January 7, 2025
Throughout the past year, the Postal Service has been implementing a new strategic approach with respect to its contracts with package consolidator companies – ones that consolidate large package volumes at local delivery units and use our Parcel Select offering — including negotiating new agreements.

Prior agreements failed to reflect operational and financial realities, the evolving postal network, or the enhancements to our portfolio of product offerings.

As a result of our new approach, some businesses negotiated new agreements with us, and some have not. We concluded our negotiations in December 2024. Our Parcel Select product still exists and any business can use it now at our published rates.

Throughout this process we have been transparent – both publicly and privately – with business partners, customers and the shipping industry about our intent to either negotiate new agreements or to let prior disadvantageous agreements expire. Communications to affected businesses began in the Spring of 2024 with multiple, follow-on public announcements made through the end of the year. How these aggregating businesses have communicated about these developments to their stakeholders is beyond the control or responsibility of the Postal Service.

As the Postal Service continues its strategic evolution, we remain committed to fostering productive relationships across the shipping industry creating a framework that works not just for us but for our customers. We will continue to communicate openly and transparently as we move forward.

Industry Alert – January 7, 2025

Source: PostalPro