UPS & USPS Reconnect on Ground Saver; Positive Signs in a Soft Freight Market

UPS and the United States Postal Service have reached a preliminary agreement that may restore USPS as the last-mile delivery partner for UPS’s Ground Saver service, according to Supply Chain Dive. The two companies are working through key commercial terms like rates, volume commitments, and service expectations, with the goal of finalizing a deal soon. Ground Saver was previously a USPS-supported product under the SurePost brand until UPS took the operation fully in-house early in 2025 to improve delivery reliability and reduce dependencies.

Bringing USPS back into the network could strengthen UPS’s ability to reach P.O. Boxes, rural areas, and other destinations that are costly for its ground network to serve directly. The move follows a significant downturn in Ground Saver volumes, including a steep third-quarter decline that contributed to higher delivery-stop expenses and financial pressure on the service. For USPS, renewed volume from one of the world’s largest parcel carriers would support utilization of its growing last-mile infrastructure as the agency moves through a period of operational restructuring and new leadership.

As shippers look toward 2026, the full implications of the revived partnership will depend on the finalized agreement. Pricing, delivery reliability, and service coverage may shift again, especially for low-cost economy parcel delivery.

The U.S. freight market is still navigating oversupply and subdued demand, but the latest transportation data points to early recovery indicators, particularly in the less-than-truckload sector, according to the TD Cowen/AFS Freight Index. LTL carriers have kept pricing firm even as shipment weights decline. Cost per shipment has held relatively steady, reflecting a focus on yield protection rather than chasing volume in a soft market. Rate-per-pound metrics also continue to trend above historical baselines, signaling that LTL operators retain leverage despite weaker demand.

On the truckload side, conditions remain challenging. Excess capacity persists, and rate per mile improvements are marginal. Though economic growth and interest-rate cuts offer faint optimism, the market remains below long-term performance averages with limited upward momentum. Carriers continue to withdraw equipment and consolidate networks as they wait for demand to strengthen more meaningfully.

For shippers, the environment still offers cost advantages in truckload procurement, while LTL may require more careful planning around carrier selection and contract negotiations. For carriers, a sustained recovery will likely depend on continued capacity discipline and gradual economic strengthening.