On November 10, 2021, the U.S. Postal Service (USPS) has filed notice with the Postal Regulatory Commission (PRC) of price changes for Shipping Services to take effect from January 9, 2022. The filing also included pricing to support USPS Connect, affordable package delivery solutions for businesses that the Postal Service expects to launch in 2022, if favourably reviewed. The price change tables are also available on the Postal Service’s Postal Explorer website and are to be reviewed by the PCR before they take effect.
The proposed prices, approved by the Postal Service Governors, would raise Shipping Services product prices by approximately 3.1% for Priority Mail service, and 3.1 % for Priority Mail Express service. Shipping Services price adjustments vary by product. Although Mailing Services price increases are based on the consumer price index, Shipping Services prices are primarily adjusted according to market conditions. Under the proposal, the new prices will include an increase in the price of a Small Flat-Rate Box to $9.45. The Medium Flat-Rate Box would increase to $16.10; the Large Flat-Rate Box would decrease to $21.50 and the price of the APO/FPO Large Flat-Rate Box would decrease to $20.00. Regular Flat-Rate Envelopes, Legal Flat-Rate Envelopes, and Padded Flat-Rate Envelopes would increase to $8.95, $9.25, and $9.65 respectively.
According to USPS, pricing actions are part of the company’s 10 year-plan “Delivering for America,” aimed at achieving financial sustainability and service excellence. The Governors also believe these new rates will keep the Postal Service competitive while providing the agency with needed revenue.
It is hoped that rate changes will contribute to $40bn of investments in people, technology, and infrastructure over the next 10 years to modernise and improve the Postal Service’s operations and customer experience.
Source: USPS
