SUMMARY OF CHANGES EFFECTIVE JANUARY 15, 2007
Parcels | Transaction Mail and Direct Marketing Services
Parcel Services
OVERVIEW
As part of our annual price adjustment for all Canada Post services on January 15, 2007, there were price and service changes as follows:
BACKGROUND
Annual price adjustments are consistent with industry practice and are necessary for Canada Post to retain a competitive position in an ever-changing marketplace. This year's increases will support technology enhancements so we can continue to provide our customers with high quality services.
You will have noticed important changes to the guides/price books in support of the 2007 Parcel Services price and service changes.
CUSTOMERS' CUSTOMIZED PRICE BOOK AND CUSTOMER GUIDE
Our Parcel Services customers received a Customized Price Book. This year's Customized Price Book* contained:
- Only the price sheets for the Parcel Services at the levels of discount they are entitled to under their Agreement;
- A Rate Code Look-up Table based on the postal code of their mailing address.
*excludes Book Pre-sort prices. Those prices were included directly in the customer letter to Book Pre-sort agreement owners and users, and not in the Customized Price Book.
The updated Parcel Services Customer Guide will contain information on:
- shipment preparation;
- depositing the items;
- making payment;
- terms and conditions, and much more!
PRICE AND SERVICE CHANGES - PARCEL SERVICES (DOMESTIC)
Consult the table below for an overview of the price and service changes to our suite of domestic Parcel Services, effective January 15, 2007 .For more information, click on the product names.
| Priority Courier* |
2.9% |
The new weight step - "up to 750g"
Third-party On Demand Pick-up |
| Xpresspost |
5.7% |
The new weight step - "up to 750g" |
| Expedited Parcel |
6.5% |
The new weight step - "up to 750g" |
| Regular Parcel |
6.4% |
The new weight step - "up to 750g" |
| Library Books* |
0% |
Effective January 15, 2007 Libraries must:
- Be registered with the Canadian Library Association (CLA)
- Use an electronic shipping system to access Library Book rates
Libraries that are not registered with CLA and do not use an electronic shipping system to generate bar-coded shipping and return labels, will be charged full one-way Regular Parcel counter prices.
Please note that Library Book rates will remain in effect until January 2008 |
| Book Presort |
8% |
100k-piece annual volume threshold |
| Xpresspost Banking |
5% |
No service changes |
| Xpresspost Certified (Mail) |
5.5% |
This spring we introduced an enhanced Xpresspost Certified service providing tracking, Delivery Confirmation Certificates and digital signature image.
Starting January 15, 2007 you will be able to retrieve Delivery Confirmation Certificates for Xpresspost Certified in three different ways:
- PIN Item Search
- Manifest Item Search
- New! Electronic Bulk Retrieval
For more information click Xpresspost Certified
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*In accordance with the Memorandum of Agreement between Canada Post and the Department of Canadian Heritage (DCH). The DCH is responsible for notifying the Canadian Library Association and eligible libraries of the changes.
PRICE INCREASE - OPTIONS
The price for Domestic Coverage for loss or damage will go up $0.05 in 2007, from $0.75 to $0.80 per $100.00 of coverage. There is no other price change to Domestic, USA or International options.
*Mailing Tube Surcharge
Starting on January 15, 2007, we will introduce a flat-rate surcharge of $1.00 on cylinder-shaped mailing tubes. This surcharge will allow us to recover incremental cost, which results from the extra manual processing of these non-standard items (i.e. instability of tubes on equipment). The surcharge will apply to the following Domestic, USA and International Parcels Services, with the exception of USA and International Small Packets, Purolator International and Light Packets (only offered at Retail):
Domestic |
USA |
International |
Priority Courier |
Xpresspost-USA |
Xpresspost-International |
Xpresspost |
Commercial Expedited Parcel-USA |
Int'l Air and Surface Parcel |
Expedited Parcel |
Expedited Parcel-USA |
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Regular Parcel |
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We have also added new fields to the Electronic Shipping Tools (EST), prompting customers to indicate if the item being shipped is a mailing tube. Changes to our Bills of Lading and Bulk Orders (Bulk Manifest) will be introduced gradually.
*Third-party On Demand Pick-up (Priority Courier only)
Effective January 15, 2007, Canada Post will pick up Priority Courier items from a third-party and deliver as indicated. The Agreement holder will be charged for the pickup and delivery services. This convenient option is available for a fee for Priority Courier items and to customers with billing privileges (Refer to section 7.1.1.3 of your Parcel Services Customer Guide for details). Pickup can be arranged up to 5 business days in advance. For a list of locations where our pickup service is available, visit our website at www.canadapost.ca/pick-up
*Correcting customers' over-declared weight and dimensions (Cubing)
Currently, cubing adjustments on customer invoices are only applied for debits. In response to market concerns, effective January 15, 2007, Canada Post will change the current business practice and allow credit adjustments where the In-line Cubing and Re-weigh equipment determines that the customer has over-declared the weight and dimensions of the Parcel on their Orders/Bill of Lading.
PRICE AND SERVICE CHANGES - PARCEL SERVICES (USA AND INT'L)
Consult the table below for an overview of the price and service changes to our suite of USA and International Parcel Services, effective January 15, 2007.
*Addition of New Rate Codes
Effective January 15, 2007, we will be introducing two new rate codes for Domestic Parcel Services and four new rates codes for USA Parcel Services.
Domestic - These new rate codes will allow us to better define our prices to reflect the cost of providing the service. The two new Domestic rate codes (7 & 8) will impact local shipments previously rated within rate code 6, local shipments within the Quebec - Windsor corridor, and shipments within the eastern provinces.
USA - The rate structure for USA Parcel Services will go from three rate codes to seven (excludes Small Packets and Purolator International). This is good news for customers shipping to local and regional USA locations, as they will see prices drop or increase slightly (less than market increases). Customers shipping to national USA locations may see a price increase more in line with the competition, depending on the destination.
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