Royal Mail adds sneaky price hike on USA parcel costs

[county]

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Anyone else noticed?

Royal Mail have just hiked prices - all on the quiet.

The big change is the addition of World Zone 3 (=USA) which used to be in World Zone 1. Letters are unchanged, but small parcels are up around 50%. A 1.25Kg packet to USA was £16.35 and is now £24.33

We didn't find out until a customer paid us the £16.35 for a 1155 gram package to the USA and we took the duly stamped package to the post office. Apparently, and not announced, world zone 3 (which appears to be just the USA) had been created on 1st July.

And there was me thinking, this is the prime country the UK is wanting to strike a free trade deal with - now that we've left the EU.

[CMJ]

I think this is a consequence of USA's threat to withdraw from the UPU.

Last year, the UPU (Universal Postal Union) agreed to allow the US to set terminal dues/prices themselves from 1st July.

This met the US administration’s stated objective – to increase how much they charge other countries for delivery. It averted their threat to leave the global network.

It will see a significant increase of over 100% in the rates we pay for last mile delivery in the US from 1st July. We will have to pass on these costs – we will not profit in doing so.

I wouldn't be surprised to see other country's Postal Administrations following suit; possibly, they already have.

Chris.

[22028]

Well, German Post did not increase the rate, they just made it mandatory to send goods (even stamps or a cover is considered as goods) as parcel..., price 3-4 times compared to a letter...

[60022Mallard]

I suspect it may actually have something to do with those straight dealing Chinese.

Did not the USPS get flooded with Chinese origin signed for mail / packets, which the sender pays virtually nothing for, but costs a packet to deliver?

Look on your eBay items from China and see how unbelievably little postage you pay for that odd sized packet of rubber chair feet.

I suppose when you are a centrally controlled economy / dictatorship you can do what you like to help your exports and stiff the opposition!

[mozzerb]

Thanks for the notice John -- I hadn't seen this. I've updated the GBPS rates section with a couple of new pages:

http://www.gbps.org.uk/rates/overseas/airmail-from-1947/airmail-zone3-2020-date.php

http://www.gbps.org.uk/rates/overseas/airmail-from-1947/confirmed-zone3.php

Interestingly, the new Zone 3 rates for International Tracked (the branding for the UPU express service) are not the same as the rates for International Tracked and Signed (the branding for the UPU registered service) -- unlike every other destination! Presumably due to something specific in what the USA are charging.

(If anyone can provide a scan of covers to the USA illustrating either or both of the new rates, btw, please do get in touch!)

[Global Administrator]

Well, German Post did not increase the rate, they just made it mandatory to send goods (even stamps or a cover is considered as goods) as parcel..., price 3-4 times compared to a letter...

Well no you, yourself advised us only yesterday of a COVID SURCHARGE that German post has recently added to parcel of so many Euro per Kilo. So rates HAVE gone up ex Germany.

This UK new rate was raised here weeks back by those reading the posts - by Norvic I think?

Glen

[22028]

Well, German Post did not increase the rate, they just made it mandatory to send goods (even stamps or a cover is considered as goods) as parcel..., price 3-4 times compared to a letter...

Well no you, yourself advised us only yesterday of a COVID SURCHARGE that German post has recently added to parcel of so many Euro per Kilo. So rates HAVE gone up ex Germany.

This UK new rate was raised here weeks back by those reading the posts - by Norvic I think?

Glen

That was a complete different case and a COVID SURCHARGE for certain items due to COVID-19 crisis. This case here is for a sneaky price hike...

[norvic]

This UK new rate was raised here weeks back by those reading the posts - by Norvic I think?

Glen

I don't remember that (a lot has happened here recently) but it was forecast in these posts
https://www.stampboards.com/viewtopic.php?p=5815802#p5815802

What we didn't know then was what the impact would be here - I think most people thought US would be hitting China hardest. It will now make it worth splitting some parcels into smaller packets.

Rates to follow

[norvic]

These are the new prices for the various services available to the USA.

Note that ALL letter and Large Letter rates remain the unchanged, so this only affects items over (any of) 353 mm x 250 mm x 25 mm.

The new Zone 3 applied to only the United States of America (inc Alaska) and previous rates were the same as Zone 1, so you can easily see how much of an increase has taken place.

Basic Airmail

International Tracked and Signed

International Tracked

[60022Mallard]

This UK new rate was raised here weeks back by those reading the posts - by Norvic I think?

Glen

I don't remember that (a lot has happened here recently) but it was forecast in these posts
https://www.stampboards.com/viewtopic.php?p=5815802#p5815802

What we didn't know then was what the impact would be here - I think most people thought US would be hitting China hardest. It will now make it worth splitting some parcels into smaller packets.

Rates to follow

Perhaps its a UPU rule that last mile charges must be the same for everyone.

I expect my posting above critical of China has been logged by Big Brother. I would probably have lost "Brownie points" already if I lived there, affecting my job chances, housing etc., China having taken surveillance of its population to world leading levels.

[parkgateman]

I went to the Post Office to send 2 lots of sales from here in the UK to Hong Kong on the 2nd July expecting to be charged £1.63 each , however the postwoman told me prices had gone up on the 30th of June , and they cost me £2.42 each - a big increase .

[county]

Thank you all for the additional comments. At least it seems that Royal Mail isn't to blame for the actual hike in rates and it is now clear where the blame lies.

However I do deplore Royal Mail's lack of publicity about this unexpected change in rates.

Royal Mail adjust their rate around March/April each year and, until now, those rates have been valid for a year. Based on these rates, we quoted and charged our customer the £16.35 postage to send a 1155 gram book to the States. It wasn't until we took the stamped-up package to our local post office that we found out about this new World Zone 3. We then had to add more stamps to make up to the new rate of £24.33. Basically we have lost £8 on the deal (and a lot more if you add in the hassle time).

[mozzerb]

I went to the Post Office to send 2 lots of sales from here in the UK to Hong Kong on the 2nd July expecting to be charged £1.63 each , however the postwoman told me prices had gone up on the 30th of June , and they cost me £2.42 each - a big increase .

Those are the 20g and 100g Zone 1 rates from the increase on 23rd March -- the letters must have been over 20g (easily done).

[norvic]

Agreed - rates to Hing King have not changed since March

[Global Administrator]

China having taken surveillance of its population to world leading levels.

Not really.

Britain has had far more CCTV coverage of its citizens for many years I think you'll find than ANY other country on a per capita basis.

Boris is onto you. HE knows what you had for lunch.

Sadly Dump's decision to remove USA from UPU will cost many of us a fortune in hiked parcel rates - me for starters.

[60022Mallard]

We may well have more CCTV per head, but that does not produce / record data on individuals - yet.

I think you will find that our Chinese friends do track and record data on individuals.

The Chinese have a system of brownie points which get taken away if you do not "play ball in many minor ways", such that if you lose enough points you find that job closed to you, housing hard to find etc.

It tends to be what happens in one party states with leaders paranoid about any opposition as many in Eastern European countries. East Germany had the Stasi with a huge network of informants, the Chinese have moved that on to using technology.

I partook in a virtual meeting held by a local MP last night. She commented at one stage "Did you hear that click?". My response was "Do not worry, it is only Huawei logging in".

Many a true word spoken in jest.

[Global Administrator]

I partook in a virtual meeting held by a local MP last night. She commented at one stage "Did you hear that click?". My response was "Do not worry, it is only Huawei logging in".
.

When MI5 bug and tap you, there will undoubtedly be clicks.

Huawei are silent.

[norvic]

Agreed - rates to Hing King have not changed since March

Apologies to anybody in Hong Kong. I was typing very early in the day and did not notice the error.

[norvic]

A further increase in many airmail rates has been announced today to take effect from 1 September. One effect is to extend differential pricing for Zone 3 to Large Letters.

Royal Mail has had to make changes to some of its International rates having experienced significant rising air freight costs due to passenger planes being grounded to limit the movement of people between countries to contain COVID19.

The new 1st September tariff is necessary in order to meet the costs we have absorbed to date.

There are no new Definitive or Country Definitive stamps issued at the new values. Post Office branches will make up the value of the postage with a range of stamp values.

All the details of the new prices (including PDFS of the various price regimes) can be found on the page at https://www.royalmail.com/prices2020.

The images show only the change to basic airmail, but there is a knock-on effect on all premium services.

Royal Mail non-premium airmail rates effective 1 July 2020 (left) and 1 September 2020 (right)

These changes see many rates return to being a multiple of 5p, ie ending in 5 or zero instead of odd amounts.

With these new rates requiring the addition of many make-up stamps, I think we can expect more printings soon, especially for the 1p & 5p which haven't appeared in 2020.

£1.45 needs 1p + 2p
£1.70 needs 5p + 2p, or just 2p
£2.50 needs 5p + 2p + 1p
£2.55 needs 10p + 2p + 1p

[Global Administrator]

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Interesting Ian .. tried to find it on Royal Mail website, and they unhelpfully do not seen to bother advising what ZONE Australia is in - Zone 2 it appears, altho none of these rates new or proposed, match that!

https://www.royalmail.com/sending/international/country-guides/australia

[norvic]

This is in the July 1 rate leaflet, as well as the 23 March one.

The Zone map is in the leaflet: most people looking to work out a current rate would go here

https://www.royalmail.com/price-finder

[faro]

Hey, but the price of surface mail is going down and if you use a CN22B customs label (only available at the Post Office presumably because of the way they've worked the numbering?) you notionally receive tracking free of charge to cover eBay's requirements. I'm not sure that works for every country but I'm told it does for the USA.
With a decent chance that the package will be sent by air in error, of course...

So much for the "loophole" I'd been using where it was cheaper to send two large letter boxes to the US rather than a single small parcel. That one goes bye-bye...

The other increases were to be expected due to the Covid-19 catch-all excuse/justification - it clearly wasn't only the increase in USPS's "last mile" fee with the Zone 3 shenanigans last time around as the exact amount of that charge hadn't yet been decided according to other sources.

[Global Administrator]

This is in the July 1 rate leaflet, as well as the 23 March one.



The Zone map is in the leaflet: most people looking to work out a current rate would go here

https://www.royalmail.com/price-finder

I repeat my simple question that Royal Mail does not seem to address. Nor does their website as I repeat.


''WHAT zone is the country of AUSTRALIA in''?

[chrisclifford]

Yes Australia is Zone 2
Page 9 of PO latest prices - Valid 1 July 2002

[Global Administrator]

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Thanks, Chris .. at last, a clear answer to a simple question.

No-one here sees these brochures, so urging those here to read it was totally useless advice, and of course the dopey website does not bother to define zones.

So at last I get the answer - some rates to here up near 50% - yikes.

[norvic]

This is in the July 1 rate leaflet, as well as the 23 March one.



The Zone map is in the leaflet: most people looking to work out a current rate would go here

https://www.royalmail.com/price-finder

I repeat my simple question that Royal Mail does not seem to address. Nor does their website as I repeat.


''WHAT zone is the country of AUSTRALIA in''?

I should have acknowledged that the website was deficient in telling what the Zones were, but unless you had the rates leaflet, Zones don't actually matter. The information provided is sufficient, and the price-finder page does the calculation without you needing to know the Zone.

I illustrated the rates leaflet in response to the other whinge in your post:

altho none of these rates new or proposed, match that!

... because the £6.41 rate is shown quite clearly.

[norvic]

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Thanks, Chris .. at last, a clear answer to a simple question.

No-one here sees these brochures, so urging those here to read it was totally useless advice, and of course the dopey website does not bother to define zones.

So at last I get the answer - some rates to here up near 50% - yikes.

HELL, how much help do you need? I provided the link to the PDF is my first post - the leaflet-PDF tells you the rates, tells you the Zones, and includes the map showing which countries are in which Zones. My images were a small extract, not a definitive statement.

IN this case Royal Mail is not deficient at all, and to that extent neither is its website which doesn't mention the zones in pricing, so there is no need to know the zones.

[norvic]

And for those who want a clearer image than Chri's excellent photo:

[Global Administrator]

I should have acknowledged that the website was deficient in telling what the Zones were, but unless you had the rates leaflet, Zones don't actually matter.

The point I can NOW see is that heavier large letters, and parcels up to 2 kilo will cost me about 50% more than now. Outrageous.

Royal Mail Website of course does not show that massive price hike - your side by side images did, as long as one knew Australia was Zone 2 which was WHY I asked was zone it was in. So Zones DO matter when being raped and pillaged like that.

Glen

Cannot see 11.87 rate that this one bore, stating weight was 455g, that I got this week, but certainly will be a few quid more if posted after new hike.

[mozzerb]

Cannot see 11.87 rate that this one bore, stating weight was 455g, that I got this week, but certainly will be a few quid more if posted after new hike.

That's because it's International Tracked, not International Standard (i.e. straight airmail), so a different page of the leaflet ... £11.87 is the Large Letter rate for 250-500g. New rate will be £13.90.

[Global Administrator]

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Thanks - well those rates do not seem to be getting hiked SO heavily?

[Global Administrator]

Is there any compo cover on this rate?

For 100g letters seems pretty reasonable priced if they do get a signature?

[mozzerb]

Is there any compo cover on this rate?

For 100g letters seems pretty reasonable priced if they do get a signature?

There's very little compensation cover at all in the Royal Mail international service now.

Default is up to £50, paying an extra £2.50 in the Tracked/Signed services gets you a whole £250. Basically, if it's valuable, insure it yourself.

[Global Administrator]

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Someone wants to charge me 15 quid for a single 100 quid stamp.

So this ~7.7 quid service gives him a Lodgement receipt and is tracked?

I'll suggest that - if 50 quid cover is in there it will be fine I am sure. He can use stamps on that service I guess?

[mozzerb]

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Someone wants to charge me 15 quid for a single 100 quid stamp.

So this ~7.7 quid service gives him a Lodgement receipt and is tracked?

I'll suggest that - if 50 quid cover is in there it will be fine I am sure. He can use stamps on that service I guess?

You can use stamps if you want to work the rate out yourself.

As for what the services provide -- ha! That's an area where the leaflets really are confusing, given their use of marketese terms for services without explaining the actual differences. As far as I've been able to piece it together (quote below taken from here):

"International Tracked", "International Signed", and "International Tracked & Signed"

From 2014 Royal Mail have offered three services under the above names. More recently, they have used the name "International Confirmed delivery services" as an umbrella term. All three cost the same (except as noted below), and the Royal Mail leaflets and website do not do a good job of explaining the factors that go into the choice of service to use! The notes below attempt to explain these, but the key point is that the choice depends largely on what facilities are offered by the destination country.

International Tracked & Signed "provides full end to end tracking, a signature on delivery and online delivery confirmation", while International Signed is "tracked until the point the letter leaves the UK" and "provides the reassurance of a signature taken on delivery". These are two variants of the UPU registered service and countries accept either one or the other, depending on whether they have online tracking or not. Originally the services could not be used to Post Office Box addresses (as these frequently do not provide a signature on delivery, and are generally not directly available to non-Post Office delivery companies that Royal Mail may transfer mail to in certain countries – e.g. Germany). More recently (from autumn 2017) Royal Mail merely recommend that they not be used to PO Box addresses. Africa and the Middle East, where PO Boxes are the normal method of delivery, have been an exception throughout.

International Tracked "combines full end to end tracking with online confirmation of delivery". It is the current UK branding for the UPU express service, which many countries appear to treat as entirely distinct from the registered service (unlike the UK). Quite a number of countries therefore accept International Tracked, and International Signed ... but not International Tracked & Signed, as they do not have online tracking! (This apparent anomaly is of course simply an artefact of the names chosen in the UK by Royal Mail.) In practice, the choice of Tracked or Signed may depend on the requirements of the sender's customer and/or insurer.

As a result of an ECJ ruling, from 31st January 2011 certain "enhanced" services that were not part of the basic universal provision became liable to VAT on the total charge, including postage, when used to EU destinations. International Tracked (but not the other two) is considered such a service and so costs 20% more when used to the European Union. As both International Tracked and International Tracked & Signed are generally available for EU destinations, the main use case for the more expensive service is where the packet is sent to a PO Box.

From 2020, the prices for International Tracked and International Tracked and Signed to the new Zone 3 (USA) differ.

[faro]

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Someone wants to charge me 15 quid for a single 100 quid stamp.

So this ~7.7 quid service gives him a Lodgement receipt and is tracked?

I'll suggest that - if 50 quid cover is in there it will be fine I am sure. He can use stamps on that service I guess?

Unless they have the only member of staff who doesn't know how to enter "pre-paid" into the machine, yes!

It's not uncommon to see people seeking to make more profit on the p&p charge than from selling the stamp(s).

A £15 quote from a seller where the actual charge for tracked postage is £7.67 isn't too unusual. If they have a stack of discount postage that would probably have cost them £4.50-ish which, even allowing for eBay and PayPal's cut, shouldn't really result in a charge of much more than £5 to break even.

[norvic]

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Thanks - well those rates do not seem to be getting hiked SO heavily?

In days gone by when the 'Registered' or 'Special Delivery' services had a R or SD fee, it was a simple matter to add that fee on to the standard airmail rate. Thus if the basic rate increased but the fees did not, the % increase on the premium service would be lower.

When these new bar-coded services were introduced the 'fee' concept went out of the window and individual prices were set for the combined premium services. Generally the rate is the same for Tracked, Signed and Tracked and Signed although I haven't checked all rates in the two latest leaflets.

But be grateful you are not in the EU. For the Tracked service (but not for the other two) the premium attracts VAT @20%. Of course no VAT is levied by the customer's country on receipt (unlike your GST on receipts) but page 12 shows the effect on prices. This only lasts until 31 January next of course when our EU transition ends and Royal Mail can stop charging (I think).