Latest news with #ParcelSelect
Epoch Times
13-05-2025
- Business
- Epoch Times
US Postal Service to Raise Shipping Charges by Over 6 Percent
The U.S. Postal Service (USPS) intends to increase shipping prices effective July 13 and has filed a notice with the Postal Regulatory Commission on the matter, the agency said in a 'The changes would raise domestic shipping services prices approximately 6.3 percent for Priority Mail service, 7.1 percent for USPS Ground Advantage, and 7.6 percent for Parcel Select. Prices are not changing for Priority Mail Express service,' the company said on May 9. Priority Mail is one of the fastest delivery services offered by USPS, with packages arriving at destinations in two to three business days. Ground Advantage delivers in around two to five days, while Parcel Select is a solution for high-volume shippers, with packages taking two to eight days for delivery. The rate increases were approved by the Board of Governors last week. 'The USPS governors believe these new rates will keep the Postal Service competitive while providing the agency with needed revenue.' The rate changes will support USPS's $40 billion investments and continue the improvement and modernization of its operations, the postal service said. Pricing changes have been implemented as part of the Delivering for America initiative, a 10-year plan introduced in 2021 that aims to Related Stories 4/10/2025 5/9/2025 USPS revealed its Q2 financial 'As we mark 250 years of service to the nation, our organization continues to face economic headwinds. We are working diligently to control costs, increase revenues, and transform and modernize our infrastructure,' said acting Postmaster General Douglas Tulino. 'At the same time, we are seeing strong market acceptance of shipping products like USPS Ground Advantage and adopting an increasingly competitive posture across our product portfolio.' In fiscal year 2024, USPS reported a net loss of $9.5 billion, up by $3 billion compared to the previous fiscal year. USPS has initiated several cost-cutting measures to improve its financial position. On March 13, former Postmaster General Louis DeJoy said USPS had Leadership Change USPS is currently changing leadership. Following DeJoy's resignation in March, the USPS Board of Governors elected David Steiner as Postmaster General and CEO, the agency said in a May 9 Steiner serves on the board of USPS competitor FedEx and other companies. He is expected to leave the FedEx board before joining USPS, the service said. 'We anticipate Steiner will formally join the organization in July, assuming his successful completion of the ethics and security clearance vetting processes.' The National Association of Letter Carriers, a union representing 295,000 active and retired letter carriers, had Appointing Steiner to lead USPS is a 'clear conflict of interest,' it said. 'His selection isn't just a conflict of interest—it's an aggressive step toward handing America's mail system over to corporate interests.' 'Private shippers have been waiting to get USPS out of parcel delivery for years. Steiner's selection is an open invitation to do just that.' Nonprofit advocacy Keep US Posted, dedicated to the long-term health of USPS, supported the appointment of Steiner in a May 7 Kevin Yoder, Keep US Posted executive director, said the group aims to work with Steiner to make sure the postal service prioritizes its long-term sustainability and ensures affordable access to mail for Americans. 'This is a pivotal moment for the Postal Service, as self-inflicted service failures, ever escalating costs, and volume-killing rate increases by Louis DeJoy under the Delivering for America plan have pushed USPS to the brink of failure,' he said. 'We are optimistic that Steiner's leadership will strengthen the institution's mission of delivering reliable, affordable mail services to every American, every day.'
Newsweek
11-05-2025
- Business
- Newsweek
USPS Update on New Shipping Services Prices for 2025
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. The United States Postal Service (USPS) has announced that it plans to raise prices on its shipping services this summer. Why It Matters The Postal Service, the largest mail carrier in the country, is rolling out the rate increase as it strives to make its package delivery business more profitable. The independent federal agency has been facing financial struggles in recent years, having implemented a 10-year plan to stabilize in 2021. It reported a $9.5-billion loss in the fiscal year ending in September 2024, compared to a net loss of $6.5-billion in the fiscal year 2023. It reported a $3.3-billion net loss in the first quarter of 2025—nearly double during the same period last year. The USPS does not receive tax dollars for operating expenses and relies on the sale of postage, products and services in order to fund its operations. What To Know The USPS has announced it plans to increase prices for its Ground Advantage, Priority Mail and Parcel Select products beginning on July 13, according to a filing from the agency made on Friday. Priority Mail service will increase in price by 6.3 percent; 7.1 percent for USPS Ground Advantage; and 7.6 percent for Parcel Select. "Although mailing services price increases are based on the Consumer Price Index, shipping services prices are primarily adjusted according to market conditions," the postal service said in the announcement. "The USPS governors believe these new rates will keep the Postal Service competitive while providing the agency with needed revenue." A USPS mail truck leaves for a delivery in Fullerton, California, on July 18, 2020. A USPS mail truck leaves for a delivery in Fullerton, California, on July 18, 2020. GETTY There will be no price increases for Priority Mail Express, Domestic Extra Services, International Ancillary Services, or International Products. It follows on from the last price hike for shipping services, which took effect in January 2025. A separate request to the Postal Regulatory Commission made in April would also see the price of stamps rise this year. What People Are Saying The USPS said in a press release issued on May 9: "As part of the 10-year comprehensive strategic Delivering for America plan, these proposed changes will support the Postal Service in creating a revitalized organization capable of achieving its public service mission—providing a nationwide, integrated network for the delivery of mail and packages at least six days a week—in a cost-effective and financially sustainable manner over the long term, just as the U.S. Congress has intended." What Happens Next The price increases were approved by the USPS Board of Governors this week, and will be implemented on July 13 pending approval from the Postal Regulatory Commission.
Yahoo
28-01-2025
- Business
- Yahoo
USPS' DeJoy: Consolidator changes will boost competitiveness
This story was originally published on Supply Chain Dive. To receive daily news and insights, subscribe to our free daily Supply Chain Dive newsletter. Postmaster General Louis DeJoy described the Postal Service's large-scale changes impacting package consolidators as necessary for his wide-ranging "Delivering for America" plan in an interview with Supply Chain Dive on Sunday. "I'm not trying to take over the package business industry. I'm trying to just fill my trucks and fill my carrier bags, right?" DeJoy said. "And once I do that, and I've leaned out the whole place, we have potentially a chance of covering our costs and saving the Postal Service." Consolidators like DHL eCommerce and OSM Worldwide use the Postal Service for final-mile delivery of its customers' packages. But two changes the Postal Service rolled out last year incentivized these companies to overhaul their longstanding business models in varying ways. For one, the Postal Service eliminated ounce-based rates for packages shipped via Parcel Select, spurring partners that used it to pursue heavier shipments. The agency also nixed contracted rate discounts for consolidator volume going to its delivery units, or facilities closest to the end recipient. This has led more packages to be dropped off further upstream in the Postal Service's network. "Going into delivery units was not something that I was happy with on a competitive standpoint. I thought it was a foolish strategy," DeJoy said. Previous consolidator arrangements didn't align with the agency's aim to streamline its middle-mile operations and maximize the amount of volume its ground transportation network handles. Instead, consolidators were often handing packages off one step before delivery. "We have to get paid for that work, but they were paying somebody else for that work, right?" DeJoy said. "So it's our system now that's bringing the product down. And you know what? I'm going there anyway with my trucks." The Postal Service's strategic shift under DeJoy has sparked major changes throughout the parcel delivery industry over the past year. Consolidators are looking to deliver heavier packages due to ounce-based pricing changes. Alternative delivery providers are moving to compete directly with the Postal Service on lightweight shipping services. And UPS is now delivering all of its SurePost packages in-house rather than splitting up the work with the Postal Service. Amid the overhaul, DeJoy said he's open to reach more deals with services that previously relied on the agency. However, he noted there is limited room at the Postal Service for additional business from consolidators in the near term. The Postal Service is also amenable to discounts for delivery unit drop off, but only through direct contracts and offered more tightly than in the past, according to DeJoy. Some customers still drop off volume at delivery units, but the agency wants to ensure those facilities aren't "overwhelmed" as some locations were in previous instances, he added. "I gave everybody opportunities to negotiate with us for what I felt was the reasonable price adjustment that we needed to make," DeJoy said. But the Postmaster General still views consolidators as competitors in the agency's efforts to snag a larger share of the parcel delivery market. Key in that plan is to secure more direct contracts with shippers, including through its Ground Advantage service that offers its own ounce-based rates. The agency is also gearing up to launch its Next Day Priority shipping service later this year. DeJoy said the offering will "roll it out regionally as the deals come." "We were not dealing with our customers when I got here," DeJoy said. "We had resellers, consolidators, our sales force was dormant. I got a sales force that's on fire now." Industry stakeholders have voiced concern about how the changes could challenge on-time delivery reliability as more volume is entered into the agency's transforming network earlier. Although DeJoy acknowledged the Postal Service's overhaul has had its share of challenges, he added that shipping partners who align with the agency will see "great service" going forward. "We're going to perform, we're going to deliver on time," DeJoy said. Recommended Reading Can Postal Service consolidators capitalize on market 'chaos'?
