The recent shutdown and layoffs at 10 Roads Express — a major contractor for United States Postal Service (USPS) — are reverberating across the U.S. logistics and mail‑delivery ecosystem, underscoring the fragility of heavy reliance on a limited number of private carriers.
What Happened: Shutdown & Layoffs
According to public notices, 10 Roads Express initiated layoffs across multiple states — affecting a total of 127 workers per WARN‑notice filings between late 2023 and early 2025.
In one facility alone, 66 workers — including 55 drivers — were laid off following cancellations of postal contracts. The drop in contract volume from USPS, its core customer, has forced 10 Roads to scale back operations sharply.
Labor Unrest: Strike Highlights Contractor Instability
The company’s troubles preceded the layoffs. In February 2025, more than 500 drivers represented by International Brotherhood of Teamsters walked out in an eight‑state strike, alleging unfair labor practices and demanding a fair contract after 10 Roads presented what the union called “insulting and unrealistic” terms.
The strike, which involved roughly 20% of the carrier’s driver force, temporarily disrupted some mail routes and raised questions about long‑term service reliability.
What It Means for USPS and Retail Supply Chains
Because 10 Roads Express has historically hauled hundreds of millions of dollars’ worth of mail freight for USPS, its scaling back — and in some cases ceasing — of operations presents immediate risks:
- Mail and parcel delivery delays: Especially in regions where 10 Roads was the primary ground carrier.
- Increased pressure on remaining carriers: Other contractors may be forced to absorb volume, straining capacity and potentially raising costs.
- Disruptions to retail supply‑chain reliability: Retailers, especially those relying on USPS for e‑commerce fulfilment or returns, may see increased lead times and unpredictability.
Broader Implications
The 10 Roads debacle illustrates the vulnerability in outsourcing critical logistics to a concentrated set of private carriers. For USPS, it underscores the challenges of managing a network heavily dependent on for‑hire contractors — and for retailers, it serves as a warning that supply‑chain resilience requires diversification and contingency planning.
As carriers downsize or exit USPS business, the entire network may face turbulence — a signal that retailers and logistics planners should reevaluate assumptions about “steady” mail and parcel delivery capacity.
