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ARTICLE · 24 JUNE 2024

USPS Parcel Select Rate Increase: What Shippers Need To Know And How To Adapt

AlixPartners Asia LLC
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The United States Postal Service (USPS) announced a 25% average rate increase for its popular Parcel Select service, effective July 2024. This increase, part of the USPS's strategic "Delivering for America"

United StatesTransport
Steve Scales
Steve Scales
Alison Ponder
Alison Ponder
James Stevens
James Stevens
James Roe
James Roe
Vikas Chandra
Vikas Chandra
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The United States Postal Service (USPS) announced a 25% average rate increase for its popular Parcel Select service, effective July 2024. This increase, part of the USPS's strategic "Delivering for America" 10-year plan to enhance service delivery and ensure the organization's financial sustainability, is expected to have a major impact on high-volume carriers such as FedEx and UPS, who leverage this service to reach regional destinations. Shippers should consider mitigation opportunities now as these carriers adjust their rates to maintain their margins in the face of revenue declines for both FedEx and UPS in 2023 and a drop in U.S. parcel revenue for the first time in seven years.

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