UPS becomes USPS primary air cargo provider (~$2B contract)

Sharing is Caring!

(Reuters) -United Parcel Service said on Monday it will become the United States Postal Service’s (USPS) primary air cargo provider, as rival FedEx announced an end to its more than 20-year partnership with the postal service provider.

USPS was the largest customer for FedEx’s air-based Express segment, even as payments declined after the postal service shifted letters and packages from planes to more economical trucks as part of an operational revamp.

See also  Chaos erupts as a cruise ship becomes the scene of a shocking stabbing spree.

“It’s not a huge loss for FedEx, but it will impact their density… You’re losing consistency in terms of revenue from a pretty significant partner, but it wasn’t the most profitable business for them … it’s not all negative,” said Faisal Hersi, an equity analyst at Edward Jones.

USPS represented just about 4% of Express’ annual revenue, according to a Reuters calculation.

See also  Google office feud over $1.2B Israeli contract sparks internal strife and firing.

Views: 70

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.