The US Postal Service is set to introduce a temporary 8% rate increase on several domestic parcel services as it responds to rising transportation costs and broader financial strain.
The increase will apply to retail and domestic products including Priority Mail Express, Priority Mail, USPS Ground Advantage and Parcel Select. Other products, including First-Class stamps, will not be affected.
According to the notice, the change is due to take effect on 26 April and remain in place until 17 January 2027. USPS said the temporary measure is intended to serve as a bridge towards a more permanent pricing mechanism that better reflects changing market conditions. The Postal Regulatory Commission will review the proposal before implementation.
The move comes as transport costs continue to rise, driven in part by higher fuel prices linked to the military conflict between the US and Iran. The disruption of a major oil corridor has already affected multiple transport modes and has pushed diesel prices higher. On Monday, the average cost of diesel reached $5.38 per gallon, up 30 cents from the previous week.
Historically, USPS has used time-limited price increases mainly during peak shipping periods, whereas private carriers have been quicker to apply fuel and transport-related surcharges as market conditions change. Earlier this month, both UPS and FedEx introduced temporary charges on shipments between the US and the Middle East and also raised fuel surcharge levels.
In a filing to the Postal Regulatory Commission, USPS said its competitors have long had the flexibility to respond to changing conditions through surcharges and fee adjustments, while the Postal Service has not enjoyed the same ability despite being materially affected by the same pressures.
The price increase also comes against a backdrop of deeper financial challenges. USPS has been under pressure for years because of universal service requirements, declining mail volumes, regulatory pricing restrictions and pension obligations. The agency has been overhauling its network in an effort to improve performance.
Last week, Postmaster General and chief executive David Steiner told a House subcommittee that the agency could run out of cash within about a year. He warned that unless Congress raises the current $15bn borrowing limit, USPS may have to cut services and introduce further rate increases.
The latest change follows shipping rate hikes already implemented in January on several services, including Ground Advantage, as part of the agency’s effort to stabilise its finances.
