With the expiration of the UPS/USPS Negotiated Service Agreement (NSA) on December 31, 2024, the UPS SurePost program has come to an end. UPS SurePost was a hybrid shipping system that integrated the United States Postal Service (USPS) for last-mile delivery with UPS’s ground network. Since USPS is the only carrier permitted to deliver to P.O. Box or APO/FPO addresses, this provided convenient service to people with these addresses.

There are serious repercussions to this change:

• No P.O. Box or APO/FPO Deliveries via UPS: Any package addressed to a P.O. Box or military address (APO/FPO) that is shipped through UPS will now be refused and sent back to the sender.
• Impact on 31,000 ZIP Codes: The end of SurePost affects a substantial number of addresses across the United States, leaving USPS as the only option for delivering to these destinations.

What This Means

The loss of SurePost creates new complications for eCommerce. Most vendors using “free shipping” through UPS will now require a physical street address for delivery, creating significant challenges for people relying on their P.O. Box or APO/FPO addresses.

All online shoppers will have to double-check their shipping methods and choose the appropriate carrier if they want their orders delivered successfully. If not, their orders may be rejected before they ever get to reach the post office.

Meanwhile, Retailers will have to adapt by updating their shipping policies and systems to avoid disruptions. Those who had previously utilized SurePost for deliveries to remote locations or military addresses will now need to find alternatives, such as direct USPS shipping or workshare partnerships still utilizing USPS for the final mile.

Shipping Costs on the Rise

UPS announced rate and surcharge increases in December 2024, to take effect on January 13, 2025. The increases include:

• A 9.9% rate increase for SurePost packages weighing 1-10 pounds.
• A 6% increase for SurePost packages weighing over 10 pounds.
• Increases to both DAS (Delivery Area Surcharge) and EAS (Extended Area Surcharge) rates at 61.8% and 69.4%, bringing them in line with UPS Ground surcharges.

For some shippers, these changes translate to an effective rate increase as high as 30%. Retailers who depend on UPS as an affordable delivery option will now face higher costs, which may be passed along to consumers in the form of increased shipping fees or product costs.

The end of UPS SurePost points to a larger trend in shipping—higher costs and more challenges for both merchants and consumers alike. Since USPS is the only viable option for P.O. Box and APO/FPO deliveries, its role in eCommerce logistics has become even more critical.

How SalesWarp Can Help

SalesWarp Ship, a free shipping management platform, simplifies managing USPS shipments and can help you navigate these changes with ease. With SalesWarp Ship, you can:

• Access exclusive discounted USPS shipping rates to offset rising shipping costs.
• Create and print shipping labels directly within the app.
• Automatically import and manage orders from multiple sales channels in one platform.

Have questions? Talk to an expert about managing your shipments here.