In brief: Mailers face a price increase for Market Dominant mail products in July — an average of up to 10% for some, including the impact of USPS promotions changes — and an immediate 8% time-limited price hike for retail and commercial Competitive mail products. A variety of issues are making paper markets unpredictable. Elevated diesel prices and other cost pressures are buffeting the freight market.

Built on our roots as a printer, mail industry partner and logistics leader, Quad is a marketing experience (MX) company focused on delivering streamlined solutions at scale to our clients. As the largest USPS customer, we are uniquely positioned to provide clients with best practices and insights on the latest postal, paper and logistics topics. If you have any questions or concerns during these challenging times for our industry, contact your Quad representative. We’ll tap our in-house experts to investigate and get you the answers you need.

USPS files details of July price increases

On April 9, the USPS filed a Market Dominant price increase with the Postal Regulatory Commission (PRC) that would take effect on July 12. The overall price increase is approximately 4.8%, but the specific amount for each class varies based on PRC rules and regulations. Quad anticipates an average increase of up to 10% for some clients, which includes the impact of USPS promotions changes.

Here are the average proposed increases by class:
First-Class 5.10%
Periodicals 6.80%
Marketing Mail 5.70 to 7.70%
Bound Printed Matter (BPM) 4.80%

As a reminder, due to a recent PRC ruling, the USPS is only allowed to change Market Dominant products (First-Class, Periodicals, Marketing Mail and BPM) once a year.

If you’re interested in additional information about the rate changes and/or details of the 2027 USPS promotions calendar, please contact your Quad sales representative or email the Quad Postal Solutions team at PostalSolutionsAdminandService@quad.com.

Also, Quad held a webinar about the price changes on Tuesday, April 28. If you missed it, please contact your Quad sales representative or email the Quad Postal Solutions team at the address above for a link to the recording.

USPS files time-limited transportation-related rate increase for Competitive products

Citing rising transportation costs, the USPS filed notice with the PRC that it would impose a time-limited price increase on retail and commercial domestic Competitive products from April 26, 2026, through Jan. 17, 2027. The Board of Governors approved the 8% increase in late March. It will affect base postage prices on the following retail and commercial domestic Competitive products: Priority Mail Express, Priority Mail, USPS Ground Advantage and Parcel Select. Final approval by the PRC is expected.

In announcing the change, the USPS called the increase “a necessary bridge to a permanent mechanism to reflect market conditions in prices for Competitive products that can support the Postal Service’s ability to achieve the universal service obligation in a more financially sustainable manner going forward.”

The USPS noted that its competitors have already enacted surcharges to cover higher transportation costs.

Amazon and USPS reach new delivery deal

Amazon signed a new deal to have the USPS provide last-mile delivery services for packages, FreightWaves reports. It is similar to the previous agreement Amazon had with the agency, but at a reduced volume of about 1 billion parcels per year, a 20% reduction.

Amazon’s previous agreement with the USPS had delivered $6 billion in revenue to the agency, around 7.5% of total revenue. The USPS has been soliciting other bids for its last-mile delivery services.

In the past, Amazon has relied on the USPS in particular for delivery to rural areas, but the online retailer has been investing heavily to build out its own rural delivery capabilities. Amazon outpaced the USPS as the largest domestic package carrier overall in 2025.

Miscellaneous updates

  • On April 21, the USPS held a webinar to present information about its July Market Dominant price change filing. The webinar can be found here.

  • The USPS resumed mail acceptance for the United Arab Emirates effective April 10, for Lebanon effective April 2 and for Pakistan effective March 27.

USPS delivery performance

Here are the average in-home curves for our Marketing Mail clients who tracked their mail with Quad’s IMsight application over the specified weeks.

March was calmer than earlier in the year, with no major weather events. Overall, mail moved according to USPS Service Standard.

We are entering the period of lower mail volume across postal facilities and expect processing to proceed without delays for the next few months.

Week of 3/9 Week of 3/16 Week of 3/23 Week of 3/30
Early 18% 20% 2% 31%
Day 1 46% 46% 50% 55%
Day 2 71% 67% 74% 77%
Day 3 85% 83% 88% 88%
Day 4 91% 93% 95% 94%
1 Day late 95% 97% 97% 96%

Three Sectional Center Facilities (SCFs) struggled to hit 70% in-home on average by USPS Service Standards for Flat mail.

Flats:

Entry type City Percent in-home by
Service Standard
SCF Hazelwood, Mo. 69%
SCF Kansas City, Mo. 65%
SCF Queens, N.Y. 68%

One facility for Letter mail also saw delays:

Letters

Entry type City Percent in-home by
Service Standard
SCF Memphis, Tenn. 60%

USPS volume

Mail volume for the week ended
April 11, compared to last year
Total Mail Volume   Down
2.3%
 
Packages  Down
5.7%
 
Single Piece  Down
14.8%
 
 
Presort First Class  Down
1.4%
 
Marketing Mail  Down
1.0%
 
Periodicals  Down
4.8%
 
 
Mail volume for the week ended
April 4, compared to last year
Total Mail Volume   Up
2.1%
Packages  Up
1.9%
 
Single Piece  Down
9.4%
 
 
Presort First Class  Down
12.7%
 
Marketing Mail  Up
1.6%
 
Periodicals  Down
26.5%
 
Mail volume for the week ended
March 28, compared to last year
Total Mail Volume   Down
3.3%
 
Packages  Down
1.3% 
Single Piece  Down
7.4%
 
Presort First Class  Down
0.9%
 
Marketing Mail  Down
3.9%
 
Periodicals  Up
28.1%
 
Mail volume for the week ended
March 21, compared to last year
Total Mail Volume   Down
0.2%
 
Packages  Down
1.3%
 
Single Piece  Down
11.1%
 
 
Presort First Class  Down
1.0%
 
Marketing Mail  Up
0.4%
 
Periodicals  Down
22.3%
 
Mail volume for the week ended
March 14, compared to last year
Total Mail Volume   Down
1.6%
 
Packages  Down
2.4%
 
Single Piece  Down
10.1%
 
 
Presort First Class  Down
3.9%
 
Marketing Mail  Up
3.4%
 
Periodicals  Down
25.5%
 

Paper market

Paper markets are unpredictable right now for a number of reasons:

  • Rising oil prices have been driving up overall costs.

  • Tariffs continue to impact trade — especially imports into the U.S.

  • Paper companies are closing mills or converting paper machines to other grades with higher demand potential.

  • Paper prices have increased this year for several grades, including coated freesheet, uncoated freesheet, newsprint, directory and high-brightness uncoated groundwood grades. We are now seeing further price increases announced due to market tightness for some grades, along with fuel/energy surcharges caused by the war in Iran.

  • Order lead times with the mills have extended further out for most grades of paper.

Logistics

Quad is following several developments in the transportation markets:

  • Diesel prices continued their upward trajectory through mid-April before easing later in the month. Fuel surcharges remain elevated, adding pressure across the freight market. Quad expects continued cost volatility and is closely tracking how geopolitical disruptions and seasonal demand patterns may further influence price dynamics.

  • DOT Blitz Week, the trucking industry’s name for the Commercial Vehicle Safety Alliance (CVSA) International Roadcheck, is scheduled for May 12–14. As always, this annual enforcement and educational campaign will occur across a 72-hour period in the U.S., Canada and Mexico with the goal of targeting unsafe driving by passenger and commercial vehicle drivers. More information about this year’s event is available here.

    DOT Blitz Week is a short term disruptor to capacity and transit times, and Quad is preparing for it. Heightened inspections and weigh station activity often lead to driver delays, out of service violations or reduced participation, which tightens capacity and pushes rates upward.

  • A U.S. House of Representatives bill aimed at tightening the rules for obtaining and maintaining a Commercial Driver’s License (CDL) is another development Quad is closely monitoring. Known as Dalilah’s Law, the legislation moved onto the House floor after being passed by the House Transportation and Infrastructure Committee last month. The bill focuses on improving safety standards and addressing inconsistencies in CDL issuance, particularly for non-domiciled or foreign drivers. Key provisions include stricter immigration status verification and mandatory English-language proficiency. This law is separate from rules for non-domiciled CDLs issued by the Federal Motor Carrier Safety Administration (FMCSA) that went into effect in March, which were already putting pressure on the availability of truck drivers.

    While the House bill’s changes could strengthen safety and regulatory compliance, Quad is evaluating the potential downstream impact on driver availability. A reduction in eligible drivers could create additional labor constraints, requiring adjustments in hiring strategies and operational planning. The bill also introduces stricter enforcement mechanisms, including potential federal funding impacts for non-compliant states, signaling broader industry-wide implications.

As always, your Quad representative will work diligently to find you the lowest rates with the most efficient transportation available.

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