“The planned peak-season pricing, which was approved by the governors of the Postal Service on Aug. 7, would affect prices on the following retail and commercial domestic competitive parcels: Priority Mail Express (PME), Priority Mail (PM), USPS Ground Advantage, and Parcel Select,” USPS said.
“No other products or services would be affected,” it added.
“This temporary price adjustment is to help cover extra handling costs to ensure a successful peak season.”
For retail customers in zones 1-4, Priority Mail and USPS Ground Advantage services will be higher by $0.40 to $3, depending on weight. For zones 5-9, these services will cost $0.50 to $7 more. USPS uses postal zones to assess distances between origin and delivery addresses.
Priority Mail Express charges for zones 1-4 will rise between $1.10 and $9.75. For zones 5-9, they are set to increase between $2 and $16.
Other retail and commercial rates are being changed as well.
“This seasonal adjustment will bring prices for the Postal Service’s retail and commercial customers in line with competitive practices,” the agency said.
The proposed rate hike has been sent to the Postal Regulatory Commission for review, according to the agency. If favorably reviewed, the rates will come into effect on Oct. 5 and remain in place until Jan. 18.
‘Path to Insolvency’
In a July 3 open letter to Postmaster General David Steiner—who began his tenure on July 15—the advocacy group Keep US Posted asked that the DFA plan, championed by the previous Postmaster General Louis DeJoy, be rescinded.The letter argued that many of the DFA policies have resulted in delayed mail delivery, reduced services, and a “dramatic increase” in costs for both individuals and businesses.
“Despite DeJoy’s resignation, the Postal Service appears to be adhering to his failed roadmap by planning yet another massive postage increase on July 13, the day before your tenure as postmaster general begins. On behalf of Keep US Posted and our members, we urge you to call on the Board of Governors to freeze mailing rates until after you assume the role of postmaster general,” said the letter.
“If such escalations continue, the price of a single stamp could be $1.19 by 2030. These increases are unnecessarily forcing out customers, and have put the Postal Service on a path to insolvency—destroying our nation’s ability to send and receive mail, and putting 8 million mailing industry employees out of a job,” it said.
In the first three quarters of this year, USPS has lost a combined $8.5 billion. To put this into context, the agency suffered a loss of $9.5 billion in the entire fiscal year 2024, which was a jump from the $6.5 billion loss in the fiscal year 2023.
USPS Chief Financial Officer Luke Grossmann said that even though the agency is facing financial challenges, the organization remains focused on “moving toward financial sustainability through operational efficiency, product strategies that will generate growth, and pricing adjustments.”