This is kind of a Big Deal. The Postal Service is working frantically to put zoned pricing into effect for Marketing Mail this coming January. There will be four zones for any entry facility, based on how long it takes to drive there. If, for example, you drop at Baltimore, MD, anything within a 7-hour drive will be considered Zone A. More than 7, but less than 24 hours? Zone B. 24 to 45 hours is Zone C, and anything longer than 45 hours will be Zone D. Easy as A, B, C, D so far.
Here's where it gets serious. Postage rates for your mail will be based on the zone it needs to travel to. Every entry point will have its own set of zones. You should be able to recognize savings by simply driving the mail to the appropriate zone. So, if you’re in Baltimore and you’re mailing to California, just load up the truck and head for California. Voila! You get Zone A rates. Just remember, California is a big state – you may need to send a couple of trucks. SCF discounts will still apply, so if you transport your mail to the destination SCF, you will get both Zone A pricing along with your SCF discount. Hybrid strategies may help replace the DNDC discount being removed this July. For example, if you have mail going to Southern California but not enough to go to multiple SCFs there, you may be able to enter your mail at one SCF and get the SCF discount for mail destined to that SCF, and Zone A rates for mail destined to nearby SCFs.
The zone also impacts service standards. Zone A is 4 days, Zone B is 5 days, Zone C is 6 days, and Zone D is – you guessed it – 7 days. As each entry facility essentially has its own zone structure, calculating when mail should be delivered becomes a monster task.
No prices have been associated with any of these proposed changes yet, so it is difficult to determine how they will impact rates and mailing options. Similarly, it will remain to be seen how it impacts service performance for Marketing Mail. If you continue to drop ship into destination SCFs, you should not see service suffer, “should” being the operative word.
The Postal Service is trying to incorporate these changes in the rate case they will be filing in October to take effect in January 2026. It is a hurried timetable, but the Postal Service seems to be determined to make it happen. Want to read the whole proposal made to the PRC? Really? It’s 75 pages, which is short for this kind of thing. You can see it here: https://prc.arkcase.com/api/prc-dockets/filing/downloadFile?fileId=241863&inline=true