Latest news with #ParcelSelect
Epoch Times
4 days ago
- Business
- Epoch Times
USPS to Temporarily Raise Mailing Rates This Holiday Season
The United States Postal Service (USPS) is planning to temporarily raise the prices of some of its mail services for the upcoming holiday season, the agency said in an Aug. 8 statement. 'The planned peak-season pricing, which was approved by the governors of the Postal Service on Aug. 7, would affect prices on the following retail and commercial domestic competitive parcels: Priority Mail Express (PME), Priority Mail (PM), USPS Ground Advantage, and Parcel Select,' USPS said.
Yahoo
15-07-2025
- Business
- Yahoo
USPS hikes parcel rates and stamps by 7%
The price of sending packages, letters and bulk mail through the U.S. Postal Service went up on Sunday, to the dismay of mass mailers and e-commerce sellers. The product and service price increases were telegraphed earlier this year and received approval from the Postal Regulatory Commission. The price for domestic shipping service increased about 6.3% for Priority Mail service, 7.1% for USPS Ground Advantage and 7.6% for Parcel Select. Ground Advantage, introduced two years ago, is an economical service for shipping packages up to 70 pounds in two to five business days. It replaced three other parcel delivery products. The minimum charge for small packages now exceeds $4. Meanwhile, the price of a first-class mail stamp increased to 78 cents from 73 cents. Letter and postcard rates on average increased 7.4%. Single-piece letters weighing more than an ounce increased a penny to 29 cents for each additional ounce. The new prices lists are available here. Price increases for mailing services are based on the consumer price index, while shipping services are adjusted according to market conditions. The board of governors said the new rates will keep the Postal Service competitive while providing the agency with needed revenue. The higher shipping rates will impact small-and-medium companies that sell goods online and some could go out of business, said Lucas Zheng, founder of San Jose, California-based startup Samezip. 'Although many companies also provide services cheaper than USPS, only USPS can cover the entire United States and can provide free delivery at home, which is something that no other company can do. In addition, it is still very difficult for small and medium-sized shippers to do pre-sorting because they don't have many packages. For large customers, the price increase of USPS may still be a good thing, because they can do pre-sorting, use multiple package channels, and finally throw the packages that other companies cannot cover to USPS,' he wrote on LinkedIn. Bulk mailers say the rate increases are unwelcome. Keep US Posted, which advocates for greeting card publishers, magazines, catalogs, and printing and paper interests, this month urged incoming Postmaster General David Steiner to call on the board to freeze the mailing rates until after he takes office. 'We believe it is counterproductive for another postage surge to take place immediately before you undertake leadership of the Postal Service, as it will deprive you of the ability to thoroughly assess, and potentially rectify, one of the most destructive policies in DeJoy's Delivering for America plan,' Executive Director Kevin Yoder said in a letter to Steiner. Delivering for America is a 10-year turnaround strategy aimed at improving transportation efficiency and returning the Postal Service to financial viability, including by raising revenue. The Postal Service this month reduced service to remote post offices as part of an effort to streamline inefficient routes and consolidate distribution facilities. Louis DeJoy left as postmaster general in March under pressure from White House, which encroached on the agency's independence. The mail system lost $16 billion in the past two years, partly due to congressional mandates on how to account for worker benefits. The Alliance of Nonprofit Mailers says record rate hikes the past three years have worsened the Postal Services finances. The Association for Postal Commerce, which includes the Alliance of Nonprofit Mailers, last month requested that the Postal Service delay implementation of the rate hikes to Sept. 28 so businesses would have enough time to adjust their own customer pricing. In a June 6 letter to the board of governors, the trade group complained that documentation needed for developers to update commercial mailing software should have been available no later than mid-April, but was not provided until May 1 and is not expected to be finalized until mid-June. 'Software companies, corporate mail centers, and mail service and logistics providers will therefore be forced to take shortcuts to meet an unrealistic deadline as well as seek exceptions for their clients who will otherwise fail to comply with preparation and entry requirements. Either way, July 13 implementation of the new rates is likely to result in misdirected mail, operational bottlenecks, postage payment adjustments, and severe service disruptions,' wrote Michael Plunkett, president of the Association for Postal Commerce. The APC said it didn't receive a response from the board. Click here for more FreightWaves/American Shipper stories by Eric Kulisch. Write to Eric Kulisch at ekulisch@ US parcel market to grow 36% by 2039, Pitney Bowes says Postal Service board names FedEx official as CEO before vetting complete Accounting change, higher labor costs drive $3.3B Postal Service loss The post USPS hikes parcel rates and stamps by 7% appeared first on FreightWaves. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
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'?
