If you’re a regular user of UPS SurePost or Ground Saver services, you’re likely aware of their unique cost-saving model. Historically, these services relied on a hybrid delivery approach, where packages were delivered partially by UPS and partially by USPS. These services were generally priced cheaper than standard ground residential service and typically a day slower. They were particularly cost-effective for items under 10 pounds. You might recognize this by the distinctive double labels used for such shipments.
However, a significant change has recently taken place, and it could have a considerable impact on your shipping costs.
UPS SurePost packages are no longer being delivered by the United States Postal Service after a contract between the two entities expired. As of December 31st, 2024, USPS no longer permits packages to be dropped off at local post offices by third parties like UPS. Additionally, the use of double labels has been discontinued. These changes have led UPS to raise SurePost rates by 9.9%. The new rates became effective on January 13th, 2025.
Here’s how the numbers break down:
| 1 lb – Zone 2 | 2024 Rate | 2025 Rate | % Change |
| Base Rate | $11.17 | $12.28 | 9.94% |
| Fuel Surcharge (17.5%) | $1.95 | $2.15 | 9.94% |
| Total | $13.12 | $14.43 | 9.94% |
If your business spent $1 million on SurePost in 2024, this rate hike alone could add $100,000 to your shipping expenses!
Adding to the burden, UPS has significantly increased its Delivery Area Surcharge (DAS), which applies to certain zip codes (~30% of the U.S. population). This fee rose from $3.80 to $6.15, a staggering 62% increase.
| 1 lb – Zone 2 | 2024 Rate | 2025 Rate | % Change |
| Base Rate | $11.17 | $12.28 | 9.94% |
| DAS | $3.80 | $6.15 | 61.84% |
| Subtotal | $14.97 | $18.43 | 23.11% |
| Fuel Surcharge (17.5%) | $2.62 | $3.23 | 23.28% |
| Total | $17.59 | $21.66 | 23.14% |
If your business spent $1 million on SurePost in 2024 to affected areas, this rate hike alone could add over $200,000 to your shipping expenses!
This equates to a 23% increase in costs for packages delivered to affected areas.
The shipping market is competitive, and there are steps you can take to mitigate these rising costs. Don’t let these changes affect your bottom line without exploring your options.
At Threecolts, we specialize in helping businesses navigate these complexities and uncover cost-saving opportunities. Don’t take these changes sitting down!
No matter what stage your company is in when it comes to profitability, our team is here to help you achieve your goals.
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