USPS Reveals New Fees For 2014; Reaches Sunday Delivery Deal

Would Go Into Effect Jan. 26, 2014

USPSThe United States Postal Service (USPS) has announced that it intends to raise prices on its products by an average of 2.4% in 2014. The new price structure, if approved as expected, would take effect on January 26. In addition to revealing the price increase, the postal service said it also is adding a package delivery option to allow customers to send Priority Mail Express to most locations in the United States by 10:30 a.m. for an additional $5.

“The Postal Service remains the best in value in the shipping business,” said Nagisa Manabe, USPS’ chief marketing and sales officer. “We continue to offer excellent domestic flat-rate shipping with a price that doesn’t vary by destination.”

In a separate announcement, the USPS said it had reached an agreement with to deliver packages for the e-commerce giant on Sundays, beginning immediately in the Los Angeles and New York markets. Amazon and the USPS said they expect to expand the service in 2014 to markets such as Dallas, Houston, New Orleans, and Phoenix. The deal is expected to bring a new revenue stream to the cash-strapped USPS, as it tries to appeal even further to online retailers.

“It will certainly help (our finances),” said Patrick Donahoe, postmaster general of the USPS, which expects to lose about $6 billion in fiscal 2013. “The fastest growing segment is the package business. The future of package delivery is a seven-day-a-week schedule. We’ve got the capacity to do it."