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

UPDATE 1-8-25

As we wait for official answers from UPS about the future of SurePost, product page updates indicate the company is working to move volume in-house as part of Network Of The Future initiative after USPS contract expired last week.

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

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Value Added ResourceLiz Morton

UPDATE 1-7-25

USPS is hitting back at attempts to place blame for sudden changes impacting consolidators and hybrid services, with a "no names mentioned" Postal Bulletin clearly aimed at UPS.

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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

Shippers are scrambling for answers today after UPS appears to have suddenly dropped PO Boxes, Alaska, Hawaii, Puerto Rico, APO/FPO and more from Surepost service with no notice or explanation.

UPS has not made any official public announcements about the change but major shippers and logistics analysts are noting the service is no longer available to those destinations as of today and API calls attempting to create labels for Surepost to those locations now return a message saying UPS cannot deliver to these addresses.

Aaron Rubin, Founder & CEO of ShipHero, has also confirmed Surepost can no longer deliver to those locations because USPS had previously handled delivery of those package and their agreement with UPS ended today.

While the timing is certainly surprising, the fact that UPS is moving in this direction isn't, as relations between USPS and other carriers which use the post office for last mile delivery on hybrid shipping products have been on the rocks for months.

USPS has recently cut rate discounts for consolidators, discontinued the use of Dual Labels for hybrid shipping services and is cracking down on shippers who incorrectly drop UPS Surepost or FedEx Smartpost/Ground Economy packages off at the post office.

And in the latest shot across the bow, USPS announced a new streamlined process to 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, due to USPS eliminating the Parcel Select Lightweight product and discounts for DDU-entry.

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Value Added ResourceLiz Morton

Postmaster General Louis Dejoy has said the previous agreements with consolidators that enabled these hybrid services were no longer in the best interest of the Postal Service, so changes are necessary to bring NSAs into alignment with the Delivering for America plan to create an efficient network and grow USPS' own end-to-end ground package product.

Increasingly it appears UPS, FedEx and others may be forced to shift final mile delivery back to their own networks as USPS ramps up competition for end to end ground business with their Ground Advantage service.

UPS has not responded to request for comment as of time of publishing. Stay tuned for updates in this developing story!