Skip to main content
Acceptance Mark

VT Postal Customer Council
8 New England Drive
Essex Junction, VT 05452-9996

MAILERS HIT WITH MASSIVE SECOND RATE HIKE IN 2021: Postage To Rise 6.8% For First Class And Marketing Mail in August

WASHINGTON, DC — The United States Postal Service filed notice on May 28 with the Postal Regulatory Commission (PRC) requesting price changes to take effect Aug. 29, 2021 that are in accordance with approvals provided by the PRC last year.

The rate hikes are the largest in a decade. Until the PRC revamped the ratesetting system last year, the USPS was limited to rate hikes based on the rate of inflation. The proposed price changes would raise overall Market Dominant product and service prices by approximately 6.9 percent. First-Class Mail prices would increase by 6.8 percent.

Click for New Postage Rates Effective August 29, 2021

Click for USPS Rate Hike Filing With PRC

The Postal Accountability and Enhancement Act (PAEA) of 2006 capped price increases for mailing services at the Consumer Price Index (CPI). The PAEA also required the PRC to evaluate the price cap system 10 years after the date of enactment and to modify or replace the system if it was not meeting the objectives of the law. The PRC recognized the price cap was a barrier to the Postal Service’s financial sustainability in December 2017, resulting in cumulative lost gross revenue opportunity of $55 billion. In May, the Postal Service reported a net loss of $82 million for the second quarter of 2021.

In November 2020, the PRC announced new rules on market-dominant prices, allowing above-CPI price increases on the basis of certain factors and allowing the Postal Service more flexibility in establishing prices for mailing services.

“November’s PRC ruling allows the Postal Service higher rate authority in establishing prices for mailing services,” said Chief Financial Officer and Executive Vice President Joseph Corbett. “Aligning our prices for market-dominant products will allow us to grow revenue and help achieve financial sustainability to fulfill our universal service mission.”

The new rates will increase as follows:

May 2021

The electronic newsletter from the USPS Headquarters - Industry Engagement & Outreach team - summarizing recent USPS news and developments

Priority Mail Express - Single 6 p.m. delivery guarantee begins May 23

USPS is reminding employees that the new, streamlined service for Priority Mail Express was effective Sunday, May 23. As of that date, there will be just one commitment time for all Priority Mail Express deliveries nationwide: 6 p.m. The 10:30 a.m., noon and 3:30 p.m. options will cease.

There will be no change to Priority Mail Express pricing or one- and two-day service standards. Priority Mail Express packaging will remain free of charge and Priority Mail Express Flat Rate Envelopes still will be available. In addition, Priority Mail Express transportation and cutoff times as well as processing and delivery operations will remain the same.

Customers should be informed about the changes to the guaranteed delivery times.

If a customer uses an older Label 11-B, 11-F, 11-M or 11-HFPU after May 23, none of the delivery commitments will be honored. Customers should complete a new label showing only the 6 p.m. delivery commitment.

If a customer chooses not to complete a new label, the package will be accepted but retail associates will inform the customer that USPS only offers the single 6 p.m. delivery commitment time. Old label stock at retail units should be recycled according to each district’s procedures. 4

Although some businesses may close before 6 p.m., carrier routes are designed to reach businesses during their working hours and Priority Mail Express packages will continue to be delivered throughout the day.

Retail associates should make Priority Mail Express items available as soon as possible for customers with PO Boxes at stations that close before 6 p.m.

Source: USPS News Link Washington, DC

2021 USPS Holiday closures

Friday, January 1                                       New Year’s Day

Monday, January 18                                  Martin Luther King Jr. birthday

Monday, February 15                                Presidents’ Day

Monday, May 31                                         Memorial Day

Monday, July 5*                                          Independence Day

Monday, September 6                                 Labor Day

Monday, October 11                                   Columbus Day

Thursday, November 11                            Veterans Day

Thursday, November 25                            Thanksgiving Day

Saturday, December 25**                          Christmas Day

* July 4, 2021 (the legal public holiday for Independence Day), falls on a Sunday. For most Federal employees, Monday, July 5, will be treated as a holiday for pay and leave purposes.
** December 25, 2021 (the legal public holiday for Christmas Day), falls on a Saturday. For most Federal employees, Friday, December 24, will be treated as a holiday for pay and leave purposes.

There is no regular mail delivery/pickup or retail services on Postal holidays
You cannot schedule Hold Mail or Redelivery to begin or end on the above holiday dates
Be sure to check with your local BME & Transportation offices regarding clerk coverage and mail pick-up in your area.


Join the VT PCC today!  Be the first to receive notice of our events and workshops by joining our email list!  Membership is FREE.  Just click on the link and become a member today. 

Interested in sponsoring the VT PCC to enable us to provide more services like this website, informational seminars, educational workshops, professional certifications and networking opportunities?  Consider becoming a sponsor of the VTPCC.  Email us with your information and we will contact you.  All sponsoring organizations at the $100 level or higher will be thanked on this website with a link to their company website.  Mention will also be made at all of our events.

Thanks for visiting our web site!

The VT PCC is excited to offer this web site as a service to all mailers.  Please contact us if you have any comments or suggestions regarding the site.  Are you a website guru that would like to help us design a functional and high impact site?  Click on the "Contact Us" sidebar - we would love to have you on board!