USPS Proposes 2027 Shipping Increases, Including 11% Fuel Surcharge

The U.S. Postal Service (USPS) has filed a notice with the Postal Regulatory Commission (PRC) proposing new prices and fees for domestic and international shipping services. The changes are scheduled to take effect on January 17, 2027, but remain subject to regulatory review. USPS says its Board of Governors approved the proposal this week as part of a modernization plan intended to support the agency’s financial sustainability while keeping its services competitive. The proposal does not change stamp prices: USPS says First-Class Mail remains “one of the best mailing bargains in the world.”

For domestic shipments, USPS proposes an average price increase of 5.9% across Priority Mail, Priority Mail Express, USPS Ground Advantage, and Parcel Select. The proposal also changes the treatment of transportation-related costs. USPS would convert the 8% transportation-related price change implemented in April 2026 into a permanent 8% fuel surcharge, then add 3 percentage points in response to further fuel-price increases, bringing the total surcharge to 11%. USPS says the surcharge will not apply to international products at this time and will be reevaluated in July 2027 using fuel prices from the first half of that year.

International shipping customers would face proposed average increases of 7.9% for Priority Mail Express International, Priority Mail International, First-Class Package International Service, and International Priority Airmail. USPS also plans to adjust country rate groups and group assignments. A new optional Outbound Proof of Delivery service is proposed for Priority Mail International, while Delivered Duty Paid (DDP) service would expand to International Priority Airmail. The expanded DDP option would allow outbound customers to pay duties when mailing or at a later time, a planning consideration for organizations managing international delivery costs and processes.

The proposal also includes changes to some competitive special services and new fees intended to better align USPS pricing with the industry. Services identified include address enhancement services, premium forwarding services, and several competitive ancillary services; competitive PO Box prices are not changing in January. USPS says mailing-services price increases are based on the consumer price index, while shipping-services prices are primarily adjusted according to market conditions. For federal agencies and contractors, the announcement is a budgeting signal rather than a final rate schedule: shipping forecasts and vendor or program cost assumptions should account for the proposed effective date, but remain conditional on PRC review and any resulting changes.

• Effective date: Proposed changes are scheduled for January 17, 2027, pending PRC review.
• Domestic services: USPS proposes an average 5.9% increase for Priority Mail, Priority Mail Express, USPS Ground Advantage, and Parcel Select.
• Fuel surcharge: The current 8% transportation-related price change would become a permanent 8% surcharge, with an additional 3 percentage points for a proposed 11% total.
• Surcharge review: USPS says the surcharge does not apply to international products at this time and will be reevaluated in July 2027 based on first-half fuel prices.
• International services: Proposed average increases are 7.9% for Priority Mail Express International, Priority Mail International, First-Class Package International Service, and International Priority Airmail.
• International options: USPS proposes optional Outbound Proof of Delivery for Priority Mail International and an expansion of Delivered Duty Paid service to International Priority Airmail.
• Duty payments: The expanded DDP service would let outbound customers pay duties when mailing or at a later time; organizations should evaluate fit with delivery workflows and cost planning.
• Other fees: USPS plans changes to certain competitive special and ancillary services, including address enhancement and premium forwarding services; competitive PO Box prices will not change in January.
• Budgeting action: Agencies and contractors that use USPS should incorporate the proposed rates into 2027 shipping forecasts while tracking the PRC review before treating them as final.
• Pricing context: USPS says shipping prices are primarily adjusted according to market conditions and positions the changes within its modernization and financial-sustainability efforts; stamp prices remain unchanged.