USPS Proposes Sub-Pound Rate Overhaul: What Partners Need to Know
- 3 days ago
- 1 min read
USPS has filed to eliminate ounce-based sub-pound pricing for Ground Advantage Commercial, effective July 12, 2026 (pending PRC approval), resulting in an average 11.8% price increase on published rates. Partners with negotiated commercial rates are not affected.
What's Changing
Sub-pound parcels will all be priced at the highest current tier (12–15.999 oz.), eliminating four weight tiers
Parcel Select forwarding/return fees increase from $3.80 → $6.00
New hazmat fees added for Priority Mail Express and Priority Mail; noncompliance penalties for improper HAZMAT prep
Dim weight formula updated to industry standard — larger/lighter packages will cost more, and USPS acknowledged this may push volume to competitors
3% increase proposed for Parcel PO Box service
Bigger Picture
Ground Advantage is USPS's top performer: volume +19.5%, revenue +23.6% in first half of FY2026 — even as total parcel volume is down 8.1%
USPS posted a $2B net loss in Q2 (improved from $3.3B a year ago); Postmaster General Steiner is leaning on revenue growth over cost-cutting
An 8% temporary rate hike on several services already took effect April 26 amid rising fuel costs — more pricing pressure in Q3
USPS resumed UPS Ground Saver deliveries in January and finalized a scaled-back Amazon deal; Steiner cited Amazon and DHL as key relationship wins
Sources: Supply Chain Dive | FreightWaves