A mail rate increase scheduled for May 14 will push the price of milk and staples sky high in rural Alaska, according to Alaska residents and businesses.
“This increase will definitely close the gap for using air freight over U.S. mail,” said Michelle Adams, logistics manager for the Alaska Commercial Co. “We are getting closer and closer to air freight rates.”
The new rate will push a 1-ounce first class letter up to 41 cents, and a postcard will now cost 29 cents. The real increase in the mail rate will be felt harder by those in the rural Alaska, according to Adams.
“This is huge, I really feel for the folks in the Bush,” Adams said.
Rates per pound will increase to 12 cents per pound, a 40 percent jump over current rates for bypass mail from Anchorage. Rates for Fairbanks to Barrow will jump to 13 cents per pound, or 38 percent more than current rates.
Overall the rate increase in fourth-class parcel post ranges from 29.4 percent to 58.2 percent for packages that are not oversized.
Adams also noted that the rate for larger bundled packages heavier than 70 pounds will rise as the poundage increases, to the tune of about 58 percent.
“This will drive the cost of milk up at least a dollar more a gallon,” Adams said.
Christopher Low of Barrow said that a gallon of milk is selling for $7.95 a gallon at the AC store there.
“But you can get milk cheaper now because the store is getting it later because of the bypass mail slow down,” said Low, a management professor at Ilisagvik College. “Milk goes on sale for 99 cents a gallon because it gets in one day before it goes out of date, and AC is losing money on it.”
The U.S. Postal Service says that the cost increases do not cover its operating costs.
“We understand that these costs are not insignificant. However, when you realize that bypass mail only covers 15 percent of its costs, this rate increase isn't exorbitant,” said Steve Deaton, a network operations specialist with the U.S. Postal Service.
Bypass mail skips the post office, going directly from the shipper to the recipient in rural Alaska.
Adams says that the Alaska's congressional delegation has been contacted to try to intervene, or to find help for rural residents.
“We are exploring all the avenues on how to keep prices down. We are even looking at barging in more dry goods this spring, and warehousing them at our stores,” Adams said.
Rob Stapleton can be reached at
rob.stapleton@alaskajournal.com.
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