USPS to add 11% permanent fuel surcharge along with parcel rate hike
The U.S. Postal Service is chasing revenue more aggressively than in the past with a series of price and surcharge adjustments. The post USPS to add 11% permanent fuel surcharge along with parcel rate hike appeared first on FreightWaves .
The U.S. Postal Service (USPS) announced plans to raise shipping rates and add a permanent fuel surcharge, effective Jan. 17. This increase aims to recover heavy diesel fuel expenses after fuel prices skyrocketed due to the Iran war. The new 11% fuel surcharge is higher than the initially proposed rate and surpasses the temporary transportation fee set to expire soon.
This is the first-ever permanent fuel surcharge for the USPS, a practice adopted from private courier companies. The fuel surcharge will not apply to international shipments at this time and will be reviewed in July based on fuel prices in the first half of 2027. Domestic shipping service prices will increase by 5.9% on average for Priority Mail, Priority Mail Express, Ground Advantage, and Parcel Select products, aligning with the 5.9% general rate hikes from FedEx and UPS.
The USPS will also raise prices for specific services, like shortpaid postage, and introduce new fees for non-compliant shipping labels and other ancillary services. Overall, parcel shippers can expect higher costs, with short zones bearing the brunt of the price increase.
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