USPS Proposes Surcharge on Packages to Cover Rising Transportation Costs

USPS Proposes Surcharge on Packages to Cover Rising Transportation Costs

The U.S. Postal Service (USPS) has proposed adding a surcharge for fuel and other transportation costs to some of its products for shipping packages. The proposed price change would add 8% to the base postage prices on Priority Mail Express, Priority Mail, USPS Ground Advantage and Parcel Select, the organization said in a Wednesday (March 25) press release. It would last from April 26 until Jan. 17, 2027. The proposal is subject to review by the Postal Regulatory Commission (PRC), according to the release. The USPS said in the release that the price change would align its costs of transportation with the market and help it cover the actual costs of doing business, as required by Congress. It added that while this change would be time-limited, the USPS may adopt a permanent mechanism to make its prices reflect market conditions. “Transportation costs have been increasing, and our competitors have reacted with a number of surcharges,” the USPS said in the release. “We have steadfastly avoided surcharges and this charge is less than one-third of what our competitors charge for fuel alone, so even with this change, the Postal Service continues to offer great value in shipping with some of the lowest rates in the industrialized world.” Postmaster General and CEO David Steiner told a congressional committee on March 17 that inflation continues to impact the price of goods and services, including transportation. “Even as inflation moderates, it continues to contribute to higher compensation expenses, higher workers’ compensation costs and elevated…

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