Be Prepared: USPS Rates are Increasing in January

Be Prepared: USPS Rates are Increasing in January

The United States Postal Service announced that it will be raising its rates again in 2019.   Effective January 27, rates will go up an average of 2.5%.   While mailing services are based off the Consumer Price Index (CPI), shipping services reflect market conditions.   The Governors of the Postal Service believe that the new rates will keep the USPS competitive with the market while providing added revenue for the agency.

Here are some of the details.   Priority Mail Express will go up 3.9% and Priority Mail will increase by 5.9%.  There will also be a $0.05 increase in the price of the First-Class stamp, bringing it to $0.55.  First-class packages, which are often used by retailers for fulfillment purposes, will go to zone-based pricing.  And, the dimensional divisor for Priority Mail is being reduced to 166, so heavier DIM weight packages will cost more to ship.

The following is a list of all of the changes for mail and shipping services:

Mail

Product
Letters (1 oz.)
Letters additional ounces
Letters (metered 1 oz.)
Outbound International Letters (1 oz.)
Domestic Postcards
Current
50 cents
21 cents
47 cents
$1.15
35 cents
Proposed
55 cents
15 cents
50 cents
$1.15
35 cents

Shipping

Product
Small Flat Rate Box
Medium Flat Rate Box
Large Flat Rate Box
APO/FPO Large Flat Rate Box
Regular Flat Rate Envelope
Legal Flat Rate Envelope
Padded Flat Rate Envelope
Current
$7.20
$13.65
$18.90
$17.40
$6.70
$7.00
$7.25
Proposed
$7.90
$14.35
$19.95
$18.45
$7.35
$7.65
$8.00

The USPS still has the lowest shipping rates on average when compared to UPS and FedEx.  Also, consider there is no surcharge for fuel, peak season, or Saturday delivery, like the other carriers.   So while rates are increasing, the Postal Service still easily remains the most affordable shipping option for many situations.

The Postal Regulatory Commission (PRC) will review the price increases before they take effect in January.  The entire list of price filling can be found on the PRC site for October 10 at https://www.prc.gov/dockets/daily.