Updated May 11th, 2024 at 08:51 IST

US postal service proposes 25% price hike for high-volume shipping

The USPS is not suggesting any price adjustments for its USPS Ground Advantage package shipping service.

Reported by: Business Desk
US Postal Service | Image:Unsplash
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US Postal Service: The US Postal Service (USPS) announced on Friday its proposal for an average 25 per cent increase in prices for high-volume shippers using its Parcel Select service for regional delivery. This adjustment, slated to come into effect on July 14 pending approval from the Postal Regulatory Commission, aims to discontinue incentives for consolidating mail volume from multiple senders directly to the destination delivery unit.

The USPS is not suggesting any price adjustments for its USPS Ground Advantage package shipping service.

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Last month, USPS disclosed its intention to raise the price of first-class mail stamps to 73 cents from 68 cents, effective July 14, subject to approval by the postal commission. This move would result in a 7.8 per cent increase in prices for mailing services products. Stamp prices have surged by 36 per cent since early 2019.

The Postal Service reported a $6.5 billion net loss for the 12 months ending September 30, attributed to a decline in first-class mail volume to its lowest level since 1968. Additionally, USPS posted a second-quarter net loss of $1.5 billion on Thursday.

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A bipartisan group of 26 US senators urged USPS on Wednesday to halt further consolidation of its processing and delivery network, citing potential delays in mail deliveries.

USPS is in the midst of a 10-year restructuring plan aimed at curbing forecasted financial losses amounting to $160 billion. Postmaster Louis DeJoy underlined the necessity of this restructuring, citing the need to rectify past neglect and ensure the Postal Service's viability.

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Stamp prices have been incrementally raised twice yearly, with USPS projecting an additional $44 billion in revenue by 2031 through its new pricing policy.

In April 2022, President Joe Biden signed legislation providing approximately $50 billion in financial relief to USPS over the span of a decade.

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(With Reuters inputs)

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Published May 11th, 2024 at 08:51 IST