USPS Announces Temporary Price Increase For Commercial Customers
The United States Postal Service (USPS) will enact a temporary price change to take effect on October 18. First filed with the Postal Regulatory Commission (PRC) in August, the planned temporary price adjustments are in response to increased expenses and heightened demand for online shopping package volume due to the coronavirus pandemic and expected holiday ecommerce. As a result of these changing market conditions, the Postal Service is planning a time-limited price increase on all commercial domestic competitive package volume from October 18 through December 27. Retail prices and international products will be unaffected.
The planned increase, approved by the Governors of the Postal Service on August 6, would raise prices on its commercial domestic competitive parcels—Priority Mail Express, Priority Mail, First-Class Package Service, Parcel Select and Parcel Return Service. Increases range from 24 cents to $1.50. The Governors believe these temporary rates will keep the postal service competitive while providing the agency with much-needed revenue. The forecasted additional revenue from the time-limited increase will depend on the volume of packages shipped between October 18 and December 27 at commercial rates.
USPS notes that the time-limited adjustment will increase prices for commercial customers in line with competitive practices without impacting customers at the retail level, and in doing this, it is protecting the retail consumer during a vulnerable economic period while increasing prices on commercial volume during heightened volume levels. No structural changes are planned as part of this limited-time pricing initiative.
For more information on the USPS price changes, click here.