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US Postal Service plans parcel price hikes in January

Revenue growth is priority as organization bleeds billions of dollars

Eric Kulisch
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A U.S. Postal Service delivery van picks up packages at a UPS Store in Hazel Dell, Washington. (Photo: Eric Kulisch/FreightWaves)
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Key Takeaways:

  • The U.S. Postal Service has requested to raise parcel shipping rates for various services by 5.1% to 7.8%, effective January 18th.
  • This proposed rate increase is a measure to address the USPS's ongoing financial struggles, which include a recent $9 billion loss.
  • Specific services affected include Priority Mail, Priority Mail Express, USPS Ground Advantage, and Parcel Select, with the changes subject to review by the Postal Regulatory Commission.
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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.

(Photo: USPS)

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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Eric Kulisch

Eric is the Parcel and Air Cargo Editor at FreightWaves. An award-winning business journalist with extensive experience covering the logistics sector, Eric spent nearly two years as the Washington, D.C., correspondent for Automotive News, where he focused on regulatory and policy issues surrounding autonomous vehicles, mobility, fuel economy and safety. He has won two regional Gold Medals and a Silver Medal from the American Society of Business Publication Editors for government and trade coverage, and news analysis. He was voted best for feature writing and commentary in the Trade/Newsletter category by the D.C. Chapter of the Society of Professional Journalists. He was runner up for News Journalist and Supply Chain Journalist of the Year in the Seahorse Freight Association's 2024 journalism award competition. In December 2022, Eric was voted runner up for Air Cargo Journalist. He won the group's Environmental Journalist of the Year award in 2014 and was the 2013 Supply Chain Journalist of the Year. As associate editor at American Shipper Magazine for more than a decade, he wrote about trade, freight transportation and supply chains. He has appeared on Marketplace, ABC News and National Public Radio to talk about logistics issues in the news. Eric is based in Vancouver, Washington. He can be reached for comments and tips at ekulisch@freightwaves.com