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US Postal Service Ends Discounts For Shipping Consolidators

A U.S. Postal Service employee works outside as she makes deliveries in Northbrook, Ill., Monday, June 3, 2024. (AP Photo/Nam Y. Huh, File)

The U.S. Postal Service has announced the discontinuation of discounts previously offered to shipping consolidators like UPS and DHL. This decision, aimed at aiding the Postal Service in curbing losses, may result in higher costs for consumers as consolidators adjust their pricing strategies.

Consolidators play a significant role in the Postal Service's operations, handling approximately 2 billion packages annually, which accounts for about a quarter of the total parcel volume. The change is expected to enhance postal revenues and operational efficiencies while promoting the use of Postal Service services like Ground Advantage.

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