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Postal Costs UK to USA July 2020

  • Last year, the UPU agreed to allow the US to set terminal dues/prices themselves from the 1st of July. This met the US administration’s stated objective – to increase how much they charge other countries for delivery. It averted their threat to leave the global network. It will see a significant increase of over 100% in the rates Royal Mail pay for last mile delivery in the US from the 1st of July.

    Royal Mail say that they will have to pass on these costs and will not profit in doing so.

  • Royal Mail have seen 95% less air passenger flights as a result of Covid-191 and are having to use air freight instead. This is considerably more expensive. It has led to a five-fold increase in conveyance costs to the US following the outbreak of Covid-19. As a business, Royal Mail say that they have absorbed these costs to date. But, from the 1st of July, they are going to recover their best estimate of future conveyance costs in this financial year.

    Royal Mail say that they are closely monitoring the cost of conveyance and may reduce prices accordingly in future.