U.S. Postal Service announces temporary commercial price increases

WASHINGTON – The United States Postal Service filed notice with the Postal Regulatory Commission (PRC) Friday of a temporary price change to take effect Oct. 18, 2020.

According to a press release by the USPS, the temporary price increases are due to increased expenses and heightened demand for the shipment of online shopping packages due to the coronavirus pandemic and expected holiday ecommerce. Because of this, the Postal Service is planning a time-limited price increase on all commercial domestic competitive package volume from Oct. 18 until Dec. 27, 2020. Retail prices and international products will be unaffected, according to USPS.

The planned price increase would go into effect at 12:00AM Central on Oct.18, 2020 and remain in place until 12:00AM Central Dec. 27, 2020.

The planned prices, 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.

This time-limited adjustment will also increase prices for commercial customers in line with competitive practices without impacting customers at the retail level. In doing this, the Postal Service 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.

“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 Oct. 18 and Dec. 27 at commercial rates.”

If favorably reviewed by the PRC, the planned price changes include:

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 – the increase will be zero instead of $0.40
20 lbs., zones 8/9 – the increase will be $0.06 instead of $0.40
Oversized – the increase will be zero instead of $0.40

The PRC will review the prices before they are scheduled to take effect on Oct.18, 2020.