The US Postal Service said it would increase postage rates for mail, postcards and other postal services. during this summer This is part of Postmaster Louis DeJoy’s 10-year plan to overhaul the agency’s weak finances. The cost of stamps for first-class postage will increase to 58 cents from 55 cents today.
DeJoy, whose tenure was marked by controversy over changes to his practice at the service earlier this year.A 10-year plan to overhaul the USPS, he said, the change was necessary to sustain billions of dollars in losses and put the agency on a path to profitability. and last Friday He said the increase in shipping rates was part of an effort to increase revenue.
The volume of single first-class mail, such as those with stamps, has declined 47 percent over the past 10 years, the USPS said Friday. Even with the latest increase, USPS says it will still be there. “The lowest mail postage rate in the industrial world” when it goes into effect Aug. 29. Overall, the USPS said postage prices would increase by nearly 7%.
But the on-time delivery rate for USPS has worsened in recent months, with 1 in 5 mail across the United States.to households and businesses in the first three months of 2021, asking consumers and businesses to pay more for underperforming services They risk losing their postal business further, said Paul Steidler, a senior at the Lexington Institute, a tank in Arlington, Va. and an expert at USPS.
“People are willing to pay more for the letter. But they want a guarantee, or at least a guarantee that they will deliver on time,” Steidler said.
He added that “To come out and say you’re asking for a nearly 7% price hike in that atmosphere. and in times of economic fragility I think it will do more harm than good.”
The increase in the price of first-class stamps and other services is part of “Reasonable pricing approach that allows us to remain competitive and offer the most affordable reliable postal service in the world,” DeJoy said in a statement.
Critics voiced concern about key elements of DeJoy’s 10-year plan, which included slower implementation of shipping standards and planned post office closures. Especially The plan slows USPS shipping standards for first-class mail to six days. Compared to the current three-day delivery for any destination within the continental United States
Some customers may complain of having to pay more for stamps and services when delivery times are slow. Increase the risk that postal customers will continue to move their business out of the USPS, Steidler added.