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USPS To Slow Delivery for First Class Package Service

August 1st, 2021

The U.S. Postal Service will be changing delivery times for First Class Package Service in the coming months. The proposed changes are expected to create longer delivery times for parcels traveling to farther distances (Shipping Zones 6, 7 and 8).

First Class Package Service is an ounce-based shipping service with the maximum weight of 15.999 ounces. The service, which is hugely popular with apparel, jewelry and cosmetics retailers, provides package delivery nationwide within 1 to 4 days including tracking for a maximum price of $5.98.

The suggested service change will remove air transport for First Class Package Service delivery to help lower costs and find transportation efficiencies. Currently, approximately 31% of First Class Package Service is transported via air carriers.

In fiscal year 2020, the USPS shipped 1.8 billion packages via First Class Package Service. Of that volume, the proposal would impact:

• 32% of the total First Class Package Service parcels shipped in FY 2020 (primarily Zones 6, 7 and 8) would see additional delivery time, moving from a three-day service standard to a four or five-day standard.
• 64% of the total First Class Package Service volume would not be impacted at all.
• 4% of the total First Class Package Service volume would see a service upgrade from three-day to two-day service.

First Class Package Service delivery volume has increased in recent years due to its low cost and faster delivery times being very appealing to online retailers:

First Class Package Service Delivery Volume:

PeriodPackages ShippedYOY Change
FY 20181,279,000,000
FY 20191,398,000,0009% increase
FY 20201,848,000,00032% increase
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