The United States Postal Service (USPS) has kicked off its busiest period of the year with a staggering volume, having already accepted nearly 2.2 billion pieces of holiday mail in the first week of the season. This surge comes as the federal agency implements temporary price increases and continues a major modernisation drive to handle the annual deluge of gifts and cards.
Massive Scale and Seasonal Hiring Drive
To manage the immense influx, the USPS has activated hundreds of facilities equipped with new, high-tech sorting machines, bringing the national total to 614 machines. The organisation's processing capacity has been significantly expanded to approximately 88 million packages per day, a notable jump from 60 million daily during the previous year's holiday rush.
Supporting this operation, the Postal Service plans to bring on an additional 14,000 temporary seasonal workers to bolster its full-time staff of over 533,000 employees. This investment in manpower and technology is part of the broader "Delivering for America" ten-year strategic plan, unveiled in March 2021, which commits $40 billion to upgrading infrastructure and workforce capabilities.
Temporary Price Hikes and the Push for Sustainability
Despite promoting itself as the most affordable shipping option, the USPS has introduced new "temporary" rate increases for key services including Priority Mail Express, Priority Mail, USPS Ground Advantage, and Parcel Select. These changes, which took effect in early October and will last until 18 January, are designed to cover extra handling costs during the peak period.
Depending on the service, weight, and destination, commercial customers now face a 40-cent increase, raising some costs to $16, while retail consumers see a 30-cent rise to around $13. The Postal Service stated these adjustments align with competitive practices and are crucial for its long-term financial health.
The agency's strategic focus is firmly on achieving financial sustainability, aiming to avoid projected losses of $160 billion by 2030. This follows a controllable loss of $1.8 billion for the 2024 fiscal year, an improvement from over $2.2 billion the year before.
Political Context and Future Outlook
The USPS's future has been a topic of political debate. In December 2024, then-President-elect Donald Trump remarked to reporters that privatising the constitutionally enshrined service was "not the worst idea I’ve ever heard," floating the possibility ahead of his return to office.
For now, the Postal Service is concentrating on the present season, assuring customers that, on average, packages will be delivered in under three days. As millions more parcels are expected to flow through its network, the success of this holiday season will be a critical test of its ongoing transformation and capacity to remain a vital national service.
