USPS Proposed Price Increase for Peak Holiday Season

The USPS has requested a temporary price adjustment for important package products from the Postal Regulatory Commission (PRC) for the peak Holiday season of 2021.

It's similar to the rate increase made in 2020 in anticipation of a surge in parcels and shipping during peak shipping season, which results in higher handling expenses.

The Governors of the Postal Service authorized peak-season pricing on August 5, which would effect prices for commercial and retail domestic competitive packets. 

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This includes the following services:

• Priority Mail Express (PME)
• Priority Mail (PM)
• First-Class Package Service (FCPS)
• Parcel Select
• USPS Retail Ground
• Parcel Return Service
  

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International products would be unaffected. The temporary rates would take effect at 12:00 a.m., Central Time, on October 3, 2021, and would last until 12:00 a.m., Central Time, on December 26, 2021, pending a favorable review by the PRC.

This seasonal adjustment will put USPS commercial and retail clients' pricing in line with industry standards. As part of this limited pricing effort, the USPS will make no structural modifications.

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U.S. Postal Service Planned Surcharges During Holiday Season

The planned price changes include:

• $0.75 increase for PM and PME Flat Rate Boxes and Envelopes.
• $0.25 increase for Zones 1-4, 0-10 lbs.
• $0.75 increase for Zones 5-9, 0-10 lbs.
• $1.50 increase for Zones 1-4, 11-20 lbs.
• $3.00 increase for Zones 5-9, 11-20lbs.
• $2.50 increase for Zones 1-4, 21-70 lbs.
• $5.00 increase for Zones 5-9, 21-70 lbs.

Parcel Select Destination Delivery Unit (DDU)

Current: Starts at $3.30

Planned Increase: No change

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Parcel Select Lightweight (DDU)

Current: Starts at $2.15

Planned Increase: No change

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FCPS Commercial

Current: Starts at $3.01

Planned Increase: 30 cents

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FCPS Retail

Current: Starts at $4.00

Planned Increase: 30 cents

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Parcel Select Lightweight (DSCF and DNDC): Starts at $2.55, up $1.00

Current: Starts at $2.55

Planned Increase: $1.00

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Parcel Select DSCF

Current: Starts at $4.84

Planned Increase: $1.00

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Parcel Select DNDC

Current: Starts at $6.85

Planned Increase: $1.00

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Parcel Return Service

Current: Starts at $3.21

Planned Increase: $1.00

Additional details of the changes can be found on the PRC website. It’s anticipated that the U.S. Postal Service will receive permission from the PRC to raise the rates during this year’s holiday season.