UPS Replaces FedEx as Major Air Cargo Supplier for USPS

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It is the start of a brand new partnership between the U.S. Postal Service and UPS β€” however it ends a long-term relationship with rival provider FedEx.

The USPS stated on Monday that UPS would now be its main air cargo supplier after FedEx had stood within the place for over 20 years.

“This award is efficient instantly and vastly expands the prevailing relationship between the 2 organizations,” UPS stated in a firm launch. “Following a transition interval, UPS will grow to be the USPS’s main air cargo supplier and transfer nearly all of USPS air cargo within the US.”

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UPS referred to as the partnership with the USPS “mutually helpful” because it goals to clean out each group’s already “built-in community.”

The precise monetary phrases of the brand new partnership haven’t been publicly disclosed, however Reuters reported that UPS famous the worth was “vital.”

The outlet additionally famous that FedEx had made an estimated $2 billion yearly from its contract with the USPS.

FedEx, in the meantime, stated on Monday in a securities submitting that they have been “unable to achieve settlement on mutually helpful phrases to increase the contract” and that it might make changes to make up for the loss.

In This autumn 2023 earnings, UPS reported consolidated revenues of $24.9 billion, down considerably (7.8% roughly) from the $27 billion it introduced in on the similar time final yr.

Quarterly consolidated working revenue got here in at $2.5 billion in This autumn, a 22.5% drop from the identical time in 2022.

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“2023 was a singular and tough yr and thru all of it we remained centered on controlling what we might management, stayed on technique, and strengthened our basis for future development,” UPS CEO Carol TomΓ© stated on the time.

UPS was down over 23% yr over yr as of Monday late afternoon.



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