U.S. Postal Service to Raise Rates for Package Delivery After Holidays -- Update
November 16 2020 - 12:41PM
Dow Jones News
(Adds details)
By Kimberly Chin
The U.S. Postal Service said Monday it plans to raise the prices
of its shipping services as it struggles financially with a steep
decline in mail despite an increase in package deliveries.
The agency will raise the prices of its Priority Mail service by
about 3.5% and by 1.2% for Priority Mail Express service. The price
changes will be reviewed by the Postal Regulatory Commission. The
changes are set to go into effect on Jan. 24.
The price of a small flat-rate box will increase to $8.45 from
$8.30, the price of a medium flat-rate box will be raised to $15.50
from $15.05 and the large flat-rate box will be $21.90, up from its
current price of $21.10, USPS said. It has also increased the
prices of its APO/FPO large flat-rate box, as well as of regular,
legal and padded flat-rate envelopes.
While its mailing services are based on the consumer price
index, the prices the agency charges to deliver packages for
customers such as Amazon.com Inc., which vary by product, are
usually adjusted according to market conditions, the agency
said.
"The [Postal Service] Governors believe these new rates will
keep the Postal Service competitive while providing the agency with
needed revenue," it said.
The pandemic has caused a surge in online shopping that is
boosting the Postal Service's package business. However, it has
been pressured in recent years by mounting costs and a decline in
its profitable first-class mail business segment. The pandemic has
deepened its financial struggles with first-class and marketing
mail volumes declining further.
Write to Kimberly Chin at kimberly.chin@wsj.com
(END) Dow Jones Newswires
November 16, 2020 12:26 ET (17:26 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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