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Will Postage Rates Increase in 2020?

Going to the Post Office is never fun. It’s even less fun if your trip results in higher shipping rates. Last October, the US Post Office had announced its intention to raise some postage rates. The new rates were to go into effect on Sunday, January 26, 2020.

While the Postal Regulatory Commission (PRC) has rejected the Postal Service’s planned 2020 rate increase, we’re not out of the woods, just yet: the PRC rejection was motivated by a violation of the price cap regulations, saying that the proposed rate hikes exceeded the maximum increases allowed. This means that the US Post Office is still in time to revise its proposal to comply with the regulations and ensure that rate increases will still go into effect by the planned change date. In fact, the PRC has advised the USPS to file a new proposal in time to allow for a review and approval before the deadline set for the original increase.

In the meantime, however FedEx and UPS have also announced price increases at the beginning of the year. FedEx will raise pricing by an average of 4.9% beginning January 6, 2020.

Not all postage will be affected, so read on for some good news.

The bad news is that almost all rate types will be impacted by the increase. Some rates will see a higher increase than others, with specific rates reaching hikes of 2.8%.

Before we look at the rate increase details for the US Post Office, let’s take a look at some good news:

Here is how the original rate changes would have affected key rate classes:

Priority Mail – 2020 Rates (Commercial Base Pricing)

Weight (lbs.)Zones 1 & 2Zone 3Zone 4Zone 5Zone 6Zone 7Zone 8Zone 9
1$0.07$0.07$0.07$0.15$0.16$0.16$0.17$1.49
2$0.22$0.23$0.24$0.26$0.29$0.31$0.33$2.28
3$0.23$0.24$0.25$0.28$0.35$0.39$0.46$3.09
4$0.23$0.25$0.26$0.30$0.41$0.47$0.53$3.72
5$0.23$0.25$0.27$0.31$0.47$0.54$0.61$4.33

An average of 2.8% increase in postage rates from 2019 to 2020 for this class.

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 Priority Mail Flat Rate – 2020 Rates (Commercial Base Pricing)

ProductCurrentProposedChange
Small Flat-Rate Box$7.90$8.305.1%
Medium Flat-Rate Box$14.35$15.054.9%
Large Flat-Rate Box$19.95$21.105.8%
APO/FPO Large Flat-Rate Box$18.45$19.606.2%
Regular Flat-Rate Envelope$7.35$7.755.4%
Legal Flat-Rate Envelope$7.65$8.055.2%
Padded Flat-Rate Envelope$8.00$8.405.0%

First Class Package Service – 2020 Rates (Commercial Base Pricing)

WeightZones 1 & 2Zone 3Zone 4Zone 5Zone 6Zone 7Zone 8Zone 9
1 ounce$0.08$0.08$0.08$0.08$0.09$0.09$0.09$0.09
2 ounces$0.08$0.08$0.08$0.08$0.09$0.09$0.09$0.09
3 ounces$0.08$0.08$0.08$0.08$0.09$0.09$0.09$0.09
4 ounces$0.08$0.08$0.08$0.08$0.09$0.09$0.09$0.09
5 ounces$0.03$0.03$0.03$0.03$0.03$0.03$0.04$0.04
6 ounces$0.03$0.03$0.03$0.03$0.03$0.03$0.04$0.04
7 ounces$0.03$0.03$0.03$0.03$0.03$0.03$0.04$0.04
8 ounces$0.03$0.03$0.03$0.03$0.03$0.03$0.04$0.04
9 ounces$0.11$0.12$0.12$0.12$0.12$0.13$0.13$0.13
10 ounces$0.11$0.12$0.12$0.12$0.12$0.13$0.13$0.13
11 ounces$0.11$0.12$0.12$0.12$0.12$0.13$0.13$0.13
12 ounces$0.11$0.12$0.12$0.12$0.12$0.13$0.13$0.13
13 ounces$0.10$0.10$0.10$0.15$0.16$0.16$0.17$0.17
14 ounces$0.10$0.10$0.10$0.15$0.16$0.16$0.17$0.17
15 ounces$0.10$0.10$0.10$0.15$0.16$0.16$0.17$0.17
15.999 ounces$0.10$0.10$0.10$0.15$0.16$0.16$0.17$0.17

First Class Package Service – 2020 Rates (Commercial Base Pricing)

An average of 2.2% increase in postage rates from 2019 to 2020 for this class.

Media Mail – 2020 Rates

Weight
(lbs.)
ProposedCurrentIncrease
1$2.80$2.75$0.05
2$3.33$3.27$0.06
3$3.86$3.79$0.07
4$4.39$4.31$0.08
5$4.92$4.83$0.09
6$5.45$5.35$0.10
7$5.98$5.87$0.11
8$6.52$6.39$0.13
9$7.06$6.91$0.15
10$7.60$7.43$0.17

Priority Mail Express – 2020 Rates (Commercial Base Pricing)

Weight (lbs.)Zones 1/2Zone 3Zone 4Zone 5Zone 6Zone 7Zone 8Zone 9
0.5$0.07$0.57$0.56$0.79$0.87$0.95$1.37$2.28
1$0.26$1.43$-1.21$-0.91$0.36$0.28$1.53$2.50
2$0.47$1.63$-0.40$0.94$2.51$2.48$3.44$5.18
3$0.67$2.30$-0.96$0.42$2.18$2.04$3.10$4.75
4$0.88$2.35$0.08$-0.16$2.15$1.84$2.79$4.40
5$0.09$0.76$0.99$1.49$1.64$1.79$2.56$4.18

An average of 2.2% increase in postage rates from 2019 to 2020 for this class.

Priority Mail Express Flat Rate – 2020 Rates (Commercial Base Pricing)

ProductCurrentProposedChange
Flat Rate Envelope$22.68$26.3516.2%
Legal Flat Rate Envelope$22.80$26.5016.2%
Padded Flat Rate Envelope$23.18$26.9516.3%

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