The United States Postal Service is raising rates – again.

USPS announced that it will hike rates during the peak holiday shipping season, starting October 2 and ending January 22.

While those heightened seasonal charges will be temporary, other further permanent rate hikes also loom.

Postmaster General Louis DeJoy on Aug. 9 said that he plans to seek another rise on stamps and other services in January – just five months after the organization raised prices, on average, by 6.5%.

The moves heap another inflationary burden on businesses, including those in the promotional products market, that rely on USPS to transport letters and packages. Still, DeJoy said the increases are necessary as the Postal Service projects that inflation will cause costs to exceed its 2022 budget by more than $1 billion.

Going forward, USPS could seek increases every January and July, starting in January 2023.

“The fact of the matter is that we have a long road and a lot of hard work ahead in our 10-year transformation to ensure the long-term financial sustainability of the Postal Service,” DeJoy said.

Unlike most other Federal government services, the U.S. Postal Service is not funded by tax dollars, but rather through the sale of postages, supplies and other services. The outfit has run at a heavy operating loss for years.

Currently, it’s uncertain what the January rate increases might look like. Meanwhile, the holiday season increased shipping fees would apply to Priority Mail Express, Priority Mail, First-Class Package Service, Parcel Select and USPS Retail Ground. Examples include:

First-Class Package Service, Parcel Select Ground, and USPS Retail Ground:

• Commercial:
  • $0.25 increase for Zones 1-4, 0-10 lbs.
  • $0.40 increase for Zones 5-9, 0-10 lbs.
  • $0.75 increase for Zones 1-4, 11-25 lbs.
  • $1.60 increase for Zones 5-9, 11-25 lbs.
  • $3.00 increase for Zones 1-4, 26-70 lbs.
  • $5.50 increase for Zones 5-9, 26-70 lbs.

• Retail:
  • $0.30 increase for Zones 1-4, 0-10 lbs.
  • $0.60 increase for Zones 5-9, 0-10 lbs.
  • $0.95 increase for Zones 1-4, 11-25 lbs.
  • $2.70 increase for Zones 5-9, 11-25 lbs.
  • $3.25 increase for Zones 1-4, 26-70 lbs.
  • $5.85 increase for Zones 5-9, 26-70 lbs.

In March 2021, DeJoy released a reform plan that makes it a goal to wipe out $160 billion in projected Postal Service losses over the next decade. Even if all goes according to plan, DeJoy believes the organization would still experience losses of $60 to $70 billion over the 10-year timeframe. Rate hikes are part of an effort to reduce those losses.

USPS proclaims that it has “some of the lowest postage rates in the industrialized world.”