POSTAGE RATE HIKE ON PRIORITY MAIL, GROUND ADVANTAGE, AND PARCEL SELECT EFFECTIVE JANUARY 19

U.S. Postal Service Recommends New Competitive Prices for 2025

WASHINGTON, DC — The Postal Service filed notice with the Postal Regulatory Commission (PRC) for Shipping Services price changes to take effect January 19, 2025. The proposed adjustments were approved by the Governors of the USPS this week.

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The change would raise Shipping Services prices approximately 3.2 percent for Priority Mail service and Priority Mail Express service, 3.9 percent for USPS Ground Advantage and 9.2 percent for Parcel Select.

Although Mailing Services price increases are based on the consumer price index, Shipping Services prices are primarily adjusted according to market conditions. The governors believe these new rates will keep the Postal Service competitive while providing the agency with needed revenue. As was previously announced, the Postal Service will not be raising prices in January for our Mailing Services.

From the USPS Board of Governors Decision:

A. Priority Mail Express

Overall, the Priority Mail Express price change represents a 3.2 percent increase. In 2023, we consolidated the Commercial Base and Commercial Plus price categories into one Commercial price category and differentiated the “Local, 1, 2” Zone prices. For January 2025, this new structure will be maintained. Dimensional weighting, which was introduced for all zones in 2019, will also continue in 2025.

Retail prices will increase an average of 3.2 percent. The price for the Retail Flat Rate Envelope, a significant portion of all Priority Mail Express volume, will increase to $31.40, with the Legal Size and Padded Flat Rate Envelopes priced at $31 .65 and $32.25, respectively.

The Commercial price category will increase 3.2 percent on average. Commercial prices will, on average, reflect a 12.4 percent discount off of Retail prices. New for 2025, a Live Animal and Perishable Handling Fee of $7.50 will be introduced under Priority Mail Express to cover the additional costs associated with handling and transporting these items.

B. Priority Mail

On average, the Priority Mail prices will be increased by 3.2 percent. Similar to Priority Mail Express, the Commercial Base and Commercial Plus price categories were consolidated into one Priority Mail Commercial price category and “Local , 1, 2” Zone prices were differentiated in 2023. For January 2025, this new structure will be maintained. Dimensional weighting, which was introduced for all zones in 2019, will also continue in 2025.

Retail prices will increase by an average of 3.2 percent. Retail Flat Rate Box prices will be : Small, $10.65; Medium, $19. 15 ; Large, $26 .30 and Large APO/FPO/DPO, $25 .05 .

Thus, the Large APO/FPO/DPO Flat Rate Box will be $1 .25 less than the Large Flat Rate Box. The regular Flat Rate Envelope will be priced at $10.10, with the Legal Size and Padded Flat Rate Envelopes priced at $10.40 and $10.85, respectively .

The Commercial price category will increase by 3.2 percent on average. Commercial prices will, on average, reflect a 20.8 percent discount off of Retail prices. New for 2025, Governors’ Decision No. 24-7 a Live Animal and Perishable Handling Fee of $15 .00 will be introduced under Priority Mail to cover the additional costs associated with handling and transporting these items.

C. Parcel Select

On average, Parcel Select prices as a whole will increase 9.2 percent. For destination delivery unit (DOU) entered parcels, the average price increase is 10.3 percent. For destination hub (Dhub) entered parcels, the average price increase is 0.0 percent. For destination sectional center facility (DSCF) destination entered parcels, the average price increase is 7 .1 percent. For destination network distribution center (DNDC) parcels, the average price increase is 9.7 percent. For Connect Local, introduced in 2022, the average price increase is 5.4 percent. Dimensional weighting , which was introduced for all zones in 2019, will continue in 2025. To account for inflation, the fee for Forward and Return to Sender will be increased to $3.60, while the fee for Address Correction Service (ACS) with Shipper Paid Forwarding/Returns will be increased to $3 .00 .

D. USPS Ground Advantage

USPS Ground Advantage , introduced in July 2023, is the Postal Service’s flagship ground package product. The existing structure will be maintained for 2025. Overall, USPS Ground Advantage prices will increase 3.9 percent on average. Retail prices will increase 4.9 percent on average, while Commercial prices will increase 3.2 percent on average. The Alaska Lim ited Overland Routes (LOR) price category will see a 9.0 percent average increase for January 2025. New for 2025, a Live Animal and Perishable Handling Fee of $7 .50 will be introduced under USPS Ground Advantage to cover our additional handling costs for these items.