UPS and USPS Reunite to Strengthen Low-Budget Parcel Delivery

United Parcel Service (UPS) and the United States Postal Service (USPS) have reached a preliminary agreement to reestablish cooperation on cost-effective ground parcel services — a move expected to improve last-mile delivery performance across the U.S.

1. Background of the New Partnership

* UPS CEO Carol Tomé* confirmed that both parties have reached an understanding on shipment volume and pricing terms, and are finalizing details of a new agreement.

* Under the plan, UPS will continue to manage the middle-mile and long-haul transportation*, while USPS will once again handle the residential last-mile delivery* portion. UPS described the model as a “win-win-win” for the Postal Service, UPS, and customers alike.

* Earlier this year, UPS had fully internalized its low-cost parcel products — including SurePost and Ground Saver — after contract structure changes and cost concerns made the partnership less efficient.

* The new agreement signals a renewed reliance on USPS’s extensive last-mile delivery network, especially for low-budget, low-density parcels.

2. What This Means for GoodShip Clients

For businesses shipping from China to the United States*, the UPS-USPS collaboration offers key advantages at the final stage of delivery.

(1) Stronger Last-Mile Reliability Across the U.S.

Although GoodShip primarily focuses on cross-border logistics — ocean freight and air freight from China to the U.S. — domestic last-mile efficiency is crucial for the customer experience.

UPS’s middle-mile infrastructure combined with USPS’s unmatched last-mile reach means faster and more reliable deliveries to residential addresses and remote areas.

(2) Improved Cost Efficiency and Service Options

By combining UPS’s long-haul strength with USPS’s vast delivery network, the new model can reduce per-package costs* for low-density shipments.

This offers GoodShip clients an opportunity to integrate cost-optimized, end-to-end shipping solutions* — from China’s ports to the customer’s doorstep in the U.S.

(3) Wider Service Coverage and Flexibility

USPS provides access to millions of postal addresses, including rural regions and P.O. Boxes*, which private carriers often can’t fully cover.

With this collaboration, GoodShip can confidently extend its U.S. delivery coverage and ensure comprehensive service reach, even for smaller or budget-sensitive shipments.

3. Strategic Recommendations for GoodShip Customers

Based on this development, GoodShip suggests the following logistics strategies for clients shipping to the U.S.:

* Offer “Economy Last-Mile” options* for low-value or lightweight e-commerce parcels, where delivery cost and coverage matter more than speed.

* Highlight the clear division of responsibilities* — “Middle-mile by UPS / GoodShip + Last-mile by USPS” — when explaining logistics chains to customers.

* Monitor and report performance metrics* such as last-mile delivery time, success rate, and customer satisfaction after the new partnership is implemented.

* Match service level to cargo type*: high-value or time-sensitive shipments may still benefit from UPS’s full-service options, while low-value or bulk shipments can use the joint delivery model for better cost efficiency.

4. Outlook and Challenges

While the renewed cooperation looks promising, a few points remain to be confirmed:

* The deal is still preliminary*, with several terms pending finalization.

* UPS previously ended the partnership due to cost and density challenges — issues that will need to be resolved to sustain this model.

* Service consistency may still vary across remote U.S. regions or specific address types such as APO/FPO or P.O. Boxes.

* For GoodShip, while the last-mile portion is domestic to the U.S., we continue to focus on optimizing China-side pickup, air/sea transport, customs clearance, and U.S. warehouse delivery*, ensuring the entire supply chain performs seamlessly.

5. Conclusion

The renewed UPS-USPS partnership marks an important step in reshaping low-cost parcel logistics in the U.S. For GoodShip*, it creates new opportunities to offer customers more flexible, cost-effective, and reliable door-to-door shipping solutions from China to the U.S.

We will continue to monitor the implementation of this agreement and update our clients as more details are confirmed.

If you would like to learn more about how this collaboration can benefit your shipments — or to get a quote for air and sea freight from China to the U.S. — please contact our GoodShip logistics team anytime.