Japan Post raised postal rates starting on October 1st for the first time in 30 years. It cited a drop in postal service users as one reason behind the hikes. Another is rising logistics costs.
The cost of postcards rose to 85 yen, or about 60 cents. Postage for standard-size items weighing 50 grams or less went up to 110 yen, and the additional fee to send express mail weighing up to 250 grams was hiked to 300 yen, or about 2 dollars.
Rates for sending documents were also raised — Letter Pack Light envelopes went up to 430 yen, and Letter Pack Plus rose to 600 yen, or about 4 dollars.
Japan Post had reported a ballooning operating loss in its mail business for fiscal 2023. The massive shortfall came as the use of domestic mail declined.
Japan Post’s operating loss grew to almost 90 billion yen, or about 610 million dollars, for the year that ended in March.
The firm expects to restore profitability in its postal business in fiscal 2025, but it foresees an operating loss again for 2026.
The question now is how Japan Post can make its postal business more efficient while maintaining low rates for mail services throughout the country.