Stamp Increase Tells a Bigger Story -- Rising Energy Prices

by: Tony Sagami

Tony Sagami (Harvest Advisors) submits: While I think the cost of a first-class stamp is one of the greatest bargains on earth, there is no doubt that rising postage costs have an important affect the bottom line of American businesses. The Postal Rate Commission approved an increase in the price of a first-class stamp by 2 cents to 39 cents. The price increase, if approved by Postal Service Board of Governors, will take effect in January.

The Postal Service is just like any other shipper and is affected by rising energy prices.

The reason this price increase is important news is that it should tell you to expect similar increases from other transportation companies, like UPS, Federal Express, Yellow Roadway, CNF, J.B. Hunt, CSX, Union Pacific, Laidlaw, and American Commercial Lines (the largest Mississippi River barge operator).

By the way, the last time postage rates were raised was in June 2002.


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