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USPS proposes peak season rate hikes amid drop in package demand

August 12, 2022

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The Postal Service’s proposed rate hikes are in line with last peak season’s levels, and they “frankly seem pretty reasonable compared to what FedEx has proposed,” Gordon Glazer, a senior consultant and USPS specialist at Shipware, said on LinkedIn.

But the operating environment the agency finds itself in this year is markedly different, as home delivery demand cools from its 2021 highs.

The Postal Service announced the increases one day after reporting a rough Q3 in which it posted a $459 million loss fueled by inflationary pressures. An $85 million year-over-year revenue drop in its shipping and package category, driven by a 5% volume decline, contributed to the loss.

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