Postal Service Plans Increases For Holiday Season
The U.S. Postal Service has filed notice with the Postal Regulatory Commission regarding a temporary price adjustment for key package products for the 2021 peak holiday season. This temporary rate adjustment is similar to the one in 2020 that anticipated heightened peak-season package and shipping demand, which typically results in extra handling costs.
The planned peak-season pricing, which was approved by the Governors of the Postal Service on Aug. 5, would affect prices on commercial and retail domestic competitive parcels – Priority Mail Express, Priority Mail, First-Class Package Service, 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 on Oct. 3, and remain in place until Dec. 26.
These temporary rates will keep the Postal Service competitive while providing the agency with the revenue to cover extra costs in anticipation of peak-season volume surges similar to levels experienced in 2020. The forecasted additional revenue from the time-limited increase will depend on the volume of packages shipped between Oct. 3 and Dec. 26 — the period the Postal Service historically considers its holiday peak season.
A full list of commercial and retail pricing can be found on the Postal Service’s Postal Explorer website https://pe.usps.com/text/ dmm300/Notice123.htm The PRC will review the prices before they are scheduled to take effect on Oct. 3. The complete Postal Service price filings with prices for all products can be found on the PRC website under the Daily Listings section at prc. gov/dockets/daily. The price change tables are also available on the Postal Service’s Postal Explorer website at pe.usps.com/PriceChange/ Index.
The Postal Service’s “Delivering for America” 10-year plan aims to reverse a projected $160 billion in losses over the next 10 years. The plan’s growth and efficiency initiatives will spur cash flow and savings to make $40 billion in capital investments over the next 10 years – including approximately $20 billion towards the Postal Service’s mail and package processing network, facility upgrades and procurement of new processing equipment.
The Postal Service generally receives no tax dollars for operating expenses and relies on the sale of postage, products and services to fund its operations.
