The U.S. Postal Service on Friday announced plans to implement surcharges for package delivery during the peak holiday season to cover extra handling costs, a decision likely to stir more complaints from groups who say rates have been rising too fast.
The surge pricing applies to Priority Mail Express, Priority Mail, Ground Advantage and Parcel Select products. Fees vary by distance shipped and weight, as well as for retail and commercial customers. The average increase for Priority Mail is 4.1%, with an average surcharge of 5.1% for Ground Advantage. A USPS Ground Advantage package going long distance, for example, could cost between 35 cents to $5.50 extra. Pending approval by the Postal Regulatory Commission, the temporary increases would begin at midnight on Oct. 5 and remain in place through Jan. 18.
The seasonal adjustment will bring prices for the Postal Service’s retail and commercial customers in line with private sector competitors, the agency said. It also implemented peak season surcharges last year. FedEx and UPS routinely apply demand surcharges for the busiest shipping season.
The board of governors approved the peak-season pricing during a meeting on Thursday where officials presented third-quarter results.
The postal operator declared a $3.1 billion loss for the fiscal year third quarter ended June 30, a result of rising costs, lower volumes and non-cash accounting adjustments. The loss was $1.6 billion when excluding costs mandated by law and not under the Postal Service’s direct control.
Postal Service management has focused this decade on the need to raise revenue through price adjustments as part of its long-term transformation plan for improved service and financial stability. The postal operator raised letter prices on July 13. Business groups such as Keep US Posted have complained the frequency and size of postage increases has contributed to volume declines.
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