WASHINGTON – The U.S. Postal Service announced a temporary price increase for holiday shipping.
The rate hike, similar to ones implemented in past years, is intended to help cover extra handling costs, according to the USPS.
The peak-season pricing was approved by the Governors of the Postal Service on Aug. 9.
The USPS said prices will go up for the following commercial and retail domestic parcels: Priority Mail Express, Priority Mail, First-Class Package Service, Parcel Select and USPS Retail Ground.
The price hikes will take effect from Oct. 2, 2022, until Jan. 22, 2023, pending a favorable review by the Postal Regulatory Commission.
International USPS products will not be affected by the temporary holiday price hikes.
The holiday price increases vary according to weight of the packages sent and differ depending on whether the packages are mailed via commercial or retail postage.
The First Class retail package rate for parcels up to 10 pounds will go up by 30 cents for delivery within 600 miles. For retail packages 26-70 pounds, the increase will be $5.85 for deliveries beyond 600 miles.
First Class commercial package rates for parcels up to 10 pounds to be delivered within 600 miles will increase by 25 cents. The rate for commercial packages weighing 26-70 pounds and delivered beyond 600 miles will increase by $5.50.
“These temporary rates will keep USPS competitive while providing the agency with the revenue to cover extra costs in anticipation of peak-season volume,” Postmaster General Louis DeJoy said.
Postal rates went up just last month. For example, the cost of a first-class Forever stamp increased by 2 cents to 60 cents, postcards increased from 40 cents to 44 cents, and certified mail increased by 25 cents to $4.
Inflation is going to add more than $1 billion to the U.S. Postal Service budget, necessitating a request for another increase next January in the cost of postage stamps, DeJoy said Aug. 9.
Third quarter results for the first time reflected a sweeping congressional overhaul President Joe Biden signed into law in April – leading to a noncash benefit of nearly $59.6 billion. But DeJoy, addressing the Board of Governors, cautioned against reading too much into the one-time benefit, without which the Postal Service would have suffered an adjusted loss of $459 million.
“The fact of the matter is that we have a long road and a lot of hard work ahead in our 10-year transformation to ensure the long-term financial sustainability of the Postal Service,” DeJoy said.
DeJoy previously warned that a rate increase will be necessary, especially in the face of inflation.