Aug 11, 2022 - Economy

USPS plans to raise prices for holiday season

USPS trucks

Photo: Paul Weaver/SOPA Images/LightRocket via Getty Images

A month after raising the price of postage stamps, the United States Postal Service wants to increase the cost of shipping packages over the holidays.

The big picture: USPS is proposing temporary rate adjustments to “help cover extra handling costs” through its busiest season. If approved, the new rates will take effect on Oct. 2 and run through Jan. 22, according to a news release.

  • The proposed price hikes, which USPS has instituted in past years, are part of the Postal Service’s 10-year plan "to achieve financial sustainability."

What's happening: The price increases vary by the weight of a package and the distance it's being shipped.

  • The increases for Priority Mail and Priority Mail Express range from 30 cents to $6.45, while flat rate boxes and envelopes will go up by 95 cents.
  • First-Class packages, Parcel Select Ground and USPS Retail Ground will go up 30 cents and $5.85 per package.
  • Commercial shipping prices will also increase but at slightly lower rates.

What they’re saying: “This seasonal adjustment will bring prices for the Postal Service’s commercial and retail customers in line with competitive practices,” USPS said in a statement.

  • "These temporary rates will keep USPS competitive while providing the agency with the revenue to cover extra costs in anticipation of peak-season volume," the statement said.

What’s next: The Postal Regulatory Commission must sign off on the changes, which were approved by the Governors of the Postal Service on Tuesday.

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