Major Changes to UPS-USPS Package Delivery Services After SurePost Contract Ends

The United Parcel Service (UPS) and the United States Postal Service (USPS) have officially ended their long-standing partnership on the SurePost program. This change, effective from January 2025, marks the conclusion of a contract that allowed USPS to handle the final-mile delivery for UPS packages, particularly to P.O. boxes, Army posts, and Navy fleets.

Here’s what you need to know about how this development will impact deliveries, costs, and service options.

What is SurePost, and Why is it Ending?

SurePost is an economy delivery service designed for non-urgent shipments, often weighing under 10 pounds. It allowed UPS to use USPS for the “last mile” delivery to areas like rural locations, P.O. boxes, and military addresses.

The program’s expiration was confirmed by the International Brotherhood of Teamsters, which represents UPS workers. According to industry sources, the shift reflects UPS’s focus on increasing its own delivery network efficiency, even for these hard-to-reach destinations.

What Does This Mean for Your Packages?

The end of the SurePost partnership brings key changes to how packages are delivered:

• Delivery Restrictions: UPS will no longer deliver packages to P.O. boxes, Army Post Office (APO), or Fleet Post Office (FPO) addresses. Customers will need to provide valid street addresses for delivery.
• Delivery Speed: UPS packages may arrive faster for some customers. By handling the full transit process, UPS has reduced delivery time from 2–7 days to 2–6 days.

How Will Costs Be Affected?

The SurePost changes come with updated pricing structures:

• UPS introduced new surcharges on January 13, 2025, including:
  • 10% increase for packages under 9 pounds.
  • 6–7% increase for packages between 10–70 pounds.
  • 62–69% surcharge for extended delivery to rural and low-density areas.

These increases reflect the costs of maintaining an independent delivery network for these destinations.

Who Will Be Most Affected by These Changes?

• Customers with P.O. Boxes or Military Addresses: With USPS being the only carrier allowed to deliver to P.O. boxes and APO/FPO addresses, customers relying on SurePost must now find alternatives.
• Rural Residents: Residents in remote areas may face higher costs or longer delivery times if UPS remains their primary carrier.
• Small Businesses: Businesses relying on SurePost’s affordability for shipping to P.O. boxes and rural areas will face increased expenses, which could be passed on to consumers.

What Are the Alternatives?

To address these changes, UPS has suggested alternatives:

1. Use UPS Store Mailboxes: Customers without street addresses can rent UPS mailboxes to receive deliveries securely.
2. Explore UPS’s Full-Service Options: For deliveries to U.S. territories, Alaska, Hawaii, and Puerto Rico, UPS’s Ground, Second Day Air, and Next Day Air services remain available.

Key Takeaways

The expiration of the UPS-USPS SurePost partnership marks a significant shift in the logistics industry. While delivery times may improve for some, the changes bring challenges for customers in rural areas, those with P.O. boxes, and small businesses reliant on affordable shipping.

For smooth delivery, customers should ensure they provide valid street addresses or explore alternative delivery solutions offered by UPS.