In recent developments, UPS SurePost packages are now being exclusively delivered by UPS drivers, as opposed to a significant portion of these parcels being handled by the U.S. Postal Service, as reported by a Teamsters union spokesperson to Supply Chain Dive. The union highlighted in a Facebook post that millions of packages have transitioned away from SurePost and the Postal Service, and are now being managed by UPS Teamsters.
Despite multiple attempts to reach out to UPS for comment on the reported changes to SurePost, the company has not responded. However, an examination of SurePost information on UPS’ website reveals that references to the Postal Service have been removed. Previous versions of the overviews showcased how SurePost utilized the agency for services such as PO Boxes and deliveries to addresses outside the contiguous U.S.
The capabilities listed for UPS SurePost have undergone modifications, as depicted in a comparative table displaying the former and current listings. These changes include a shift in the last-mile delivery provider from the U.S. Postal Service and UPS to solely UPS, a reduction in coverage to the contiguous U.S. only, and a decrease in estimated transit time from 2 to 7 days to 2 to 6 days.
SurePost, like other delivery services, previously relied on the Postal Service’s final-mile network for cost-effective shipping solutions. However, with UPS-employed drivers now handling a larger share of the SurePost volume under the Teamsters’ current contract agreement, the dynamics of the delivery landscape are evolving. Additionally, the Postal Service’s strategy to consolidate packages further upstream in its network through new contracts is altering the shipping ecosystem.
In light of the changing partnerships, UPS is faced with the challenge of efficiently delivering millions of additional packages within a more streamlined network. The carrier’s efforts to optimize operations have involved reducing capacity and closing facilities as part of its “Network of the Future” initiative. The absence of the Postal Service as a SurePost partner necessitates UPS to reassess its delivery strategies and potentially increase fees for packages destined for remote and rural locations.
The impact of these changes is expected to result in rate and surcharge increases for SurePost, effective Jan. 13, according to UPS announcements. Analysts predict that SurePost may eventually transform into a service similar to FedEx Ground Economy, which previously utilized the Postal Service for final-mile deliveries under the “FedEx SmartPost” brand. This evolution could lead to a pricing structure that falls between SurePost and UPS Ground services, with a focus on cost-effectiveness and efficiency in delivery processes.
As the logistics landscape continues to evolve, stakeholders in the industry are closely monitoring the developments within the delivery sector. The shifting dynamics of partnerships and operational strategies among key players like UPS and the Postal Service are indicative of the ongoing transformation in the supply chain and logistics industry. Adapting to these changes will be crucial for businesses to maintain competitiveness and efficiency in the evolving market environment.