UPS announced Monday that it will become the primary air cargo provider for the United States Postal Service (USPS) after signing a major new contract.
The company will transport the majority of USPS air cargo within the United States after a transition period.
“Together, UPS and USPS have developed an innovative solution that is mutually beneficial and complements our unique, highly reliable and efficient integrated network,” said UPS CEO Carol Tomé. Said In a press release.
Details of the contract have not been disclosed.
News of the deal comes after negotiations between USPS and FedEx Express ended on March 29 when the parties were “unable to reach agreement on mutually beneficial terms for a contract extension,” according to FedEx. It was done. SEC filing.
FedEx will provide domestic air transportation services for the USPS, including to Puerto Rico, until the contract expires on September 29th.
FedEx said in an SEC filing that USPS’ plans to make “strategic changes to its operations to reduce dependence on the FedEx Express aviation network” will have an adverse impact on its business and financial condition.
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