USPS Holiday Surcharges Could Call for a Peak Season Pivot

The U.S. Postal Service (USPS) will introduce temporary surcharges on several parcel shipping services during the 2025 holiday season, including Priority Mail Express, Priority Mail, Ground Advantage, and Parcel Select. Pending approval from the Postal Regulatory Commission (PRC), these surcharges will take effect at 12:00 a.m. Central on October 5, 2025, and remain in place through January 18, 2026.

USPS says the adjustments are necessary to offset higher operational costs during peak shipping months and to align pricing with other major carriers. They are also part of the Delivering for America 10-year transformation plan, which aims to improve service reliability and strengthen the organization’s financial position. Like FedEx and UPS, USPS experiences significant seasonal volume increases, making temporary rate changes a standard industry practice.

Financial Context and Rate Impact

The announcement comes amid continued financial challenges for USPS. In the third quarter of fiscal year 2025, covering April 1 to June 30, the agency reported a net loss of $3.1 billion, compared to $2.5 billion during the same period in 2024. Rising costs, including worker compensation and benefits, contributed to the larger deficit (USPS).

Surcharge amounts will vary depending on service type, package weight, and delivery zone. Lighter, shorter-zone shipments will see smaller adjustments, while heavier, long-distance packages—particularly via Priority Mail Express—will face higher increases. FreightWaves estimates that the surcharges will average about 4.1% for Priority Mail and 5.1% for Ground Advantage, with added costs ranging from a few cents to over $5 per shipment.

What Shippers Should Prepare For

With surcharges in effect well beyond the holiday rush—lasting until mid-January—shippers should plan for impacts on both peak-season and post-holiday returns. Reviewing USPS’s updated rate tables ahead of October 5 will be critical for accurate forecasting and budgeting. Shippers may also want to analyze how these surcharges compare to FedEx and UPS peak-season adjustments, as well as explore opportunities to optimize carrier mix, routing, or service levels to help control costs.

Learn More in Our Upcoming Webinar

The upcoming webinar, Q3 Essential Insights for Shippers with Bart De Muynck, will cover several timely topics: what’s new in parcel shipping and the cost-control moves shippers should be considering, the latest updates on global trade and tariffs, AI’s role in logistics, and final checkpoints to prepare for peak season. The session takes place on August 19th, 2025 at 2:00 p.m. EST.

Register here to get the full breakdown.