In July 2023, the US Postal Service announced a new addition to their lineup of shipping options, USPS Ground Advantage, a long with some fairly significant changes to the rest of their small-package product lineup.
The announcement of these changes came with relatively little fanfare, but they are pretty significant for small-package shippers, and some shippers my find that they make USPS an extremely competitive option for many of their ground shipments.
This is an area of interest to quite a few of my clients, so I thought I’d write up a quick summary of what I know so far. As a disclaimer, I do not work for the USPS and my anecdotal observations may be specific to western PA. When in doubt, check with your USPS rep or the friendly folks at your local post office.
Elimination of Network Distribution Centers (NDCs)
To understand the changes that come with Ground Advantage, it’s important to understand a major change that’s currently underway in the postal distribution network.
For the past several decades, ground-exclusive services have had a unique place in the USPS network, with Parcel Select Ground, Retail Ground, and Media Mail packages distributed alongside bulk mail by Network Distribution Centers (NDCs).
In 2023, the USPS announced plans to eliminate the NDC system and move mail previously processed by these facilities into their standard logistics network. This means that Parcel Select Ground and Media Mail will no longer be processed by separate facilities.
This change empowers the USPS to speed up ground delivery times while routing more of their Priority Mail volume through their ground network.
What does this mean for Priority Mail?
The Priority Mail service is unaffected by this change, continuing to provide 1-3 business day service to any US address.
What does this mean for First Class Package?
First-Class Package service has been eliminated and is replaced by Ground Advantage.
Ground Advantage provides 2-5 business day service, which matches the current service level for First Class Mail set in 2021.
What does this mean for shipments to Hawaii, Alaska, US territories, and overseas military?
“Ground” shipments to offshore locations can be extremely time consuming. Media Mail shipments to offshore locations can take weeks to complete as the mail moves to its destination by boat instead of air.
The current USPS documentation about Ground Advantage is unclear as to whether the 2-5 business day timeframe will apply to offshore states and territories.
A recent USPS blog post states “Packages going to certain places (including Alaska, Hawaii, and offshore destinations) […] may receive slower service.”
However, eBay has recently released a FAQ about Ground Advantage which states that “USPS Ground Advantage will fly to/from/throughout offshore destinations as a 2-5 service whereas PSG currently travels by boat and is a 2-8 day service”. It’s unclear where they received this information.
What does this mean for Parcel Select Ground?
Parcel Select Ground service (and its retail sister service, Retail Ground) has been eliminated and is replaced by Ground Advantage.
Ground Advantage provides 2-5 business day service, which matches the current service level for Parcel Select Ground.
Ground Advantage packages are now routed through the standard USPS network, not the NDCs (though it remains a ground only service and will not ship by air).
Ground Advantage provides up to $100 of insurance at no additional cost, unlike Parcel Select Ground which offered insurance for an additional fee.
What does this mean for Media Mail?
Media Mail currently continues to exist as a standalone service and service levels are unchanged.
With the elimination of NDCs, Media Mail has begun to be routed through the normal USPS distribution system in many areas.
I’ve heard anecdotal reports – primarily from western PA and northeast OH – that this has resulted in a significant speed-up in Media Mail processing and delivery times.
Some shippers have also observed that NDCs tend to experience significant slowdowns during periods of heavy load, such as during peak season and during the 2020 COVID lockdowns. The consolidation of the mail streams may reduce or eliminate these slowdowns.