USPS Announces Temporary Rate Hike for Most Parcel Categories

Holiday ‘Gift’: USPS to Raise Parcel Rates by 4%-12% Between Oct. 18th & Dec. 27th 

The US Postal Service filed notice on Aug. 14th with the Postal Regulatory Commission (PRC) of a temporary price change to take effect at 12:00 am Central Time on Oct. 18, 2020 and end at 12:00 am Central time on Dec. 27, 2020.

The USPS says the planned rate hikes are in response to increased expenses and heightened demand for online shopping package volume due to the Covid-19 pandemic and expected online holiday shopping. As a result, the time-limited price hike will impact all commercial domestic competitive package volume. While retail prices and international products will be unaffected, all commercial domestic competitive parcels, including Priority Mail Express, Priority Mail, First-Class Package Service, Parcel Select, and Parcel Return Service, will be impacted.

Below is a chart outlining all the temporary increases:

Also, some rate cells in Parcel Select Ground will be charged less than $0.40 so as not to exceed USPS Retail Ground retail prices:

• 19 lbs., zones 8/9: there will be no change instead of a $0.40 increase
• 20 lbs., zones 8/9: the increase will be $0.06 instead of $0.40
• Oversized: there will be no change instead of $0.40

No structural changes are planned as part of the rate hike.The USPS Board of Governors, who approved the increases on Aug. 6th, believe these temporary rates will keep the Postal Service competitive while providing the agency with much needed revenue, per a USPS statement. Click here for the full filing with the PRC.

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With so much going on in Washington and at the Postal Service in particular, be sure to attend the 13th Annual ACMA Forum (virtual) every Wednesday afternoon in September to learn the latest. Click here for free registration.