USPS Holiday Surcharge Returns on October 6, 2024

On September 5th, it was reported by foreign media that the United States Postal Service (USPS) will reinstate holiday surcharges on certain parcel services as the year-end peak season approaches.

The holiday surcharge pricing, approved by the Postmaster General on August 8th, includes an average increase of 4.9% for Priority Mail Express, 5.5% for Priority Mail, and 6.4% for Ground Advantage. Prices for Parcel Select, Special Services, and International Competitive shipping services will remain unchanged.

Following a review by the Postal Regulatory Commission, the holiday surcharge will take effect on October 6, 2024, and will remain in place until January 19, 2025. According to USPS, this temporary price adjustment will "help cover additional processing costs to ensure a successful peak season." The surcharge is expected to contribute an additional $77 million in parcel revenue for the 2025 fiscal year, although parcel delivery volumes are anticipated to decrease by 38 million units.

Last year, USPS announced the removal of the surcharge in an effort to lower prices and capture more holiday parcel business from competitors like UPS, FedEx, and Amazon. In the 2023 fiscal year, USPS delivered over 7 billion parcels, generating over $31.6 billion in revenue. In comparison, the 2022 fiscal year saw the delivery of 7.23 billion parcels, with total revenue of $31.31 billion.