USPS Hikes Prices for Competitive Products Starting This Summer
Published Date: 5/15/2026
Notice
Summary
The Postal Service is changing prices and rules for its Competitive products starting July 12, 2026. This affects businesses and customers who use these services, with new rates soon to take effect. The public can share their thoughts by June 5, 2026, so don’t miss your chance to speak up!
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Analyzed Economic Effects
9 provisions identified: 3 benefits, 6 costs, 0 mixed.
Large Parcel Select surcharge increases
The Governors' Decision lists a 57.9% average price increase for 'Forward and Return to Sender Parcel Select' effective July 12, 2026. This raises the price for that Parcel Select business mailing fee category.
Address correction/shipper-paid forwarding jump
The filing lists a 68.8% average price increase for 'Address Correction Service with Shipper Paid Forwarding/Returns, Parcel Select' effective July 12, 2026. This increases charges tied to address-correction and shipper-paid forwarding/returns.
USPS Ground Advantage: retail vs. commercial
USPS plans to change prices for USPS Ground Advantage effective July 12, 2026: retail rates are unchanged (0%) while commercial rates increase by 11.8%. This applies to domestic Ground Advantage Competitive product pricing.
Dimensional weight divisor lowered to 139
The Postal Service proposes lowering the dimensional divisor used in dimensional weight calculations from 166 to 139 across all domestic Competitive products, effective July 12, 2026. This changes how dimensional weight is computed for pricing.
Competitive PO Box price increase
The Postal Service proposes a 3.0% average price increase for Competitive Post Office Box service starting July 12, 2026. This will raise the cost of renting Competitive PO Boxes by the stated percentage.
HazMat handling and noncompliance fee
The Postal Service proposes a HazMat Handling Fee for Priority Mail and Priority Mail Express and a HazMat Noncompliance Fee of $7.50 when it detects undeclared hazardous materials. The MCS will include a HazMat structure for Parcel Select and Ground Advantage but start it at $0 for July 2026.
Connect Local adds USPS Smart Lockers
The Postal Service proposes expanding the Connect Local definition to allow use of USPS Smart Lockers as pickup and drop-off locations. The change is intended to let the Postal Service explore revenue opportunities using Smart Lockers at destination delivery units.
New Addresses API under Address Enhancement
The Postal Service proposes introducing an Addresses Application Programming Interface (API) service and pricing under Address Enhancement Services in July to validate and correct address information and improve delivery. The filing states both the new Addresses API and the existing Address Matching System API will continue.
Package Intercept preserves original rate category
The Postal Service proposes a minor change to Package Intercept so that intercepted packages will use the original product and rate category chosen by the customer rather than being forwarded or returned as Priority Mail, effective July 12, 2026.
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