U.S. Postal Service Announces Proposed Temporary Rate Adjustments for 2021 Peak Holiday Season

WASHINGTON – The United States Postal Service filed notice today with the Postal Regulatory Commission (PRC) regarding a temporary price adjustment for key package products for the 2021 peak holiday season. This temporary rate adjustment is similar to one in 2020 that anticipated heightened peak-season package and shipping demand, which typically results in extra handling costs.

The planned peak-season pricing, which was approved by the Governors of the Postal Service on Aug. 5, would affect prices on commercial and retail domestic competitive parcels – Priority Mail Express (PME), Priority Mail (PM), First-Class Package Service (FCPS), Parcel Select, USPS Retail Ground, and Parcel Return Service. International products would be unaffected. Pending favorable review by the PRC, the temporary rates would go into effect at 12:00 a.m., Central Time, on Oct. 3, 2021, and remain in place until 12:00 a.m., Central Time, Dec. 26, 2021. 

This seasonal adjustment will bring prices for the Postal Service’s commercial and retail customers in line with competitive practices. No structural changes are planned as part of this limited pricing initiative.

Delivering for America,” the Postal Service’s 10-year plan for achieving financial sustainability and service excellence, calls for appropriate pricing initiatives. The Postal Service has some of the lowest mail postage rates in the industrialized world and continues to offer great values in shipping. These temporary rates will keep the Postal Service competitive while providing the agency with the revenue to cover extra costs in anticipation of peak-season volume surges similar to levels experienced in 2020. The forecasted additional revenue from the time-limited increase will depend on the volume of packages shipped between Oct. 3 and Dec. 26, 2021 – the period the Postal Service historically considers its holiday peak season.

The planned price changes include:

Priority Mail, Priority Mail Express, Parcel Select Ground and USPS Retail Ground:

  • $0.75 increase for PM and PME Flat Rate Boxes and Envelopes.
  • $0.25 increase for Zones 1-4, 0-10 lbs.
  • $0.75 increase for Zones 5-9, 0-10 lbs.
  • $1.50 increase for Zones 1-4, 11-20 lbs.
  • $3.00 increase for Zones 5-9, 11-20lbs.
  • $2.50 increase for Zones 1-4, 21-70 lbs.
  • $5.00 increase for Zones 5-9, 21-70 lbs.
PRODUCTCURRENTPLANNED INCREASE
Parcel Select Destination
Delivery Unit (DDU)
Starts at $3.30No change
Parcel Select Lightweight (DDU)Starts at $2.15No change
FCPS CommercialStarts at $3.0130 cents
FCPS RetailStarts at $4.0030 cents
Parcel Select Lightweight
(DSCF and DNDC)
Starts at $2.55$1.00
Parcel Select DSCFStarts at $4.84$1.00
Parcel Select DNDCStarts at $6.85$1.00
Parcel Return ServiceStarts at $3.21$1.00