As covered in our news story on the 17th August, the United States Postal Service (USPS) filed notice with the Postal Regulatory Commission (PRC) for a temporary price increase. Unfortunately, on 4th September 2020, the PRC approved this temporary change, taking effect on 18th October 2020 until 27th December 2020.
The planned temporary price adjustments are in response to increased expenses and heightened demand for online shopping package volume due to the coronavirus pandemic and expected holiday eCommerce. As a result of these changing conditions, the Postal Service is planning a timed limited price increase on all commercial domestic competitive package volume from 18th October until 27th December 2020. Retail prices and international products will be unaffected.
The planned price increase would go into effect at 12:00 am Central on 18th October 2020 and will remain in place until 12:00 am Central 27th December 2020.
The planned prices, approved by the Governors of the Postal Service on 6th August, would raise prices on its commercial domestic competitive parcels – Priority Mail Express, Priority Mail, First-Class Package Service, Parcel Select, and Parcel Return Service.
The time-limited adjustment will increase prices for our commercial customers in line with competitive practices without impacting customers at the retail level. In doing this, the Postal Service is protecting the retail consumer during the vulnerable economic period while increasing prices on commercial volume during heightened volume levels.
No structural changes are planned as part of this limited-time pricing initiative, allowing customers the greatest ease in implementing the new prices with minimal complexity.
The Governors believe these temporary rates will keep the Postal Service competitive while providing the agency with much needed revenue. The forecasted additional revenue from the time-limited increase will depend on the volume of packages shipped between 18th October and 27th December 2020 at commercial rates.
If you have any questions regarding the temporary increase, please don’t hesitate to give your Account Manager a call.