seeks pricing flexibility for commercial parcels

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Washington, D.C.—The U.S. Postal Service, seeking ways to increase business, has asked regulators to give it more flexibility in adjusting pricing for lightweight commercial parcels.

In its request to the Postal Regulatory Commission, the USPS asked to reclassify commercial first-class parcels from the category's current “market-dominant” classification to a “competitive” category.

A 2006 law severely restricts rate adjustments affecting so-called market-dominant mail categories, such as first-class mail, standard mail and periodicals. However, with products categorized as “competitive”—priority and express mail fall into this classification—the Postal Service has greater flexibility in adjusting prices up or down and negotiating pricing with commercial customers to compete with other parcel shippers.

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