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Sending packages to loved ones this holiday season will be more expensive based on a planned US Postal Service rate increase.
The postal agency’s board approved a peak season plan to increase the cost of commercial and retail parcels from early October to late January to catch the busy Christmas shopping season when parcels cross the country.
Postal officials said the surcharge was necessary to keep rates competitive. The Postal Service generally doesn’t receive taxpayer money, but Congress this year restructured its finances to relieve $107 billion in past due and future obligations. The agency relies on the sale of postal products to fund its operations, but Postmaster General Louis DeJoy said Tuesday that barring significant revisions and rate increases, the agency faces a $60 billion to $70 billion deficit over the next decade .
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Anticipating a large volume of packages, the postal service said it will try to generate additional revenue to cover additional handling costs. The agency said the planned increases are in line with the agency’s 10-year plan to achieve financial sustainability and set reasonable prices.
“The temporary rate adjustments are similar to those in previous years, which help us cover additional processing costs to ensure a successful peak season,” said David Coleman, a spokesman for the agency. “The postal service has some of the lowest postage rates in the industrialized world and continues to offer great value in shipping.”
Retail customers would see increases ranging from 30 cents to more than $6 depending on the weight of the package and the distance it has to travel. For example, the cost of flat-rate boxes and envelopes mailed with Priority Mail or Priority Mail Express would increase by 95 cents according to the pricing plan. Heavier packages sent coast-to-coast with a first-class carrier would cost $5.85 more, the postal service said.
The temporary rates would come into effect on October 2 and last until January 22, 2023.
On Wednesday, the Postal Service filed a notice with the Postal Regulator to request a final review of the peak season pricing plan.
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