USPS seeks rate hike on commercial packages amid spike in deliveries
Kevin Kosar, the vice president of research and partnerships for the R Street Institute, noted that the package price increase reflects the fact that more of USPS’ overhead costs are now tied to its package business.
The rate hikes, he added, are modest compared to the president’s “inherently unreasonable” proposal to quadruple package prices.
“It will be interesting to see what effect the increases have on USPS’s parcel volume,” Kosar said. “Will volume decline at all? It might not be a bad thing for the USPS to have fewer parcels to handle. The agency gives the appearance that it is struggling to handle the current crush of packages.”
