Supply Chain Dive: USPS Announces New Shipping Rates for 2023

Nov 18, 2022

(Image Source: Unsplash)

The United States Postal Service (USPS) is planning for a hike in service rates starting next year, as part of its efforts to cope with the high inflation and lower package volumes. The Postal Regulatory Commission will review the proposed rate adjustments which will take effect on 22nd January 2023. 

The change in prices varies from service to service, with the First-Class Package Service, known as FCPS taking the highest leap of 7.8%. This service is dedicated to small parcels that are less than 1 pound. However, the maximum weight supported will be extended in 2023.

Join thousands of e-commerce logistics leaders
Sign up for free!

As for USPS Retail Ground, the prices are expected to increase by about 6.4% on average and the same goes for Priority Mail Express and Priority Mail services by about 6.6% and 5.5% respectively. Meanwhile, the average hike for Parcel Select – an economical ground delivery service targeting medium and large-sized shippers – is around 5.1%. Last but not least, Connect Local service prices will stay the same whereas the Parcel Select Ground option will be eliminated next year.

“Unfortunately, with all that has been accomplished financially, our 2023 budget will not show the breakeven results we were striving for,” said Postmaster General Louis DeJoy. ”… Having said that, the Postal Service continues to move forward with its various cost and revenue initiatives to improve.”

The Postal Service hopes that the aforementioned raises can offset the high inflation rate which is already accounted for in their budget for 2023. Apart from USPS, other carriers like FedEx and UPS are also planning to increase their rates by 6.9% on average.

Source: USPS plans 2023 rate hikes for some shipping services

For more exclusive reports, insights, and interviews on the latest updates in e-commerce and logistics, follow us on LinkedIn or join our community as a member.

Share this with your network

Also worth your time

Track your parcel here