If you thought the 5.9% general rate increases for UPS and FedEx were steep, you’re not going to like what’s happening at the United States Postal Service.

With USPS’s 2026 rate increase, the delivery service is working to rectify its $9 billion loss for the 2025 fiscal year, which ended on September 30. New Postmaster General David Steiner said, "To correct our financial imbalances, we must explore new revenue opportunities and public policy changes to improve our business model. Most importantly, we must operate more efficiently and compete more effectively to best perform our public service mission." Those “revenue opportunities” come at the tune of increases up to 7.8%.

Today, we’re discussing the changes at USPS and whether you can negotiate these rates to achieve lower shipping costs in 2026.

What’s Changing for USPS in 2026?

On November 14, USPS announced that its Board of Governors approved a set of rate increases, which will take effect on January 18, 2026. The price increases include:

●       Priority Mail service: 6.6%
●       Priority Mail Express service: 5.1%
●       USPS Ground Advantage: 7.8%
●       Parcel Select: 6%

These increases are hot on the heels of USPS’s July 13 increases, which raised Priority Mail’s domestic service by 6.3%, USPS Ground Advantage by 7.1%, and Parcel Select by 7.6%. Priority Mail Express rates did not increase at that time.

The press release announcing the 2026 rate hikes states, “The governors believe these new rates will keep the Postal Service competitive while providing the organization with needed revenue.” This is all part of the USPS’s 10-year plan to achieve financial sustainability and service excellence.

What’s Not Changing for USPS in 2026?

While shipping services are adjusted for current market conditions, mail services are set by the consumer price index. Prices for mailing services will not change in January, so you can keep sending First-Class mail at the same rates.

Can You Negotiate with USPS?

There are a few solutions that enable shippers to save when shipping with the USPS. High-volume shippers can consider a Negotiated Service Agreement (NSA), which offers customized shipping solutions and mailing incentives. Businesses that don’t qualify for an NSA may be eligible for lower pricing through Click-N-Ship commercial pricing. Shippers sending occasional parcels can benefit from shipping through third-party shippers, such as Stamps.com, which qualify for discounted rates from USPS due to the bulk volume of customers.

Looking for an easier way to save money? If you already have a contract with FedEx or UPS, renegotiating through ShipRx can help you save big— even as prices rise across the board.

USPS operated at a $9.5 billion loss in 2024 and a $9 billion loss in 2025. They aim to decrease their losses through rate hikes in 2026, but you have a choice in carrier. Use that choice wisely and choose a carrier that will negotiate lower rates in recognition of your loyalty.

Book your free ShipRx savings analysis today, and start saving!