Postal Service considering another price hike

U.S. Postal Service
U.S. Postal Service

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So it seems as though just when you’ve run out of stamps, the postal service raises its rates again!

It could be happening again this summer.

The U.S. Postal Service continues to bleed money – it lost $1.9 billion during the last quarter.

There was some consideration to cancelling Saturday service, but Congress said no.

“We had hoped to transition to five day delivery this summer. Our Postal Board of Governors, a month or so ago, advised us that it was best to wait for congressional support to make that move and because Congress hasn’t yet given that support, in the meantime, we’re going to look at ways to reduce costs, and also to increase prices on some of our shipping and mailing products,” said USPS spokesperson Duke Gonzalves.

Those increases could happen as soon as this summer. The fact is, with the advent of e-mail, first class cards and letters have been dropping in volume. But the USPS remains competitive with UPS and FedEx when it comes to parcel shipping.

“We have actually seen increases in the parcel business over the years and we’re going quite well in that sector. Our parcel business is going up every year since we’ve implemented the flat rate boxes which are incredibly popular, especially here in Hawaii,” Gonzalves says.

The Postal Service board of governors will finally determine when and if the cost of postage will go up. But that decision also depends on an agreement with Congress.

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