Beginning Jan. 24, 2021 USPS is imposing rate increases.

In a short (but not so sweet) update, USPS announced price increases across all service levels. The increases, approved by the Postal Service Board of Governors, will raise Mailing Services products by 1.8% for First-Class Mail, 6.5% for Priority Mail, and 1.5% for other categories. While USPS based these price increases on the consumer price index, price increases for International Shipping Services are based on market conditions. The Board of Governors hope to keep the Postal Service competitive while also increasing revenue.

In the world of domestic letters, there are also some notable changes. Thankfully the rate increases, approved by the Postal Regulatory Commission, do not apply to Forever stamps which will remain priced at $0.55. There are also no price changes for 1 oz. letters and 1 oz. flats.

  • First-Class Mail letters (each additional ounce) increase from $0.15 to $0.20.
  • Metered letters (1 oz.) increase from $0.50 to $0.51.
  • Domestic postcards increase from $0.35 to $0.36.

Priority mail envelopes will see increases in three levels. 

  • Priority Mail Flat Rate Envelopes increase from $7.75 to $7.95.
  • Priority Mail Padded Flat Rate Envelopes increase from $8.40 to $8.55.
  • Priority Mail Legal Flat Rate Envelopes increase from $8.05 to $8.25.

There won’t be any increases for Priority Mail Express.

But now for the stuff our customers are interested in; small parcel rate increases. There are quite a few changes so we made it into an easy to read chart.

These changes amount to a 6.5% increase for First Class Package Service and 1.3% increase for Parcel Select Ground service. 

The rate changes also include updates to various special services.

Despite these rate increases, the postal service does not impose surcharges for fuel, residential delivery, or Saturday delivery. Still, at 6.5% for package service, USPS ends up being higher than UPS and FedEx’s 2021 rate increases at certain service levels. It is more vital than ever before that shippers have access to a multi-carrier TMS enabling them to find the right provider at the right time for their packages. Seeing all options on one screen not only saves your team time, but ultimately will save on cost by taking the guesswork out of your supply chain.