U.S. Postal Service prepared for peak season surge

Why It Matters: Peak season is when carriers are tested the most and can feel customer backlash if they aren’t prepared to handle the higher volumes.

The postal operator credits new technology, logistics planning and execution for its ability to efficiently handle the influx of mail. Last year, between Nov. 15 and Jan. 9, on-time delivery scores were higher in nearly all service categories, with the best scores being in last mile delivery for shipped and postal consolidators injecting pre-sorted freight at post offices with large back-end receiving facilities to skip upstream postal processing..

The Postal Service installed 164 sophisticated, automated package sorting machines at facilities around the country this year, part of a $40 billion investment plan begun in 2022 to transform the organization’s middle-mile network. It has added a total of 673 high-speed sorters so far, according to the announcement. The machines can handle more and larger parcels than previous-generation machines. 

In fiscal year 2026, ending Sept. 30, the USPS opened 31 sorting and delivery centers and 10 regional processing and distribution centers that work in tandem with 35 local processing facilities. In total since 2022, the Postal Service has opened 182 S&DCs, 19 regional DCs and four standalone regional transfer hubs. 

S&DCs were created to remove duplication and increase efficiency in a network that relied on more than 18,000 destination delivery units — post offices with receiving docks postal officials said are too small, ill-equipped and poorly maintained. The sorting hubs consolidate work once assigned to about 10 DDUs and use small sorter  equipment that can process between 2,500 to 4,300 pieces per hour to serve upward of 200,000 customers daily. 

A better tracking and reporting platform, introduced in 2025, is also helping increase package visibility. The tracking is nearly four times faster than the previous version, often providing updates within a minute of scanning, the USPS said. The platform is connected with other systems that allow customers to get accurate information about the location of their packages using the USPS app or by signing up for messages.

In fiscal year 2026, ending Sept. 30, the USPS opened 31 sorting and delivery centers and 10 regional processing and distribution centers that work in tandem with 35 local processing facilities. In total since 2022, the Postal Service has created 182 S&DCs, 19 regional DCs and four standalone regional transfer hubs. 

S&DCs bring focus and structure to a network that for too long has relied on a haphazard and ever-growing patchwork of destination delivery units (DDUs), many of which are too small, ill-equipped and poorly maintained. With nearly 19,000 DDUs across the country, we were not only operating a costly delivery network but also perpetuating a system that has hindered our ability to evolve with the market as demand for package delivery soared.

The answer to this problem is our new system of S&DCs. Each of these large, spacious, well-equipped facilities — many already owned by the Postal Service or on a long-term lease — typically consolidate the work once assigned to about 10 DDUs. Each S&DC will use the latest automated sorting equipment to serve upward of 200,000 customers daily, bringing new efficiencies to our delivery operation and improving our service performance.

New commercial chief

To improve strategic planning in targeted markets, the quasi-private organization created a Chief Solutions and Strategy Office to analyse the entire enterprise, centralize network planning and identify ways to work more effectively and efficiently. The group is also working more closely with USPS customers to better match their needs with postal solutions, the Postal Service said.

In related news, the Postal Service earlier this month promoted Gary Reblin to chief commercial officer. He has served as chief technology officer since August 2025 after moving up the ranks for 35 years. In a LinkedIn message, Reblin said insights he gained as CTO will help decision making to modernize sales, competitive pricing for parcels, retail stores, delivery and tracking. 

Reblin is credited with helping shape the early partnerships that brought privately transported parcels directly to local post offices for delivery, which continue to serve as an area of revenue growth for the financially struggling organization. 

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