US Postal Service squeeze on shipping consolidators could raise consumer costs

Associated Press

The U.S. Postal Service is ending discounts that shipping consolidators such as UPS and DHL use to get packages to the nation’s doorsteps, in a move meant to help the Postal Service slow losses but that could see the higher costs passed on to consumers. The changes announced Wednesday affect nearly 2 billion packages each year that consolidators send through the Postal Service each year, or roughly a quarter of its total parcel volume. Postmaster General Louis DeJoy told The Associated Press that the move will bring in more revenue and boost efficiency while encouraging shippers to use the Postal Service’s entire network.