USPS Plans Shipping Price Increases in 2025

The United States Postal Service (USPS) has proposed a price increase for shipping services, with hikes of approximately 3.2% for Priority Mail and nearly 4% for USPS Ground Advantage, set to take effect on January 19, 2025, pending regulatory approval. This decision follows a reported net loss of $9.5 billion in the 2024 fiscal year, driven largely by fixed costs such as pension contributions and workers' compensation. In contrast, Canada Post is experiencing a nationwide strike involving about 55,000 workers demanding better wages and working conditions, which has halted mail processing and deliveries. Despite the price increases, USPS will not raise rates for mailing services, keeping first-class stamp prices stable for now. The USPS aims to enhance competitiveness and generate needed revenue through these adjustments. The agency anticipates an ongoing trend of financial losses, projecting a $6.9 billion net loss for the 2025 fiscal year.