U.S. Postal Service delivery vans parked

The U.S. Postal Service Wants to Raise Prices For The 2021 Holiday Season

The U.S. Postal Service filed a notice with the Postal Regulatory Commission (PRC) asking for a temporary price adjustment for key package products for the 2021 peak holiday season.

It is similar to the rate adjustment that was implemented in 2020 due to the expected influx of packages and shipping during the peak shipping season, which results in extra handling costs.

The planned peak-season pricing, which was approved by the Governors of the Postal Service on August 5, would affect prices on commercial and retail domestic competitive parcels. 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

International products would be unaffected. Pending favorable review by the PRC, the temporary rates would go into effect at 12:00 a.m., Central Time, on October 3, 2021, and remain in place until 12:00 a.m., Central Time, December 26, 2021.

This seasonal adjustment will bring prices for USPS commercial and retail customers in line with competitive practices. The U.S. Postal Service plans no structural changes as part of this limited pricing initiative.

U.S. Postal Service Planned Surcharges During Holiday Season

Here is a rundown of the proposed planned temporary price increases.

Priority Mail, Priority Mail Express, Parcel Select Ground and USPS Retail Ground:

  • $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.

Other USPS services will see the following adjustments:

  • Parcel Select Destination Delivery Unit (DDU): Starts at $3.30, No change
  • Parcel Select Lightweight (DDU): Starts at $2.15, No change
  • FCPS Commercial: Starts at $3.01, up 30 cents
  • FCPS Retail: Starts at $4.00, up 30 cents
  • Parcel Select Lightweight (DSCF and DNDC): Starts at $2.55, up $1.00
  • Parcel Select DSCF: Starts at $4.84, up $1.00
  • Parcel Select DNDC: Starts at $6.85, up $1.00
  • Parcel Return Service: Starts at $3.21, up $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.

This temporary price change request is on top of the recent news the U.S. Postal Service wants to implement fundamental structural changes to First Class Mail and the upcoming second rate hike in 2021.

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Editorial Note: This post is from a Company Press Release and may have been modified for clarity.

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