USPS No Longer Offers Lower Rates for Package Consolidators

The U.S. Postal Service is changing its contract approach with package consolidator companies, no longer offering them discounted rates. 

Contracts with Negotiated Service Agreement (NSA) discounts “no longer reflect operational and financial realities in today’s market,” according to a Sept. 11 news release. Previously, these discounts were given when consolidators’ packages entered the USPS ecosystem at Post Office Delivery Units. 

“It’s challenging for us to justify entering into NSAs that incentivize bypassing our transportation and processing network, while leaving us responsible for managing the final mile, which is often the most resource-intensive part of the delivery process,” stated Postmaster General Louis DeJoy. “To continue this practice is not consistent with our business strategy to create an efficient network and grow our own end-to-end ground package product (USPS Ground Advantage) for shipping customers.” 

DeJoy also noted that several new consolidator contracts have already been approved and “are operating effectively.”