Royal Mail have announced that from 1 July 2020 they will be introducing a separate zone for the USA (World Zone 3) and increasing the prices of parcel services to America.
These price changes are as a result of exceptional cost increases outside of their control, though please note there are no changes to letter and large letter prices.
Royal Mail statement re changes to parcel charges to the USA. What you need to know:
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.
We have seen 95% less air passenger flights as a result of Covid-19[1]. We are having to use air freight instead. This is considerably more expensive. It has led to a five-fold increase in our conveyance costs to the US following the outbreak of Covid-19. As a business, we have absorbed these costs to date. But, from 1st July, we are going to recover our best estimate of future conveyance costs in this financial year. We are closely monitoring the cost of conveyance and may reduce our prices accordingly in the future.
Parcel prices are changing for the following International ‘On Account’ and Franking services to the USA:
- International Tracked & Signed
- International Tracked
- International Standard
At Royal Mail, we always aim to deliver the best value international services for our customers. We understand that many companies and households are finding it very hard in the current economic environment. Therefore, it is with regret that we are making these changes. We have considered them carefully. In doing so we have sought to minimise any impact.