The U.S. Postal Service announced it is prepared to handle the 2025 holiday season, backed by nearly $20 billion in modernization investments over the past four years.
Holiday preparations are important for anyone carrying mail during the winter months but experts say it’s a mixed bag for this year. Industry forecasts expect about 2.3 billion total U.S. holiday parcel deliveries in late 2025, roughly 5% more than 2024, concentrated in the six weeks between Thanksgiving and Christmas. However, ShipMatrix analysts specifically forecast USPS holiday package volume will be flat year-over-year, while competitors FedEx and Amazon are expected to see growth of 5% to 8%.
Recent data indicate USPS package volume was flat to slightly down in early 2025, even as competitors have seen increases.
"The Postal Service plans throughout the year to deliver the nation's mail and packages during the high-volume holiday season and we are well prepared and ready to deliver for the American public," said Postmaster General and CEO David Steiner. "For the past several years, the Postal Service has been gaining market share in our package business, which reflects the strong value and excellent portfolio of the shipping options we provide."
USPS has invested in realigning its national postal network to meet modern consumer needs. The agency delivered 45% more packages per operating day than its competitors in December 2024, in addition to delivering more than 350 million mail pieces per operating day.
The Postal Service has also expanded its daily package processing capacity from 60 million to 88 million items by deploying more than 600 package sorters over the past five years, including 94 installed this year. The state-of-the-art machines have automated scanning capabilities that ensure tracking visibility as packages move through the postal system.
USPS said it has stabilized its workforce since 2020 through the conversion of nearly 232,000 precareer employees to full-time positions. This year, the agency plans to hire 14,000 temporary employees, down from 40,000 just a few years ago.
In July, USPS updated its service standards to expand turnaround service for processing and delivering mail and packages within the same region. The enhanced service now has a 2-day or 3-day standard, meaning local consumers and businesses can send holiday greetings more quickly and reliably within their region.
The agency opened new facilities in 2025 in Dallas, Phoenix and Johnson City, Tennessee, with buildings soon to open in Memphis, Tennessee; Birmingham, Alabama; Tampa, Florida; and San Antonio, Texas. Over the past four years, USPS has opened nine regional processing and distribution centers, 19 regional transfer hubs, 17 local processing centers and 133 sorting and delivery centers.
USPS has received nearly 29,000 new vehicles this year and deployed more than 24,000 on postal delivery routes. The agency expects to acquire a total of 106,480 new vehicles, including 66,000 zero-emission electric vehicles.
Los Angeles represents one of USPS's largest and busiest markets. The main Los Angeles Processing & Distribution Center on South Central Avenue, along with the Los Angeles International Service Center at LAX and dozens of postal facilities, collectively process millions of items weekly. In 2024, the Postal Service staged its ceremonial "billionth holiday mailpiece" delivery in Los Angeles.
The agency is hiring 119 seasonal positions in the Los Angeles area. A Los Angeles USPS official said these hires are intended to keep the network flexible and avoid the need for temporary annexes or contractor lines that plagued some regions in past years.
The Los Angeles facility has been upgraded with new sorting equipment, and the local fleet has received many of the new postal delivery vehicles. The Southern California Shipping and Processing Center at LAX helps funnel more packages into ground networks instead of air.
USPS emphasized that the current federal government shutdown will not interrupt its operations because the agency is self-funded through the sale of its products and services rather than tax dollars. Post offices in Los Angeles and nationwide remain open, and mail carriers continue daily deliveries.
However, indirect effects could emerge. On Oct. 7, the FAA reported no air traffic controllers were on duty at Hollywood Burbank Airport due to controller callouts amid the shutdown, leading to flight delays that could affect USPS shipments relying on those flights.
USPS offers several shipping options for the holidays, including USPS Ground Advantage with 2-5 business days delivery, Priority Mail with 2-3 business days and Priority Mail Express with 1-3 business days. Most shipments include $100 insurance and tracking.