Alaskans could pay significantly more next year for mailing packages to, from and within the state with two price increases planned by the U.S. Postal Service.
In an effort to reduce its projected $160 billion loss over the next 10 years, the Postal Service announced it is planning a 5.7% average nationwide price hike in 2024 for some shipping options. Customers using USPS Ground Advantage for shipping within Alaska would see a 9.2% average increase.
The price increases are set to take effect Jan. 21, but some Alaska mailing rates from Outside could rise again starting in July.
USPS uses shipping zones to measure the distance a package travels for certain shipping options. The greater the distance, the higher the price.
Last month, the Postal Service announced it is planning to establish a new postal Zone 10, with higher rates, which would encompass Alaska, Hawaii and U.S. territories such as Puerto Rico.
The new zone and its rates are subject to approval by the federal Postal Regulatory Commission
Mail sent to Alaska would be affected by the higher Zone 10 prices. Mail sent from Alaska to the Lower 48 would not. Mail sent from Alaska to Hawaii and U.S. territories would be affected.
The higher prices would apply to Priority Mail Express, Priority Mail and USPS Ground Advantage — but not the popular flat-rate shipping service where customers use standard-size boxes provided by the postal service.
Most destinations that Alaskans receive mail from in the Lower 48 currently fall under Zone 8 pricing. The Postal Service stated that Zone 10 prices are intended to be 5% higher than Zone 8 prices after January’s rate increase, according to a notice filed online.
A package that weighs half a pound and is mailed from New York City to Alaska using Priority Mail Express would currently fall under Zone 8 prices and cost $43.70. After the January price hike and the establishment of Zone 10, the same package would cost $48.60 — an 11% increase.
Packages that travel shorter distances to Alaska from the Lower 48 would see higher rate increases. A package that weighs half a pound and is sent from Seattle to Anchorage with Priority Mail Express would go from Zone 6 to Zone 10 pricing and increase from $38.15 today to $48.60 in July — a 27% price hike.
In an online notice, USPS stated that the new postal Zone 10 would align the Postal Service with its competitors “who currently have separate zones for offshore destinations.”
“The Postal Service recognizes the possibility that customers or representatives of certain offshore locations may voice concerns regarding the impact of price increases from the establishment of Zone 10 pricing,” the notices states. “However, the Postal Service will continue to offer the lowest published prices in the industry for these destinations.”
James Boxrud, a spokesperson for USPS, said that the plan to establish a new offshore postal zone is part of the Postal Service’s 10-year goal to reverse projected multibillion-dollar losses.
Alaska’s congressional delegation is set to join with representatives from Hawaii and U.S. territories to request that the Postal Regulatory Commission reject the establishment of a new postal zone.
“This proposed increase in rates for Alaska and other non-contiguous states and territories is outrageous. No state, including Alaska, should be punished by our own federal government because of geography,” Alaska Sen. Dan Sullivan said in a prepared statement. “Alaskans … are more reliant on the USPS for basic goods and services than other Americans.”
Comments on the plan to establish a new postal zone for Alaska, Hawaii and U.S. territories can be submitted through the Postal Regulatory Commission website at prc.gov. Click on the “file online” tab under the “how to participate” dropdown menu. Click on “access E-filing,” create an account and file a comment on Docket No. CP2024-72.
The deadline to submit a comment is Jan. 4.
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