USPS to Unilaterally Terminate Discounted Account Services for Major Shippers, Shaking Logistics Industry

WASHINGTON, D.C. — The United States Postal Service (USPS) has notified multiple holders of discounted shipping accounts that it will unilaterally end their agreements, effectively cutting off access to reduced-rate services widely used by e-commerce retailers, logistics providers, and high-volume shippers.

The move, which caught many industry players by surprise, signals a significant shift in USPS’s strategy as it grapples with financial pressures and evolving operational priorities. For decades, discounted accounts have helped businesses manage shipping costs through negotiated rates, particularly for bulk parcels and commercial mail.


 

In formal notices dispatched to affected organizations, USPS cited “structural reforms to our pricing model” and “the need to align services with broader financial sustainability goals” as reasons for the termination. The agency did not specify whether new discount programs would be introduced in the future.

Logistics experts warn that the decision could disrupt supply chains and increase costs for thousands of companies reliant on USPS discounts for last-mile delivery, especially in rural areas where alternative carriers are limited.

“This is a major blow to small and mid-sized businesses that depend on USPS discounts to remain competitive,” said Laura Meeks, a supply chain analyst with Kantan Group. “We should expect downstream effects on consumer prices, particularly in e-commerce.”

Some industry observers suggest the move may be linked to USPS’s ongoing efforts to reduce losses under its universal service obligation, which requires it to deliver to all addresses nationwide despite inconsistent revenue.

Representatives from several logistics companies have expressed concern over the lack of negotiation or transition period. “We were given notice that our discount account will be canceled in 30 days—no dialogue, no options,” said one shipper who requested anonymity. “This will directly increase our operating costs by at least 10%.”

USPS has not publicly released a list of affected accounts or detailed criteria for the terminations. The agency has stated that current negotiated service agreements (NSAs) with larger corporate partners remain unchanged.

The news has sparked calls for further clarification from industry groups such as the Parcel Shippers Association and the National Retail Federation, which are seeking urgent meetings with USPS leadership.

As the logistics sector adapts to rising transport costs and capacity constraints, the removal of USPS discounts could accelerate the shift toward regional carriers and alternative delivery models—though these options may not be feasible for all shippers.

Updates are expected in the coming weeks as USPS faces growing pressure from stakeholders to reconsider or phase out the changes gradually.