USPS Announces ANOTHER Rate Hike Starting October 2022
Posted by Big Brand Wholesale.com on 24th Sep 2022
Although we ship your order for free here at BigBrandWholesale.com, USPS is raising rates... AGAIN on online sellers all over the country. Here's all the details you need to know if you ship your orders using USPS:
The Postal Service’s proposed rate hikes are in line with last peak season’s levels, and they “frankly seem pretty reasonable compared to what FedEx has proposed,” Gordon Glazer, a senior consultant and USPS specialist at Shipware, said on LinkedIn.
But the operating environment the agency finds itself in this year is markedly different, as home delivery demand cools from its 2021 highs.
The Postal Service announced the increases one day after reporting a rough Q3 in which it posted a $459 million loss fueled by inflationary pressures. An $85 million year-over-year revenue drop inits shipping and package category, driven by a 5% volume decline, contributed to the loss.
Package delivery demand for the Postal Service is still elevated relative to pre-pandemic levels, and packages have grown to become a larger share of the agency’s volume mix compared to mail. The Postal Service does not anticipate that this mix will return to pre-pandemic conditions, per its Q3 release, elevating the importance of package pricing and delivery service levels.
To improve sortation throughput during the critical peak season, the Postal Service is adding around 120 package sorting units to its network this year, bringing its total to 250 units.
“This, combined with improved operating practices, will make the United States Postal Service your best option to ship your packages,” Postmaster General and CEO Louis DeJoy said during prepared remarks at a Postal Service Board of Governors meeting Tuesday.
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