Postal, Paper & Logistics update: May 2026

Deputy PMG Doug Tulino, who said that ongoing efforts to improve performance relied on a simple formula: service, cost, production and culture.

Network Solutions and Performance Excellence VP Greg White, who reviewed key components of the agency’s ongoing network transformation.

Chief Customer and Marketing Officer and Executive VP Steve Monteith, who explained how the agency is evolving to help its customers in all dimensions of their business.

Executive Director of Product Solutions Margaret Pepe, who provided an update on the USPS’s Mail Reimagined effort, including new promotions designed to attract new mailers.

Strategic Sales VP Juan Nadal, who highlighted several upcoming initiatives including new returns partnerships and same-day solutions built around the USPS’s Sorting and Delivery Center network.

On May 11, the USPS filed its rate case for proposed Competitive category price changes scheduled to take effect July 12, pending Postal Regulatory Commission (PRC) review. The changes requested include elimination of ounce-based rate differentiation for published Commercial USPS Ground Advantage prices, which will not impact customers that have negotiated commercial rates for USPS Ground Advantage, and a Competitive P.O. Box price increase of 3%. The USPS Industry Alert detailing the changes requested can be found here.

Fiona Machado became Acting Vice President, Pricing and Costing on May 1, succeeding Sharon Owens, who retired.

While overall freight volumes are moderating, the upcoming produce season is expected to introduce predictable seasonal tightening, particularly across regions of the U.S. where agricultural harvest activity drives increased demand for refrigerated and over-the-road capacity.

As we noted last month, the Commercial Vehicle Safety Alliance (CVSA) International Roadcheck in mid-May — commonly referred to as DOT Blitz Week — typically adds to these seasonal dynamics. We don’t yet have all the data from this year’s Roadcheck, which took place the week of May 12, but initial reports revealed a worrisome trend: Day 2 out-of-service (OOS) orders nearly doubled from 2025’s full-event 18.1% rate, FreightWaves reports, adding that the increase reflected the condition of trucks on the road rather than increased inspection activity alone.

OOS directives refer to a temporary or permanent violation status for commercial vehicles or drivers and effectively prohibit vehicle operation. Increased OOS orders could contribute to additional market tightness and operational disruption. Quad will continue to report on this situation.

Quad’s carrier network sourcing requirements and onboarding standards continue to position us well during this period of heightened regulatory scrutiny. By maintaining strict compliance expectations for our carrier partners — including DOT safety adherence, insurance verification, operational monitoring and documentation standards — we can reduce the likelihood of service interruptions and minimize disruption risk for our clients during enforcement-heavy periods.

Fuel costs remain a persistent pressure point across the transportation sector. According to the U.S. Energy Information Administration (EIA), diesel pricing remains elevated. Higher diesel costs continue to impact carrier operating expenses, fuel surcharge structures and overall transportation pricing throughout the market.

Looking ahead, while freight demand may soften in certain sectors during the quieter summer months, factors such as produce season activity, ongoing regulatory enforcement initiatives and sustained fuel volatility are expected to create localized capacity constraints and upward pressure on transportation costs.