Monday, February 03, 2014

Rural Alaskans struggling with USPS changes in parcel service, which raised their average rate 35%

A small change by the U.S. Postal Service is costing rural Alaskans big time. USPS changes that took effect Jan. 26 include the replacement of Parcel Post service with "Standard Post," a service that costs an average of 35 percent more, Devin Kelly reports for the Anchorage Daily News.

Many budget-conscious rural Alaskans often travel to Anchorage to shop at Costco then have the items shipped home to avoid the higher costs local businesses are forced to charge, Kelly writes. For example, a local grocery store might sell 10 pounds of sugar for $16.50, while the same item sells at Costco for $4.98.

Sending a 17-pound package now costs 4.9 percent more that it previously did, a 25-pound package 22 percent more and a 50-pound costs 53 percent more, Kelly writes. "Bypass Mail, more commonly used by businesses for large shipments, will see a more modest increase. Those packages, at least 70 pounds in weight and consolidated onto 1,000-pound pallets, will cost 6.75 percent more to send or an extra $4 for a 70-pound package." There is also concern about how smaller businesses will be able to keep up "against retail giants like Amazon, which typically ship through Priority Mail."

Democratic Sen. Mark Begich has already "sent a letter to Postmaster General Patrick Donahue, expressing his concern over numerous issues with mail processing in Southeast Alaska, including parcel post shipping," Kelly writes. "His staff said the senator was planning to meet with Donahue in the coming weeks." A spokesperson for Republican Sen. Lisa Murkowski said she is also in talks with the Postal Service. (Read more)

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