The U.S. Postal Service proposed an average 5.9% increase in domestic package shipping prices, along with a permanent fuel surcharge, as the agency seeks to shore up its finances after another multibillion-dollar annual loss.
USPS filed notice with the Postal Regulatory Commission on November 12. The agency plans to implement the changes on January 17, 2027, following regulatory review. The proposal does not raise the price of a first-class stamp.
The domestic rate increases cover Priority Mail, Priority Mail Express, USPS Ground Advantage, and Parcel Select. International shipping prices would rise an average of 7.9% across four services, including Priority Mail International and First-Class Package International Service.
USPS wants to convert the temporary 8% transportation charge it introduced in April into a permanent fuel surcharge and increase it by 3 percentage points to 11%. The surcharge would not apply to international products under this proposal. The agency plans to reassess it in July 2027 based on fuel prices during the first half of the year.
The proposal arrives ahead of the holiday shopping season, when many households and small businesses rely on package delivery. Customers can review the proposed January price tables through USPS Postal Explorer.
The proposal comes just two days after USPS announced a $6.5 billion net loss for the fiscal year that ended September 30, down from $9 billion a year earlier. Operating revenue climbed 3% to $82.9 billion, but operating expenses reached $89.4 billion.
Even as shipping and package revenue rose 5.1%, the agency handled 359 million fewer pieces in that category, a 5.3% decline. First-Class Mail volume fell 5.1%. USPS also cited higher transportation costs, including rising fuel expenses.
The Postal Service generally funds its operations through postage and service sales rather than tax dollars. It has asked Congress to raise its $15 billion statutory debt limit, which has remained unchanged since 1992, and revise pension funding rules. The agency also said it deferred approximately $2.6 billion in federal employee retirement contributions during the fiscal year.
As The Dallas Express covered in July, USPS raised the price of a Forever stamp from 78 cents to 82 cents. That price remains unchanged under the January shipping proposal.
The commission must review the new shipping rates before they take effect. USPS identifies the competitive products filing as Docket No. CP2027-1.
