[Federal Register Volume 89, Number 97 (Friday, May 17, 2024)]
[Notices]
[Pages 43441-43442]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-10907]


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POSTAL SERVICE


Change in Rates of General Applicability for Competitive Products

AGENCY: Postal ServiceTM.

ACTION: Notice of a change in rates of general applicability for 
competitive products.

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SUMMARY: This notice sets forth changes in rates and classifications of 
general applicability for competitive products.

DATES: The rate change is effective July 14, 2024.

FOR FURTHER INFORMATION CONTACT: Elizabeth Reed, 202-268-3179.

SUPPLEMENTARY INFORMATION: On May 9, 2024, pursuant to their authority 
under 39 U.S.C. 3632, the Governors of the Postal Service established 
price changes for competitive products. The Governors' Decision and the 
record of proceedings in connection with such decision are reprinted 
below in accordance with section 3632(b)(2). Mail Classification 
Schedule language containing the new prices can be found at 
www.prc.gov.

Sarah Sullivan,
Attorney, Ethics & Legal Compliance.

Decision of the Governors of the United States Postal Service on 
Changes in Rates of General Applicability for Competitive Products 
(Governors' Decision No. 24-3)

May 9, 2024

Statement of Explanation and Justification

    Pursuant to authority under section 3632 of title 39, as amended by 
the Postal Accountability and Enhancement Act of 2006 (``PAEA''), we 
establish price changes of general applicability for the Postal 
Service's shipping services (competitive products), specifically, 
Parcel Select. The changes are described generally below, with a 
detailed description of the changes in the Postal Service's associated 
draft Mail Classification Schedule change document. That document 
contains the

[[Page 43442]]

draft Mail Classification Schedule sections with new prices displayed 
in the price charts.
    The Parcel Select price changes for July 2024 are designed to 
better align the Postal Service's product and pricing strategies with 
its operating model and goals. In order to more effectively utilize the 
postal processing and transportation network and realize enhanced 
economies, the Postal Service no longer intends to incent parties to 
aggregate mail volume from multiple shippers and to bring such volume 
directly to the destination delivery unit.
    Accordingly, Parcel Select prices as a whole will increase 25.0 
percent on average in July 2024. For destination delivery unit (DDU) 
entered parcels, the average price increase is 43.4 percent. These 
aggressive price changes for DDU promote full utilization of network 
processing and transportation capacity to achieve lower unit costs by 
realigning rate relationships across entry points. For destination hub 
(Dhub) entered parcels, the average price increase is 0.0 percent. For 
destination sectional center facility (DSCF) entered parcels, the 
average price increase is 8.6 percent. For destination network 
distribution center (DNDC) parcels, the average price increase is 18.6 
percent. Prices for USPS Connect Local will increase 15.9 percent on 
average, in order to align with the DDU prices. No other price changes 
to the Parcel Select product, or any other competitive products, are 
established with this Decision.
    As shown in the nonpublic annex being filed under seal herewith, 
the changes we establish should enable each competitive product to 
cover its attributable costs (39 U.S.C. 3633(a)(2)) and should result 
in competitive products as a whole complying with 39 U.S.C. 3633(a)(3), 
which, as implemented by 39 CFR 3035.107(c), requires competitive 
products collectively to contribute a minimum of 9.9 percent to the 
Postal Service's institutional costs. Accordingly, no issue of 
subsidization of competitive products by market dominant products 
should arise (39 U.S.C. 3633(a)(1)). We therefore find that the new 
prices and classification changes are in accordance with 39 U.S.C. 
3632-3633 and 39 CFR 3035.102 and 104.

Order

    The changes in prices set forth herein shall be effective at 12:01 
a.m. on July 14, 2024. We direct the Secretary to have this decision 
published in the Federal Register in accordance with 39 U.S.C. 
3632(b)(2) and direct management to file with the Postal Regulatory 
Commission appropriate notice of these changes.

    By The Governors:
Roman Martinez IV
Chairman, Board of Governors.

UNITED STATES POSTAL SERVICE OFFICE OF THE BOARD OF GOVERNORS

Certification of Governors' Vote on Governors' Decision NO. 24-3

    Consistent with 39 U.S.C. 3632(a), I hereby certify that, on May 9, 
2024, the Governors voted on adopting Governors' Decision No. 24-3, and 
that a majority of the Governors then holding office voted in favor of 
that Decision.
    Date: May 9, 2024.
Michael J. Elston,
Secretary of the Board of Governors.
[FR Doc. 2024-10907 Filed 5-16-24; 8:45 am]
BILLING CODE 7710-12-P