Shippers using the US Postal Service (USPS) face a potential 300% increase in costs with the service set to leave the Universal Postal Union (UPU). Barring an eleventh-hour agreement, USPS’s membership to the union will terminate on 17 October ending a 144-year involvement, according to Freightwaves. The international body governs the exchange of mail and postal parcels, with rates
kept artificially low for emerging markets. But they are now expected to normalise for those exporting goods into the US. And over the short-term, at least, US-based international shippers will also see a spike in prices with USPS all but certain to cancel negotiated service agreements covering international shipments. All of which comes in the run up to peak season for e-commerce.