Dive Brief:
- The U.S. Postal Service is planning to eliminate ounce-based rate differences for shipments within its USPS Ground Advantage Commercial service starting on July 12, the agency announced Monday, a move that could sting some lightweight package shippers.
- Currently, published prices on sub-pound Ground Advantage Commercial parcels vary, with four distinct weight tiers featuring different rates. The proposed change, which is pending review from the Postal Regulatory Commission, would apply rates currently for shipments weighing between 12 and 15.999 ounces to all sub-pound parcels within the category.
- The adjustment would result in an average price increase of 11.8% for Ground Advantage Commercial, according to a filing with the Postal Regulatory Commission. The change wouldn't impact customers with negotiated commercial rates, the agency said.
Proposed USPS Ground Advantage Commercial price increases by weight and shipping distance
| Maximum weight | Zone 1 | Zone 2 | Zone 3 | Zone 4 | Zone 5 | Zone 6 | Zone 7 | Zone 8 | Zone 9 |
|---|---|---|---|---|---|---|---|---|---|
| 4 ounces | +$1.43 | +$1.36 | +$1.66 | +$1.74 | +$1.86 | +$1.86 | +$1.94 | +$2.04 | +$2.04 |
| 8 ounces | +$0.90 | +$0.79 | +$1.12 | +$1.16 | +$1.33 | +$1.42 | +$1.51 | +$1.66 | +$1.66 |
| 12 ounces | +$0.77 | +$0.69 | +$0.97 | +$1.07 | +$1.17 | +$1.12 | +$1.17 | +$1.27 | +$1.27 |
Source: USPS published rates, Postal Regulatory Commission filing
Dive Insight:
The filing with the Postal Regulatory Commission said the change would align Ground Advantage Commercial prices with the rate structure of Parcel Select, which eliminated ounce-based rate differences in 2024. That change led package consolidators partnering with the Postal Service to chase heavier package volume.
The USPS is also looking to make gains in shipping heavier goods, with Postmaster General and CEO David Steiner saying in March that the agency wants to bring its average package weight up closer to FedEx and UPS' levels.
The pricing adjustment proposal comes after the Postal Service reported a year-over-year jump in Q2 operating revenue on Friday, aided by rate increases on package shipping services.
Shipping and packages revenue climbed 4.5% year over year for the quarter that ended March 31, even with volume declining 1.4% YoY. The agency attributed the jump largely to USPS Ground Advantage, which saw revenue and volume increase 19.8% and 14.7%, respectively.
Sub-categories covering the USPS' Priority Mail and Parcel Select services had less success, posting both revenue and volume declines. The agency attributed those decreases in a quarterly filing to "intense market competition, in-sourcing from our major customers and e-commerce retailers, and the trend away from expedited products."
Multiple increases on package delivery prices since last year have lifted the Postal Service's financial results, including rate hikes in July 2025 and January 2026 along with temporary holiday price increases that stretched into Q2. The pricing pressures for shippers are continuing in Q3, as the Postal Service installed an 8% temporary rate hike for several services on April 26 amid climbing fuel costs.
Pricing adjustments are just one method for the Postal Service to improve its financial performance, Steiner said Friday. The agency is also pushing to drive more sales through its last-mile capacity bidding process and strengthening its partnerships with major customers. The Postal Service began delivering a portion of UPS Ground Saver volume again in January, and it recently agreed to a new — albeit scaled back — deal with e-commerce giant Amazon.
"We have seen encouraging developments in certain key customer relationships, including Amazon and DHL," Steiner said. "And we continue to assess our broader business relationships, including with UPS and others, through the same lens: How do we become easier to do business with? How do we fit our network to customer needs? How do we create more value from the assets we have built?"
Additionally, the Postal Service hired Matt Connelly, former VP of network operations at UPS, as its chief solutions and strategy officer to help the agency improve its "network planning execution and alignment across operations, sales and marketing," Steiner said.
Growth in relevance, volume and customer value will position the Postal Service for long-term stability, Steiner said. But the agency also needs immediate help from Congress to "close the gap in the short term," he added.
The Postal Service weathered a $2 billion net loss for the quarter, compared to a $3.3 billion net loss for the same quarter last year. To address the agency's cash crunch, lawmakers must expand the Postal Service's borrowing authority and address other organizational constraints, Steiner said in the quarterly earnings announcement.
