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USPS Imposes 6% Peak Season Surcharge on Parcel Services

The U.S. Postal Service announced a 6% surcharge on domestic parcels during the October holiday peak season, matching strategies employed by rival carriers FedEx and UPS. The temporary adjustment applies to Priority Mail, Priority Mail Express, Ground Advantage and Parcel Select offerings for both retail and commercial customers beginning in October. USPS cited rising operational costs and fuel expenses tied to Middle East supply disruptions as justification for the increase. The Postal Regulatory Commission must approve the surcharge before implementation. An earlier 8% fuel surcharge implemented in April is scheduled to run through January. Fuel surcharge hikes and new fees for heavier packages and premium services have pushed ground and express parcel costs up 5% to 6% in the second quarter. FedEx has already announced comparable peak season demand surcharges. Many shippers are exploring independent carriers to manage escalating costs. UPS is expected to announce its peak surcharge strategy.