Postal Service pricing is poised to rise – another inflationary pressure that promotional products companies that utilize the organization for deliveries of letters and packages will have to take into account as they assess shipping costs.

The United States Postal Service (USPS) is looking to implement rate increases that would see the cost of mailing letters, packages, postcards and direct mail advertisements increase, on average, by 6.5%. Officials have noted that service lines, such as package delivery, could see rate increases of up to 8.5%.

The Postal Service has operated at a loss for years. Its financial position was further hurt by the reduction of certain types of mail volumes during the COVID-19 pandemic, officials have said. That, combined with inflationary pressures and other factors, are propelling the proposed increases. More could be coming in the near future, as Postmaster General Louis DeJoy has said rate rises could come “at an uncomfortable rate.”

“I believe we have been severely damaged by at least 10 years of a defective pricing model, which cannot be satisfied by one or two annual price increases, especially in this inflationary environment,” said DeJoy.

The price hikes, which USPS aims to enact on July 10, 2022, would include a two-cent rise on the cost of a first-class mail forever stamp – from 58 cents to 60 cents. Letters (metered 1 oz.) would jump 4 cents to 57 cents, while the rate for additional letter ounces would increase from 20 cents per ounce to 24 cents per ounce. One-ounce international letters would jump 10 cents to $1.40.

The Postal Service is also aiming to increase prices on a variety of mass mailers. Those potential hikes include a 12.6% rise on mass mailers in sacks.

The price increases would come along with the introduction of a volume pricing model on the organization’s parcel select ground services. Under this initiative, customers sending small, dense and heavy packages will reportedly pay less, while those sending packages that occupy more space in vehicles and warehouses will pay more.

“Adding a cubic pricing option for those using the U.S. Postal Service’s parcel select ground product will be a boon for USPS shippers with small, dense and heavy packages but not so much for others,” Multichannel Merchant reported.

To move forward with the rate increases on July 10 as planned, USPS needs the final approval of the Postal Regulatory Commission, which is expected to OK the hikes.

Word on the rate increases comes as the Postal Service has already begun charging a $1.50 surcharge for all priority mail express, priority mail and parcel select ground deliveries on packages greater than one cubic foot or greater than 22 inches.