It will soon cost more to ship packages via the United States Postal Service. The USPS announced Wednesday that it will implement a temporary 8% surcharge starting in April “to better align its transportation costs with the market.” Like everyone else, the Post Office is faced with higher fuel costs motivated by the continuing unrest in the Middle East.
The proposed increase will affect Priority Mail Express, Priority Mail, USPS Ground Advantage and Parcel Select, but not first class stamps and other products and services.
If the Postal Regulatory Commission approves the measure, the price change will begin April 26 at midnight Central Time and expire January 17, 2027 at midnight Central Time. At that time, USPS will evaluate whether the surcharge will continue.
Last week, Postmaster General David Steiner told Congress that the USPS would run out of money by next February. He called on Congress to lift regulatory restrictions so the Postal Service can raise prices for products and services.
The Postal Service has been financially struggling for nearly two decades. The Government Accountability Office added the agency to its high-risk list in 2009. Since 2007, it has suffered more than $100 billion in financial losses.
These losses are largely explained by the company’s mandate to deliver more than 170 million addresses during a six-day work week. According to the Wall Street Journal, which originally published this story, this mandate has led to “71% of delivery routes being financially underwater.” This calculation roughly translates to the fact that three out of five post offices are unable to cover their operating costs.
Shipping competitors, such as FedEx and United Parcel Service, have had fuel surcharges for years. Due to the current oil crisis and rising gas prices, these fees have been increased in recent weeks.
