USPS 2023 Price Increase & Impact on Shippers

USPS announced a general rate increase (GRI) for shipping services to go into effect on January 22, 2023.

This year’s changes come on the heels of last year’s massive increases and as the USPS enters its 3rd post-Covid Q4 holiday peak.

This announcement is for the USPS Competitive rate change (Shipping) and is greatly influenced by market conditions (UPS General Rate Increase/FedEx General Rate Increase, etc.). It should not be confused with the Market Dominant Rate change (Mailing Products) that the PRC (Postal Regulatory Commission) is also reviewing.

Unlike the last two years, this year’s peak will have ample carrier capacity, shippers will find no trouble selecting carriers to meet their needs best, and carriers are negotiating in good faith again. However, shippers should remember how their carriers treated them. Based on volume size, shippers experienced very different discussions with their carriers. The largest shippers took the most significant increases over the past two years. They were grateful for their carriers just to pick up and transport regardless of price. At the same time, smaller shippers could compete better, as an increased volume with their smaller discounts led to record carrier profits.


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