USPS Peak Season Price Hikes

If you head to the post office this fall, don’t be surprised when you’re charged more than usual. 

The United States Postal Service (USPS) has announced a notice with the Postal Regulatory Commission stating a temporary price adjustment for key package products in this year’s peak holiday season. Planned price increases might range from $0.30 all the way up to $5, depending on the specific product you’re shipping and the location you’re shipping to. 

These temporary price hikes apply to specific package shipments, including priority mail and other package services, in anticipation of a heightened peak-season packaging and shipping demands. 

This anticipation is based on the significant operational problems that USPS faced in the holiday period of 2020 when package and delivery demands unexpectedly increased significantly. These peaks tend to lead to additional handling costs. After a review by the Postal Regulatory Commission, price hikes are set to come into effect between early October and late December (3rd October to 26th December). 


The USPS is constantly working towards more sustainable and efficient postage services, working towards appropriate pricing initiatives. The USPS has some of the lowest mail postage rates in the industry yet provides a similar quality of delivery as their competitors. The temporary price hikes will ensure the USPS remains a significant competitor during the holiday season when there is a predicted surge in demands based on figures seen in late 2020. Of course, the forecasted revenue they are to gain depends on a variety of factors, predominantly the volume of packages delivered between the above period. 


Within the next ten years, the Postal Service aims to reverse the $160 billion losses they have experienced. These price hikes and other cash growth initiatives are set to achieve this goal. There may be savings of around $40 billion in capital investments, with around $20 billion towards the mail and packing processing network of the Postal Service, and additional upgrades in the necessary equipment to enhance workflow efficiency and productivity.

Specific prices can be seen on the Postal Regulatory Commission website under their Daily Listings page. The price hikes enable the USPS to reach their projected goals without the need for tax dollars to cover their operational expenses. Instead, the money obtained from postage and shipping of parcels is used to fund the operations.


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