The US Postal Service is seeking approval to impose a temporary surcharge on parcel shipments for the first time in its history, as transport costs climb sharply in the wake of the Iran conflict.
The agency has asked the Postal Regulatory Commission to approve an 8% price adjustment on parcel products, a move designed to help absorb rapidly rising transportation expenses. Fuel is the biggest immediate driver, with gasoline and diesel prices increasing by more than 30% since the US and Israel launched military action in Iran nearly a month ago.
If approved, the surcharge would apply on top of standard transportation rates for Priority Mail Express, Priority Mail, USPS Ground Advantage and Parcel Select. The Governors of the Postal Service approved the plan on Tuesday, and the temporary increase is scheduled to take effect on 26 April and remain in place until 17 January 2027.
While the Postal Service noted that fuel is the most visible cost pressure, it said the surcharge is also intended to offset other transport-related expenses, including trucking rates, vehicle maintenance and pass-through charges such as insurance from contracted motor carriers.
The agency added that the temporary fee would also support a transition toward a more permanent surcharge mechanism for competitive products, part of a wider effort to sustain its universal service obligation on a more financially stable footing. In the last fiscal year, USPS recorded a net loss of $9bn, including an operating loss of around $2.7bn.
The new fee would still sit well below the fuel surcharge levels charged by private parcel carriers. The Postal Service said competitors commonly apply much higher fuel-related adjustments, while UPS and FedEx have also added temporary fees on shipments moving between the US and the Middle East. USPS stressed that even with the planned change, it continues to offer some of the lowest shipping rates in the industrialised world.
The Postal Regulatory Commission will now review the proposal before the scheduled implementation date.
