UPS Moves To In-House SurePost Volume As USPS Contract Fallout Continues

UPDATE 1-15-25

It would appear UPS is finally buckling under shareholder pressure, posting a statement on the Investors section of their website confirming that SurePost volume has been moved in-house in wake of USPS contract expiration.

Statement from UPS on Peak Season Service and SurePost Changes
For the seventh year in a row, we have been an industry leader during the critical peak season – including an impressive 98.9% on-time delivery rate during Cyber Week in 2024.

As we continue to leverage our track record of industry-leading service and reliability, we are insourcing our SurePost product, effective January 1. This product is an important part of the broad portfolio of end-to-end services available to UPS customers.

By leveraging the strength and flexibility of our integrated network, insourcing will allow us to control the SurePost volume from point-to-point, provide reliable service and meet our customers’ needs more efficiently.

We will discuss our fourth quarter and full-year 2024 financial results, including peak season performance, and our outlook for 2025, during our fourth-quarter financial results investor conference call.

While the statement references January 1st as the effective date of this decision, it conveniently does not provide a date for when this section was added to the page.

However, the Internet Archive Wayback Machine shows it was not present on January 2nd, which means no matter how UPS wants to try to hide it - they did not communicate the change in advance or in a timely manner.

UPDATE 1-13-25

More signs of change as UPS updates the SurePost product page with new links showing old rates.

The Surepost page has been updated today to move some information around, now showing links to rate charts in a different place than they were displayed yesterday.

Also now, if you click on the link for the current year rates that are supposed to be effective starting today, the link goes to a PDF showing the previous rates from December.

Up until yesterday, that link would have taken you to a PDF showing the rates from January 13th with APO/FPO, AK, HI, PR etc. still included.

There has still been no official public announcement, but clearly UPS is working behind the scenes to update SurePost information.

While UPS has yet to make an official statement about the future of SurePost, updates to the SurePost product page indicate the company is moving volume in-house after USPS contract expired last week.

Logistics and supply chain expert Cathy Morrow Roberson spotted the changes and linked to UPS's infographic page for SurePost - which highlights use of UPS network for delivery.

UPS' Network of the Future is a $9 billion multi-year initiative to modernize the company's operations through automation, consolidation, and advanced technology launched last year - and it appears that may be key to the company's plans to compensate for loss of USPS final mile delivery, according to this updated Surepost Network diagram.

For SurePost packages delivered by UPS, delivery will be Monday - Saturday with estimated 2 - 6 days in transit and service only available to the lower 48 US states.

That would be in line with what shippers are experiencing, with PO Boxes, APO/FPO, AK, HI, PR and other territories suddenly no longer supported by the service starting last week when the contract with USPS expired.

UPS Surepost Drops Service To PO Boxes, AK, HI, PR & More

Shippers are scrambling after UPS suddenly drops PO Boxes, AK, HI, PR, APO/FPO & more from Surepost service with no notice or explanation.

Value Added ResourceLiz Morton

The Teamsters had a meeting with UPS management on Tuesday to discuss increased volume related to UPS’s SurePost contract, 9.5 protections for overtime work, and other issues around any potential implementation of future technologies by the company as "improved guardrails around SurePost...were a critical gain for UPS Teamsters during record contract negotiations in 2023."

And the increased volume is being felt heavily by drivers, with posts flooding the r/UPSers subReddit.

The changes are also impacting shippers who use UPS Ground Saver, with label provider Pirate Ship updating their documentation to show that service no longer supports PO Boxes, AK, HI, PR etc.

Here's what Pirate Ship had to say about UPS Ground Saver ~7 months ago:

Versus what they say on a page updated in the last week:

Shippers caught in the middle of the contract breakdown between USPS and UPS are struggling to get answers about what this means for labels they've already printed and packages already in transit.

YouTuber Forrest Lee Jr's TwangTown was batted back and forth between his local UPS and USPS facilities, with both companies telling him they could not accept drop off of a package with a SurePost label.

And alarmingly, a seller in the Amazon community forum warned that packages already in transit are being returned to sender.

WARNING UPS GROUND SAVER HAS BEEN TERMINATED AS OF NEW YEAR 2025
Just sharing news that UPS (not usps) Ground SAVER also known as UPS Surepost has been discontinued as of the new year 2025 and parcels in transit are being “return to sender” as being undeliverable.

We discovered this only Tuesday morning when we noticed incoming ups surepost with final delivery usps postal service were showing undeliverable, return to sender scans.

When I called our local UPS delivery facility they said they also were informed suddenly without any warning and dealing with returning hundreds of parcels back to sender. Please note they are not reimbursing postage for all these shipments made.

I’ve also informed Veeqo which is amazons shipping platform of this change and to have ups ground saver removed as a shipping method but it’s still active and I noticed same thing with amazon buy postage it’s still there.

Relations between USPS and UPS have been tense for several months, with USPS cutting rate discounts for consolidators, discontinuing Dual Labels for hybrid shipping services and cracking down on shippers who incorrectly drop UPS Surepost or FedEx Smartpost/Ground Economy packages off at the post office.

The situation came to a head last month as USPS announced a new streamlined process for shippers to obtain Negotiated Service Agreements tailored specifically for lightweight shipments just days after UPS was forced to institute a ~25% increase to Mail Innovations rates, with lighter weight shipments most heavily impacted.

UPS Hikes Mail Innovations Rates ~25% In Christmas Eve Surprise Announcement

UPS drops Christmas Eve surprise, notifying shippers who use their Mail Innovations service that rates will be increasing by ~25% on January 1st.

Value Added ResourceLiz Morton

UPS put the blame for the increase directly on USPS, saying Parcel Select increases, eliminating discounts for DDU-entry and other Postal Service actions have put the company in an untenable position.

But USPS hit back yesterday with a Postal Bulletin confirming their commitment to "open communication amid strategic realignments", saying business partners were informed of upcoming changes in Spring 2024 and should have been aware of impacts - clearly taking an indirect swipe at UPS.

USPS vs UPS? Postal Bulletin Takes Indirect Swipe As Expired Contract Fallout Continues

USPS hits back at attempts to place blame for sudden changes impacting consolidators & hybrid services with veiled bulletin clearly aimed at UPS.

Value Added ResourceLiz Morton

Stay tuned for updates when we hear more from UPS and in the meantime, let us know in the comments below how the changes to UPS SurePost, Ground Saver, and Mail Innovations are impacting your ecommerce businesses!