US Postal Service to Raise Shipping Charges by Over 6 Percent

The decision comes as the postal services recently reported a $3.3 billion net loss for the second quarter of fiscal year 2025.

A worker unloads a USPS truck in Norfolk, Va., on Jan. 26, 2018. Samira Bouaou/The Epoch Times

The U.S. Postal Service (USPS) intends to increase shipping prices effective July 13 and has filed a notice with the Postal Regulatory Commission on the matter, the agency said in a statement.

“The changes would raise domestic shipping services prices approximately 6.3 percent for Priority Mail service, 7.1 percent for USPS Ground Advantage, and 7.6 percent for Parcel Select. Prices are not changing for Priority Mail Express service,” the company said on May 9.

Priority Mail is one of the fastest delivery services offered by USPS, with packages arriving at destinations in two to three business days. Ground Advantage delivers in around two to five days, while Parcel Select is a solution for high-volume shippers, with packages taking two to eight days for delivery.

The rate increases were approved by the Board of Governors last week. “The USPS governors believe these new rates will keep the Postal Service competitive while providing the agency with needed revenue.”

The rate changes will support USPS’s $40 billion investments and continue the improvement and modernization of its operations, the postal service said.

Pricing changes have been implemented as part of the Delivering for America initiative, a 10-year plan introduced in 2021 that aims to boost the postal service’s financial situation.

USPS revealed its Q2 financial results for fiscal year 2025 on May 9, reporting a net loss of $3.3 billion, up from a $1.5 billion loss in the same quarter last fiscal year.

“As we mark 250 years of service to the nation, our organization continues to face economic headwinds. We are working diligently to control costs, increase revenues, and transform and modernize our infrastructure,” said acting Postmaster General Douglas Tulino.

“At the same time, we are seeing strong market acceptance of shipping products like USPS Ground Advantage and adopting an increasingly competitive posture across our product portfolio.”

In fiscal year 2024, USPS reported a net loss of $9.5 billion, up by $3 billion compared to the previous fiscal year.

USPS has initiated several cost-cutting measures to improve its financial position.

On March 13, former Postmaster General Louis DeJoy said USPS had terminated 30,000 workers since fiscal year 2021. On March 20, USPS revealed it had cut down 50 million work hours, boosted productivity, and shut down unnecessary facilities, which amounts to $2.5 billion in annual savings.

Leadership Change

USPS is currently changing leadership. Following DeJoy’s resignation in March, the USPS Board of Governors elected David Steiner as Postmaster General and CEO, the agency said in a May 9 statement.

Steiner serves on the board of USPS competitor FedEx and other companies. He is expected to leave the FedEx board before joining USPS, the service said.

“We anticipate Steiner will formally join the organization in July, assuming his successful completion of the ethics and security clearance vetting processes.”

The National Association of Letter Carriers, a union representing 295,000 active and retired letter carriers, had warned against appointing Steiner in a May 6 statement.

Appointing Steiner to lead USPS is a “clear conflict of interest,” it said. “His selection isn’t just a conflict of interest—it’s an aggressive step toward handing America’s mail system over to corporate interests.”

“Private shippers have been waiting to get USPS out of parcel delivery for years. Steiner’s selection is an open invitation to do just that.”

Nonprofit advocacy Keep US Posted, dedicated to the long-term health of USPS, supported the appointment of Steiner in a May 7 post.

Kevin Yoder, Keep US Posted executive director, said the group aims to work with Steiner to make sure the postal service prioritizes its long-term sustainability and ensures affordable access to mail for Americans.

“This is a pivotal moment for the Postal Service, as self-inflicted service failures, ever escalating costs, and volume-killing rate increases by Louis DeJoy under the Delivering for America plan have pushed USPS to the brink of failure,” he said.

“We are optimistic that Steiner’s leadership will strengthen the institution’s mission of delivering reliable, affordable mail services to every American, every day.”