The cost of post is set to increase next month, according to the Bermuda Post Office (BPO).

A spokesman for the post office said that it would be introducing a rate change and “modernisation” of it postal products on July 1, with changes to local and international letter mail, parcels and International Data Express (IDE).

As a result of the transition, all BPO locations will be closed for transactions on June 30, but mail delivery will continue unaffected.

The spokesman did not detail the extent of any rate increases, but said: “The BPO has not issued a rate increase on the majority of its products since 2000, however, given the increased global costs for doing business, rates must be adjusted to reflect these trends.

“Local postage rates are used to calculate the terminal dues that Bermuda earns as revenue for delivering mail from postal services in other jurisdictions. Terminal dues are an important source of income for all postal administrations, including the BPO. Stamp sales and terminal dues represent 74 per cent of the BPO’s annual revenue which underscores the need for a rate increase.

“For every increase in the US, Canada and UK postal rates over the last 15 years, Bermuda’s revenue potential has consistently lagged behind and reduced, along with the reduction in mail volumes.” The spokesman said the 2015 Rate Change Project will adjust rates in respect to cost, while modernising the postal product categories, weight increments and transit route references for local and international mail.

“The BPO also intends to implement other revenue generating initiatives, products and services aimed at increasing overall revenues and decreasing operational costs via natural attrition and increased operational efficiency,” he said. “All of this is intended to drive the BPO towards its vision of being a more innovative, customer-focused and sustainable postal service.”