Earlier this year, UPS went after profits in urban areas, asserting surcharges of $3.95 to $5.85 on packages within 82 urban zip codes. Now, the carrier is trying to save money with the expansion of its rural deferred program.

What is the rural deferred program?

In addition to rising rates and added surcharges, UPS is experimenting with ways to save money by reductions in service. UPS will consolidate shipments in its rural deferred program, so packages to specific rural zip codes will spend an additional day in transit.

UPS isn't alone in its rural cuts. In August 2022, FedEx cut Sunday service for 15% of its customers— mainly impacting rural customers. USPS is also considering a plan to slow down mail to addresses 50+ miles outside major processing centers after the election.

Who is impacted by these new rural cuts?

In an email published by Sierra County, CA, dated June 10, 2024, Bruce Mac Rae, Vice President of Government Affairs for UPS, explained the delays: "We are consolidating deliveries in certain ZIP codes to help our drivers more efficiently serve our customers. We often adjust our network throughout the year to meet customer demands and this includes testing ways to improve our productivity and efficiency."

The carrier hasn't announced which zip codes are affected, but local news outlets in at least seven states have reported service delays. An estimated 60 million Americans live in rural areas, but according to UPS, this program will affect less than 1% of its daily customers. Also in the email to Sierra County, Mac Rae said, "The vast majority of our customers will not experience any difference in the service they receive, and we remain committed to serving our customers wherever they live and work."

It's not a stretch to say that rural residents are even more reliant on timely parcel deliveries than people who live in the city. Although UPS guarantees expedited delivery of time-sensitive UPS Premier healthcare parcels, over-the-counter orders from places like CVS could be delayed.

How are the drivers reacting?

On a Reddit thread, several drivers chimed in, with one saying, "Rural deferment is happening everywhere. It's the newest idea to save money from big brown. As a driver in rural upstate ny, it ... sucks. 12hr days every single day because we're always running 2 days worth of work."

The sentiment is widespread, and the UPS Teamsters have stepped in, saying that the rural deferred program "undermines customer service and good jobs." The union says it's "pushing back on Rural Deferred through the grievance process and are partnering with customers in rural communities to call out UPS's greed."

Are you affected by rural deferred delivery? Here's what you can do

If you're sending to a rural area affected by the delay, the UPS Shipping Calculator and Shipping Applications will show the additional day. If your delivery is late, parcel audits can help you recoup costs.

Getting started with ShipRx's parcel audit is fast and free— you won't spend a cent until you see a refund.