Industry News Postal

The Postal Regulatory Commission has approved the temporary price increase sought by the Postal Service that will apply to competitive products for the ten-week period of October 18th through December 27th, 2020. The surcharge is applicable to competitive commercial products only and does not include a surcharge for retail packages.

The USPS expects to experience a substantial increase in package volume during the fall and holiday shipping period and believe the surcharge is necessary to cover additional costs.

While other competitive shipping vendors such as UPS and FedEx institute seasonal surcharges on a regular basis this is the first time the USPS has placed one on their packages.

Historically the USPS increases the rates for Market dominant mail and Competitive shipping products in January of each new year. A 2021 rate increase or implementation date has not yet been announced. This temporary surcharge does not prevent the USPS from seeking a permanent increase for package product rates in January.

The PRC order can be accessed here

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