Update statement with "case syntax" is unable to update a specific column in temp table
Here is the solution: (The update statements had to be rearranged so they executed on there own.) 

UPDATE  [#tempShip] SET  [ord_status] = CASE
                WHEN RTRIM([ord_status]) = 'N' THEN 'New'
                WHEN RTRIM([ord_status]) = 'Q' THEN 'Printed'
                WHEN RTRIM([ord_status]) = 'P' THEN 'Picked'
                ELSE ''
                END

UPDATE                 [#tempShip] SET           [#tempShip].[DUP] = 1
FROM #tempShip
INNER JOIN
(
SELECT X.order_N_ext, COUNT(X.order_N_ext) AS dup
FROM #tempShip AS X
GROUP BY X.order_N_ext
) AS Y
ON #tempShip.order_N_ext = Y.order_N_ext
WHERE Y.dup &gt; 1;
    ----- -- mbs 3/30/2017  #22844 - add parameter @ship_type 
    SELECT * FROM #tempShip 
    WHERE ship_type LIKE @ship_type 
    -------&lt;&lt;&lt;