U.S. Postal Service Plans 'Peak' Surcharges for Domestic Parcels
August 14 2020 - 2:55PM
Dow Jones News
By Paul Ziobro
The U.S. Postal Service plans to add new fees onto commercial
packages starting in October as it looks to offset the increased
expenses from coronavirus and surge in volume expected from online
shoppers during the holidays.
Unlike United Parcel Service Inc. and FedEx Corp., the Postal
Service hasn't typically added surcharges for parcels it handles
during the peak holiday shopping season. The new fees would add to
costs for Amazon.com Inc., Target Inc. and other big holiday
shippers.
The surcharges on domestic commercial deliveries will run from
Oct. 18 through Dec. 27, and will apply to all of its competitive
package services. They range from 24 cents a parcel up to $1.50. It
won't apply to retail or international shipments, or regular mail
services.
The proposed fees, which still need approval from the Postal
Regulatory Commission, come as carriers have been overwhelmed with
shipping volume during the coronavirus pandemic. Now they are
trying to offset costs and manage capacity with new fees and higher
rates.
UPS last week disclosed its own surcharges for peak season
shipments that industry consultants said were higher than
anticipated. FedEx is also evaluating what fees it will charge
shippers ahead of the holidays, according to people familiar with
the matter.
Both UPS and rival FedEx Corp. have been charging peak
surcharges in recent months, a practice they typically enforce
during the year-end holidays. Meanwhile, the Postal Service has
come under recent fire from politicians and some customers for
delivery delays as its new leader starts to restructure its
operations.
Write to Paul Ziobro at Paul.Ziobro@wsj.com
(END) Dow Jones Newswires
August 14, 2020 14:40 ET (18:40 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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