Supply Chain Dive reports that the U.S. Postal Service is preparing a broad package pricing reset for early 2027 as it continues to face heavy financial pressure. The agency announced the moves on Thursday, with board approval in place and Postal Regulatory Commission review still ahead of the effective date.
Domestic Rates and the New Fuel Surcharge
Starting January 17, 2027, USPS plans an average 5.9% increase on domestic package products including USPS Ground Advantage, Priority Mail, Priority Mail Express, and Parcel Select. That average aligns with upcoming rate moves from FedEx and UPS, and sits below some of the larger bumps USPS applied at the start of 2026.
In parallel, USPS will make its fuel-related pricing permanent. An 8% charge added in April to offset transportation costs, scheduled to run through January 17, will become an 11% total fuel surcharge. The agency cites a further rise in fuel prices for the extra 3%. The surcharge does not apply to international products at this time. USPS said it will reassess the surcharge in July 2027 using fuel prices from the first half of the year.
Longer term, USPS filed with the Postal Regulatory Commission to adjust fuel surcharges on a weekly basis using average fuel data from the U.S. Energy Information Administration, mirroring private carriers. Customers can start system changes for a dynamic surcharge now; USPS intends to authorize related rate and classification updates later in 2027.
International Shipping and Financial Context
USPS also plans an average 7.9% increase on Priority Mail International, Priority Mail Express International, First-Class Package International Service, and International Priority Airmail.
The agency posted a $6.5 billion net loss in fiscal year 2026. Price increases helped results despite weaker volume: shipping and packages revenue rose 5.1% year over year while volume fell 5.3%. The board said the new rates aim to keep USPS competitive while bringing in needed revenue.
Postmaster General and CEO David Steiner told governors Tuesday that revenue ties to service performance and pricing, and that further gains depend on continued improvement in both.
