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USPS proposes temporary rate hike for peak season

Price adjustments anticipate heightened package and shipping demand, extra handling costs, officials say.

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Supply Chain Quarterly Staff
By Supply Chain Quarterly StaffAug 12, 2021
Supply Chain Quarterly Staff
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The United States Postal Service (USPS) is proposing a temporary price increase for key package products for the 2021 peak holiday shipping season. The temporary adjustments are similar to steps the agency took in 2020 that anticipated increased peak-season package and shipping demand, which the agency says typically results in extra handling costs. The USPS filed notice of the proposed change with the Postal Regulatory Commission (PRC) this week.

The planned peak-season pricing, which was approved by the Governors of the Postal Service on August 5, would affect prices on commercial and retail domestic competitive parcels: Priority Mail Express (PME), Priority Mail (PM), First-Class Package Service (FCPS), Parcel Select, USPS Retail Ground, and Parcel Return Service. International products would be unaffected.

Pending favorable review by the PRC, the temporary rates would go into effect at 12:00 a.m., Central Time, on Oct. 3, 2021, and remain in place until 12:00 a.m., Central Time, Dec. 26, 2021, according to USPS officials.

“This seasonal adjustment will bring prices for the Postal Service’s commercial and retail customers in line with competitive practices. No structural changes are planned as part of this limited pricing initiative,” the agency said in a statement. A full list of commercial and retail pricing is available on the agency's website.  



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