USPS Releases Proposed Peak Season Price Increases
The U.S. Postal Service is planning on raising parcel rates this holiday season, with some package rates increasing by as much as $6.
The agency hopes that the higher cost of sending packages from Oct. 2, 2022 through January 22, 2023 will help it remain competitive with other services like FedEx and UPS. The rate increase, which was approved on August 9 by the Governors of the Postal Service, will affect Priority Mail Express, Priority Mail, First-Class Package Service, Parcel Select and USPS Retail Ground. According to a release, international products will not be affected.
USPS does not receive taxpayer funding, so it relies on income generated by its products and services. According to the Washington Post, Postmaster General Louis DeJoy said last week that the agency was facing a $60 billion to $70 billion shortfall over the next 10 years without price hikes, even after Congress helped to relieve the USPS of $107 billion in past-due and future obligations.
"The temporary rate adjustment is similar to ones in past years that help us cover extra handling costs to ensure a successful peak season," USPS spokesperson David Coleman told the Washington Post. "The Postal Service has some of the lowest mail postage rates in the industrialized world and continues to offer great values in shipping."
Price increases vary based on size and distance. For example, a commercial Priority Mail flat rate box or envelope in Zone 1-4 up to 10 lbs. would see a price increase of only 25 cents. But a box weighing 26-70 lbs. sent in Zones 5-9 would have an increase of $6.50.
The full breakdown of price adjustments is available on the USPS website.