US Postal Service plans parcel price hikes in January

The U.S. Postal Service on Friday requested permission from the Postal Regulatory Commission to raise parcel shipping rates next year as it looks for more revenue amid continuing financial struggles.

The quasi-public company reported a $9 billion loss and a $2.8 billion adjusted operating loss for the fiscal year ended Sept. 30.

The Postal Service said it intends to raise prices 6.6% for Priority Mail service, 5.1% for Priority Mail Express service, 7.8% for USPS Ground Advantage and 6% for Parcel Select. Price adjustments, which the agency says are made based on market conditions, would take effect on Jan. 18. The agency adjusts prices based on market conditions.

Priority Express provides one-to-three day service, with a moneyback guarantee, compared to two-to-three day service for Priority Mail.

Ground Advantage is a two-year-old service that offers two-to-five day service standards for packages up to 70 pounds. The product is aimed at shippers willing to sacrifice speed for price. It is also intended for users of the Postal Service’s Priority Mail service who need two- to three-day transit times but don’t want to pay Priority Mail’s pound-based prices.

Parcel Select is designed for high-volume shippers who sort their own packages and induct them for regional delivery through the USPS network. The delivery standard is two-to-eight days.

The Postal Regulatory Commission will review the changes before they are scheduled to take effect.

Management has pointed to the package business as the primary generator of new revenue that can help whittle down the annual deficit. The agency saw parcel volumes triple to 6.7 billion pieces over a 10-year period ending in 2023, but shipment numbers fell 5.7% in 2025, according to agency figures.

The Postal Service in September said it wouldn’t raise stamp prices in January, breaking a string of twice-yearly price hikes. 

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