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Effective Jan 24 2021 USPS Annual Rate Increase

The U.S. Postal Service has announced the annual rate increase for their shipping services to take effect on Jan. 24th, 2021. On average, Priority Mail service will increase by 3.5 percent, while Priority Mail Express service will increase by 2.5 percent. The numbers don't simply apply to all packages, as specific rates differ depending on dimension, zone, weight, etc. Customers should pay attention to specific services they need and the rates that apply, and ShipSaving will highlight points of interest in the article below.


NEW Surcharge Rule

Before diving into the specifics, we bring to your attention that an additional $100 overweight/oversize surcharge will be added for packages with length plus girth exceeding 130 inches or the 70 lbs. maximum weight. To check if your packages apply, use the formula below for calculation:

the length of a package + 2 * (height + width) > 130 inches


Priority Mail Flat Rate - More expensive to ship large boxes

For the most popular Priority Mail service, Flat Rate increases gain in cost as the Flat Rate Box increases in size. For example, Small Flat Rate boxes are increasing only $0.25 (3.5%) while the Large Flat Rate Box is increasing $1.00 (5.46%). See attached for the detailed price chart.


Priority Mail - Heavier and farther in distance cost more

Priority Mail will see an average increase of 3.6%, but rates will increase significantly for heavier packages that are travelling to Zone 6 and up. For packages weighing 11 lbs. or higher, the rate increase is a minimum of 7%, while rate increases for packages weighing up to 6 lbs. in Zone1-5 are 2.04% or lower.


Priority Mail Express Flat Rate - Remains the same

Priority Mail Express Flat Rate will NOT increase in 2021.


Priority Mail Express - No increase for Zone 1-3

While rates for Priority Mail Express will increase by 2.5 percent overall, USPS has decided not to charge extra for packages weighing under 20lbs., being delivered to Zone 1 through Zone 3. See the chart below for price increase for packages weighing from 0.5 to 5 lbs.


First Class Package Service

Even though the rates for First Class Package will overall increase by 6.50%, it’s still the best deal among all shipping couriers in the U.S.


Parcel Select Ground - Rates decline for low weight packages

Overall rates for Parcel Select Ground will increase only by 1.3% in 2021, while many low weight packages are actually declining, as much as $0.34 cents. Same as Priority Mail, rates for heavy packages (up to 70lbs.) travelling to farther destinations are increasing significantly.