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A wave of U.S. Postal Service pricing changes is set to take effect next month, introducing fresh cost pressures for parcel shippers.
On July 12, the agency will change how it calculates the size and rates for large-but-lightweight packages, expand its dimensional reporting requirements, and eliminate ounce-based rates for certain USPS Ground Advantage shipments. Some of the changes could catch unprepared shippers off guard and increase their transportation costs, experts told Supply Chain Dive.
The changes align the Postal Service’s pricing practices more closely with those of FedEx and UPS. The adjustments could also draw in additional revenue for the financially ailing agency. However, the moves come with some risk attached, as customers could explore other delivery options, said Mark Waverek, managing partner at PlaidMark Management Consulting Services.
"The biggest challenge probably for the Post Office is maintaining or retaining existing customers through these changes," Waverek said.
