Huge Increases in Some Canada Post Rates and Service Cuts

[widgetc]

I just heard on CBC radio that early in 2014 the letter rate will go from 63 cents to $1.00 or $0.85 if you buy stamps in bulk. Nothing was said about the heavier letters or U.S. and international rates but they are likely to drastically rise too.

Also over the next 5 years home delivery will end completely being replaced by super-group mail boxes and 8,000 jobs will be eliminated.

[bb_cool_stuff]

Good Gawd, so I am looking at the 2013 rate increases. DUH !

Does it really surprise you that I am a year behind ?

[mr.elmwood]

I am sitting here absolutely peeing myself laughing. I can't see for the tears. Tears are rolling down my legs.

[mr.elmwood]

So, as I collect what is left of my wits, yer gonna stop selling internationally, starting in January, 'cause it got too expensive, a year ago, and yer just finding out now?

Yer real job is saving lives, right? Being up to the minute informed of all that is the latest and most important, right?

Postage confuses you?

I am never setting foot in a hospital again.

[bb_cool_stuff]

I wouldn't say I'm saving lives, just prolonging them.

Thank Gawd for established protocol.

Guess I'm a bit behind the times, I just found out I can no longer leave feedback for buyers.

Please remind of the Small Packet increases for 2014 a month before the increases in 2015.

However Brandes link is accurate.

Hows that for a save ?

[cumos55]

Shipping outside of Canada and the US will get more difficult with each passing year...

Flat rate shipping within Canada will become more difficult  because of the differential in shipping cost to remote areas.

Just when buyers get adjusted to the new rates established by Canada Post... there are a new set of rates, and another year of adjustment.

And  will this next year be my last year of selling on eBay?  The probability of that happening goes up with each passing year

[mr.elmwood]

http://www.youtube.com/watch?v=grbSQ6O6kbs

[bb_cool_stuff]

Love that clip.

My wife just summed it up best "Your six years of anatomy now qualify you to be a bonehead." followed by her full body laugh.

I think I'm going to be ribbed the rest of the day.

So does anyone know the postal increases for Small Packet Air ?

Too late to save my butt on here today.

[mr.elmwood]

They never announce until just before. Long range planning wants me to "believe" it will be category specific. Like last year when some went up, but 500g-1k went down. You know they have UPS and FedEx rate charts in front of them.

[pjcdn2005]

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@brandeentertainment wrote:

lettermail in canada does not bother me as i do not use stamps so the increase is very easy to absorb but for US and International the increase is huge as I can not use lettermail as my post office does not allow it so I have to use light packet.

OUCH

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Double ouch!

On that page above that chart CP states ....."To address increased processing costs related to the service, Canada Post will raise Light Packet rates. To mitigate customer impact, the rate increase will be phased in over several years, and will vary depending on weight and destination"

https://www.canadapost.ca/cpo/mc/aboutus/news/announcements/light_packet.jsf

The U.S. and international light packet rates up to 100gr are going up 25-35% this year alone. I would have hoped that that percentage would have been over several years..not one year. Sheesh.

I have to admit that the lowest rate going up to 150gr will be handy at times although the majority of my light packet items are well under 100gr.

[pjcdn2005]

If they changed the small packet U.S. limit to 1.5 or 2kg, that would be very  nice!

BB...that was funny! LOL

[mr.elmwood]

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@pjcdn2005 wrote:

If they changed the small packet U.S. limit to 1.5 or 2kg, that would be very  nice!

BB...that was funny! LOL

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Kinda where I am. Shouldn't there be a blend of size AND weight? I get the dimensional weight concept, but, why, when I have two identical dimensioned parcels, the one over 1K costs so much more? I get the weight aspect of cost, but, it is the overall weight of the shipping container, etc, not the individual parcel that determines shipping cost to CP.

It, further, makes no sense, when the USPS is using flat rate boxes which are based on size, not weight.

[brandeentertainment]

The printed stickers if is what I use for Lettermail .. The store clerk prints the sticker postage which means I only have to deal with a minor increase ...

I check something at home and the light packet increase will work out ok too because most of my regular movies come in under 150 grams so even though the light items have roughly a 70 cents increase I now have most of my parcels that fell under the 1-200 gram $5.53 Cost falling under the new 100-150 grams ..

Win some lose some but I think this may turn out alright for me ... Time will Tell the tale ..

[pjcdn2005]

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@mr.elmwood wrote:

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Kinda where I am. Shouldn't there be a blend of size AND weight? I get the dimensional weight concept, but, why, when I have two identical dimensioned parcels, the one over 1K costs so much more? I get the weight aspect of cost, but, it is the overall weight of the shipping container, etc, not the individual parcel that determines shipping cost to CP.

It, further, makes no sense, when the USPS is using flat rate boxes which are based on size, not weight.

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Small packet pricing is based only on weight. Regular and Expedited in Canada and Expedited to the U.S. are based on dimensions not weight.

[pierrelebel]

"The store clerk prints the sticker postage which means I only have to deal with a minor increase ..."

You better check that one carefully.

Lettermail and letterpost are going UP March 31st when you buy your postage at the post office.

You would be much better off purchasing postage stamps widely available at deep discount.

[pocomocomputing]

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@ypdc_dennis wrote:

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@widgetc wrote:

I just heard on CBC radio that early in 2014 the letter rate will go from 63 cents to $1.00 or $0.85 if you buy stamps in bulk. Nothing was said about the heavier letters or U.S. and international rates but they are likely to drastically rise too.

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Cost of using stamps will rise around 35% for most weight classes of Lettermail.

Letters are to get a stamp rate and a metered rate.

There will be no rate change in January as originally planned.
Instead the new Lettermail rates start March 31, 2014

First rate shown is if you use stamps, second rate shown is for using metered mail, last is the
2013 cost with percentage increase if you use stamps.

Canada
30g  - 0.85  / 0.75 from 0.63  (up 35%)
50g  - 1.20  / 1.15 from 1.10  (up  9%)
100g - 1.80 / 1.60 from 1.34  (up 34%)
200g - 2.95 / 2.60 from 2.20  (up 34%)
300g - 4.10 / 3.65 from 3.05  (up 35%)
400g - 4.70 / 4.15 from 3.50  (up 34%)
500g - 5.05 / 4.45 from 3.75  (up 35%)

USA
30g  - 1.20  / 1.15 from 1.10  (up  9%)
50g  - 1.80  / 1.60 from 1.34  (up 34%)
100g - 2.95 / 2.50 from 2.20  (up 34%)
200g - 5.15 / 4.52 from 4.36  (up 18%)
500g - 10.30 / 9.05 from 7.60  (up 35%)

International
30g  - 2.50 / 2.20 from 1.85   (up 35%)
50g  - 3.60 / 3.19 from 2.68   (up 35%)
100g - 5.90 / 5.19 from 4.36  (up 35%)
200g - 10.30 / 9.05 from 7.60  (up 35%)
500g - 20.60 / 18.10 from 15.20  (up 35%)

Info source: Canada Post website

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I think there is an error in the rates given by Canada Post for the 50 gram class above for all three services. The increase as noted above is just 9%. It is out of line with the others who are all 35%. The post above is correct in copying the Canada Post announcement. I just think Canada Post made a mistake in their document.

Past announcements of rate changes (last year in particular) have had errors so my feeling is that the 50 gram rates are a mistake at a 9% increase. I really doubt that Canada Post would pass up on an opportunity to get a 35% increase (versus 9%) on the 50 gram rate.

Not that it matters much since the 50 gram rate is rarely used by me and probably most sellers. Business mail might use it a lot.

The Canada Post web page with the above changes is here in case anyone want to see the original documents.

http://www.canadapost.ca/cpo/mc/business/productsservices/rates.jsf

[pocomocomputing]

In this document,

http://www.canadapost.ca/cpo/mc/assets/pdf/business/parcels_changes_2014_en.pdf

Canada Post claims an increase of 3.2% in parcel services overall.

I always thought Light Packet was a part of Small Packet since it used the CN22 form for Small Packet. I guess it is considered Part of Lettermail/Letterpost as far as rates go. The increases in Light Packet are way above the 3.2% in the document above. I guess Canada Post will make it part of whatever service to get suit their needs in justifying it.

It appears that Canada Post is playing word games with the 3.2% increase in rates statement by adding a surcharge of $5 to parcels for certain areas within Canada. Most likely the 3.2% overall increase does not include the surcharge. There should be no need for a surcharge, it should be in the rate tables for those destinations. But it would increase the overall % increase so I think they are playing with the numbers.

[pocomocomputing]

I wonder how PayPal shipping for Canada Post options as programmed by Pitney Bowes will do this year. It was quite the disaster last year. Previous years went okay so maybe I am just being pessimistic based on last year, lol. 

I do hope they do it right and on time for the Canada Post services that PayPal supports.  I am wondering if they will get the new 150 gram breakpoint correct for Light Packet. As well, the $5 surcharge for some destinations within Canada. Time will tell.

[pocomocomputing]

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@pjcdn2005 wrote:

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@brandeentertainment wrote:

lettermail in canada does not bother me as i do not use stamps so the increase is very easy to absorb but for US and International the increase is huge as I can not use lettermail as my post office does not allow it so I have to use light packet.

OUCH

---

Double ouch!

On that page above that chart CP states ....."To address increased processing costs related to the service, Canada Post will raise Light Packet rates. To mitigate customer impact, the rate increase will be phased in over several years, and will vary depending on weight and destination"

https://www.canadapost.ca/cpo/mc/aboutus/news/announcements/light_packet.jsf

The U.S. and international light packet rates up to 100gr are going up 25-35% this year alone. I would have hoped that that percentage would have been over several years..not one year. Sheesh.

I have to admit that the lowest rate going up to 150gr will be handy at times although the majority of my light packet items are well under 100gr.

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When I read the statement

To mitigate customer impact, the rate increase will be phased in over several years, and will vary depending on weight and destination"

I also thought for a moment that the large increase would be over a couple of years. When I saw it was the beginning of a series of increases over the next years, it really makes you wonder what is happening long term to Light Packet.

[brandeentertainment]

IF light packet ever dies my sales to the US will go with it  but I think this change Will keep things running like nothing happen thanks to the 100 to 150 grams change ..

Here is something that confused me ...

I went to ship out one day and forgot to make light packet label so told clerk just ship lettermail .. They had a regional Trainer there ..

Trainer said no it has to go as light packet as it is not lettermail ..( I get that and have never sent movies lettermail to the US this was a 1 time isolated situation..

I said to the Trainer sorry normally don't do this just forgot to print label ..

Then I asked can you explain the difference between Lettermail and Canada and Lettermail in the US because right now your ringing though 200 movies as lettermail within Canada but you would not ring up 1 as lettermail to the US and I am pretty sure even though the country changes the Defenition and standards of the shipping method at hand has not changed one bit...

His Response was to ignore me and pretend like he was busy training again ..

The truth of the matter is if they did that with lettermail in Canada they would go belly up just as quick as me ...

Anyways no moral to the store just found it strange ..

[toff3]

By international convention of the Universal Postal Union, Small Packet and Light Packet (which is an invention of Canada Post, AFAIK unknown in any other of the world's postal systems) belong to the lettermail (first class mail) category. I suspect that a fuel surcharge on FCM is illegal so it has never been applied to Small or Light Packets. However, in other respects, CP seems to lump Small Packets in with Parcels, which may be lucky for us as, if CP is to be believed, Parcel rates will not increase as much letter rates.

Tom