Fuel costs continue to rise, and the U.S. Postal Service can't hold on anymore

Ask AI · Can temporary price increases alleviate the long-term losses of the United States Postal Service?

According to a report by Zhongxin Jingwei on March 26, the United States Postal Service announced on Wednesday that it is applying for approval to temporarily increase prices for priority mail and package delivery services by 8%. This adjustment is set to take effect on April 26 to address the continuously rising transportation fuel costs.

The report states that this temporary price increase requires approval from the Postal Regulatory Commission. The United States Postal Service indicated that this additional fee will serve as "a bridge" to establish a long-term mechanism that reflects market conditions in the pricing of competitive products.

It is reported that the price increase plan will be in effect until January 17 of next year, at which time the United States Postal Service will assess whether other long-term solutions are needed.

The United States Postal Service noted that since the outbreak of the relevant conflicts in Iran and the significant rise in oil prices, FedEx and UPS have imposed fuel surcharges of 25% to 28% on ground and air delivery services.

The United States Postal Service stated, "Transportation costs continue to rise, and competitors have implemented multiple surcharges. We have consistently avoided imposing surcharges, and this fee is less than one-third of the separate fuel surcharges imposed by competitors."

Data shows that since 2007, the United States Postal Service has accumulated net losses of $118 billion, and the volume of its most profitable mail services has fallen to the lowest level since the late 1960s. (Zhongxin Jingwei APP)