![]() These pricing inaccuracies resulted from the following errors attributed to 38 of the 195 (19 percent) SCFs: We found incorrect postage rates for mail sent between 21,570 ZIP pairs (2.6 percent of the 836,310 ZIP pairs). The Postal Service did not always charge the correct postage rates for mail subject to zone pricing. We issued an interim report on June 24, 2019, that identified an issue related to incorrect postage rates charged for mail entered at the Palatine, IL SCF. The labeling list titled L005 3-Digit ZIP Code Prefix Groups – SCF Sortation, known more commonly as “L005”, associates each of the 915 3-digit ZIP Code prefixes to the 195 SCFs for mail processing. To assist mailers in the preparation of mailing labels and to ensure accurate mail routing/processing, the Postal Service publishes labeling lists. ![]() The larger the “zone” number (and thus the farther a piece must travel), the higher the price charged to the mailer. Each zone has defined distances based on the mileage between the originating and destinating SCFs-for example Zone 2 encompasses distances of 51-150 miles, while Zone 3 encompasses distances of 151-300 miles. The Postal Service currently uses 10 zones in its postage pricing: one local zone, eight other domestic zones (Zones 1 to 8), and one zone for special cases, such as mailings to the Republic of Palau and the Federated States of Micronesia (Zone 9). The Postal Service makes two distance calculations for each potential originating and destinating SCF “pair” and selects the lesser mileage of each calculation to represent the “final” distance between the two SCFs. The Postal Service has a complex methodology for determining the distances used in its zone pricing, utilizing mileage calculations based on the geospatial coordinates (latitude and longitude) of each SCF. ![]() In this example, these SCF locations are 64 and 45 miles away from the respective post offices. For example, a mailpiece originating from Byron, IL (Zone Improvement Plan (ZIP) Code 61010) and destined to Frederick, MD (ZIP Code 21701) will be processed by and priced in accordance with the servicing SCF. When calculating distance, the Postal Service uses the mileage between its starting (originating) and ending (destinating) mail processing facilities, which are the 195 Sectional Center Facilities (SCF) throughout the country. ![]() The Postal Service considers a variety of factors when setting the price of an individual mailing including the mail class, weight, and distance. The total volume of competitive and market dominant mail that included zone pricing was 10.1 billion of the 142.4 billion pieces (7 percent) in fiscal year 2019. These rates apply to select mail products including Priority Mail, Bound Printed Matter, Parcel Select, First Class Package Service, and Periodicals. Our objective was to evaluate the accuracy of Postal Service “zone”-based postage rates. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |