Increased shipping costs may raise stamp prices

By Staff
Melissa Cason, FCT Writer
The U.S. Postal Service has proposed a raise in shipping costs that is expected to go into affect later this spring. The proposal is asking for a three-cent increase from 39 cents to 42 cents.
"I know there are some changes on the way for shipping packages but we are not aware of any increase in stamp cost," Earl Wilcher, Russellville Postmaster, said.
Wilcher said that post offices are usually notified of a stamp rate increase months before taking affect so that preparations can be made.
"We knew about a year before the last postage increase," Wilcher said.
However, Debbie Hough, customer relations coordinator for the U.S. Postal Service said that increase of postage is expected to take affect after this May and will cover operational costs. The 2006 increase was to fund a mandate the government put on the postal service to put $3.1 billion in escrow.
"We've been facing operational challenges just like any business," Hough said.
The U.S. Postal Service has been operating like any other business, outside of the government since 1971, when it stopped receiving tax dollars.
"The only revenue we have is from stamps and shipping charges," Wilcher said.
Rising gas prices, employee health coverage costs, and equipment costs all contribute to the proposed increase.
"A lot of people don't realize that when gas goes up a penny, it costs the Postal Service billions per day," Wilcher said.
In addition to the proposed stamp increase, the Postal Service has proposed change the way they charge for shipping packages. They are expected to go from a weight based price structure to a space-based structure.
Wilcher is aware of the new standards for package shipment. The new system will charge more for items that take up more room in transit regardless of weight.