On Friday, October 16, 2015, the United States Postal Service announced its intention to increase shipping rates, effective January 17, 2016. The average cost for shipping would rise by 9.5% or approximately $5.50 per shipment. Priority Mail rates would increase by 9.8%, with prices ranging from $6.80 to $18.75, depending on box size. Rates for Priority Mail Express (with guaranteed overnight delivery) would increase by 15.6%. And, some international and business-oriented mail would also see increases in prices.
The Postal Regulatory Commission (PRC) must approve the proposed rate increases, and is expected to announce its decision by November 16, 2015. If approved, the Priority Mail rate increase would be the first for that class mail service since 2013. The proposal for rate increases does not include any new increase in the price of First Class mail delivery or products such as the Forever stamp.
Federal Express and UPS have also increased shipping prices and boosted fuel surcharges, even as oil prices and corresponding fuel costs have recently fallen. For domestic, import and export services, and for ground and home delivery, FedEx announced an average price increase of 4.9%, effective as of January 4, 2016. As of December 28, 2015, UPS will effectuate a rate increase averaging 5.2%. FedEx and UPS have justified the price increases in part as a response to an increase in the number of home deliveries of larger, heavier packages.