Mailing Basics: What is a Periodical?

How well do you know your United States Postal Service mail classes? It’s probably not a question you’ll be asked in an elevator, in the checkout line at the grocery store, or at a cocktail party, but an occasional review of the regulations is definitely worth the time it takes to read this blog.

Let’s focus specifically on Periodicals as this class of mail is relevant to many scholarly publishers. According to USPS rules:

The Periodicals class of mail is designed for newspapers, magazines, and other periodical publications whose primary purpose is transmitting information to an established list of subscribers or requesters. Periodicals must be published at regular intervals, at least four times a year from a known office of publication, and be formed of printed sheets. There are specific standards for circulation, record keeping, and advertising limits. There are special lower postage prices for Nonprofit, Science-of-Agriculture, and Classroom Periodicals.

In addition, there is no minimum weight but there is a maximum weight of 70 lbs.

Regarding the standards for circulation mentioned in the statement above, did you know that the statement of ownership for Periodicals mailing includes electronic copies in the total circulation calculated? Technically known as PS Form 3526-R, Statement of Ownership, Management, and Circulation (Requester Publications Only), the form was updated in 2012 to allow claims for electronic copies to count towards total circulation if 50% of all distributed print and electronic copies are paid above a nominal price. To calculate the total circulation, a PS Form 3256 worksheet is required.

For more information on Periodicals and other mailing classes, regulations, and procedures, see Business Mail 101 on the USPS website.  

Postal Service Releases Aggressive Five-Year Business Plan

A five-year plan has been drafted by the United States Postal Service in order to communicate to key stakeholders the vital role that the United States Postal Service plays in the U.S. economy.

This 37 page plan highlights several topics that have been the forefront of discussion(s) throughout 2013.  While a majority of this plan addresses the financial situation of the Postal Service, it also features the risks and sensitivities the company could be taking in releasing an aggressive plan.

This five-year plan offers a cost reduction program to help the business eliminate debt (p.17).  To regain self-sufficiency, this USPS suggests requiring the USPS Health Care Plan, which would resolve RHBF pre-funding.  Also suggested is a more streamlined governance model, and the ability to expand on products and services (p.27).

After these projects have been achieved, the Postal Service believes that this will allow for debt repayment (p.30).  If met, the company is certain this will allow for revenue growth, which will then enable “efficiency improvements” such as mail enhancement, package growth, and growth of digital products (p.33).

While the company addresses the further economic risks associated with this five-year plan (p.34), they realize the overall debt will continue to grow without legislative assistance (p.37).

House Resolution 933 Halts Proposed Five-Day Delivery Schedule

Last Wednesday, Postmaster General Patrick Donahoe addressed a House committee about the Postal Service’s current business model.  In a statement released Wednesday that highlighted his speech, the Postal Service acknowledged that the proposed five-day delivery schedule will not be initiated.

In this statement, the Postal Service said the reasoning behind this decision was specific language in House Resolution 933 that prevented implementation of the proposed five-day schedule.  Wednesday’s statement provided additional details after information released by the Postal Service on April 10 described House Resolution 933 as a “Continuing Resolution.”  MailBlogx covered this House decision in March.

Last Wednesday’s statement is the first official announcement addressing that the implementation of the five-day delivery schedule would be postponed due specifically to restrictions in House Resolution 933.

“Our customers require certainty, especially about something as fundamental as our delivery schedule. And so, we announced that we would delay implementation of our new schedule until we gained legislation giving us the ability to move forward,” Donahoe said last Wednesday.

Donahoe also told the House committee that the Postal Service’s current business model is unsuccessful due to the company’s inability to adapt to a “changing marketplace.”  He also added that the Postal Service could not continue to stay on its current path.

To read more about House Resolution 933, including specific progress dates, visit govtrack.us.

Economy and Technology Not Main Villains in $16 Billion Postal Service Loss

Last week, the Postal Regulatory Commission released their Annual Compliance Determination Report (ACDR) from the 2012 fiscal year.  This report highlights legal issues, the financial condition, and overall performance.

In an opening letter from Chairman Ruth Goldway, a breakdown is provided that sheds a dim light on the Postal Service’s financial woes.  With a loss of $16 billion in 2012, many may be curious as to how this is possible.

$11.1 billion of the loss was from required pre-paid expenses to the Retiree Health Benefits Fund (RHBF).  For the first time since funding the RHBF was legally mandated in 2006, the Post Office has defaulted on this payment.  The RHBF directly relates to the Postal Accountability and Enhancement Act (PAEA), which requires an additional $33.9 billion be paid to the RHBF by 2017.  This includes the $11.1 billion that the USPS has already defaulted on.

In a feature titled “How Healthcare Expenses Cost Us Saturday Postal Delivery” in Time Magazine, Reporter Josh Sanburn stated that paying the RHBF was possible in 2006 when the post office was healthy.  Sanburn also points out that the Post Office was hit hard by a shift in digital communication and the financial recession since 2006.

If the Post Office was not forced to contribute to this fund, the deficit would only be around $5 billion.  The ACDR reported that $2.4 billion of the remaining deficit was due to a workers’ compensation liability adjustment and the other $2.4 billion was from operating losses.

In the ACDR report, Goldway also stated that the Postal Service cannot adequately support needed innovations and will now need to focus on cutting costs.  On page 27 of the report, the Commission said that while the RHBF expenses don’t impact day to day operations, the Post Office could “successfully operate without paying toward the RHBF.”

Echoing what Sanburn reported in February, the ACDR also took notice of the permanent change in mailer behavior rather than defaulting that fiscal woes could be caused by the economy.  The Commission continued by stating that the increase in internet access, structural changes in advertising markets and the use of social media should also be taken into account when assessing the 5.8% decline in Standard Mail or other operating losses.

Delivery Debacle: Confusion about Proposed USPS Five-Day Schedule

Has Congress approved USPS’ proposed five-day delivery schedule?  News reports are mixed.

Has congress denied the USPS’ request to cease Saturday delivery?  News outlets seem to be in a debacle about where the proposed schedule stands.

According to Yahoo News, congress will force the Postal Service to keep delivering on Saturdays.  CNN Money also reported that Congress has forced the USPS to cease delivery of first-class mail.

A story published yesterday by the New York Times stated that the Government Accountability Office believes the USPS doesn’t have the authority to set the delivery schedule.  The Times did not report that Congress officially denied the USPS’ plan.

Political blog Think Progress stated that Congress has rejected the five-day proposal and that the proposal still needs Congressional approval in the same article.

Meanwhile, the USPS has not released any new information on the proposed delivery schedule.  On Monday, Postmaster General Patrick Donahoe gave a speech to the National Postal Forum (NPF) in California that spoke about the importance of traditional mail.

“The Postal Service literally puts your message in your customers’ hands.  People slow down and absorb what they receive.  They process it.  They retain it.  In a chaotic electronic world, that differentiates our channel,” Donahoe said to the NPF.

Global Mail Delivery Delays Update: March 11, 2013

Here are the latest global hot spots that may delay mail delivery as reported by International Delivery Solutions.

Ecuador: Torrential rain in the western state of Guayas resulted in flash flooding on March 2-3rd, including in the capital city of Guayaquil.

China: On March 3rd a magnitude 5.2 earthquake struck near the city of Dali in Yunnan province.
Colombia: Major transportation delays due to truck driver strikes and road blockages March 5-8th.

India: On March 5-7th up to 100,000 demonstrators in New Delhi. Around 150 trade associations in New Delhi; a number of commercial and transport disruptions.
Venezuela: Due to the death of Venezuela president Hugo Chavez on Tuesday, March 5th. Mail and operational delays are expected over the next period due to government shutdowns.
France: Two ground handling companies at Roissy Charles de Gaulle Airport in Paris have gone on strike with effect from March 7th, which is affecting processing times for both inbound and outbound mail.

Other Notables:
Western Australia:  Labor Day March 4th
Indonesia: Mar 8th, Nyepi, the Hindu Day of Silence, Airports & Businesses Close
Australia: Canberra Day Mar 11th
Australia: Labor Day (Victoria and Tasmania Mar 11th

Canada Easter Planning – Canada Post is closed on Good Friday March 29th and Easter Monday April 1st.

Additional Details Available on Proposed Five-Day Mail Delivery Schedule

A measure which included a requirement that the USPS operate a six-day delivery schedule through September passed on Wednesday by a House vote of 267 to 151 and will now move to the Senate.  The New York Times featured this House decision on Wednesday.

Last month, MailBlogx highlighted the USPS’ proposed five-day delivery schedule that would have started this August.  Although cutting Saturday mail delivery would save about $2 billion each year, this change must be approved by Congress before it will become official.

Despite its 80 percent approval from postal customers, some are in opposition of the proposed changes.  Representative Jose E. Serrano was quoted in the Times article stating that there should be no misunderstanding on the USPS delivery schedule.

“Earlier this year, the Postal Service announced they thought they had legal authority to end Saturday delivery.  That analysis was wrong, but now there is no room for misunderstanding,” Seranno said to the Times.

In a statement released just a month earlier, the USPS stateed that Congress’ approval is needed to not only restore financials, but to also “urgently address matters outside the Postal Service’s control.”