FedEx Shuts Out UPS to Win $10.5 Billion in Postal Service Work

Discussion in 'The Latest UPS Headlines' started by cheryl, Apr 24, 2013.

  1. cheryl

    cheryl I started this. Staff Member

    FedEx Wins $10.5 Billion Postal Contract as UPS Shut Out - Bloomberg

    FedEx Corp. (FDX) won a seven-year contract with the U.S. Postal Service valued at about $10.5 billion to carry mail between U.S. airports, fending off a challenge from United Parcel Service Inc. (UPS)

    The new accord to fly Express Mail and Priority Mail starts in October once the current deal ends, FedEx said yesterday in a statement. The Memphis, Tennessee-based company didn’t give details beyond the value and length of the agreement.

    The contract locks in FedEx’s business with the Postal Service and erases concern that it would lose some work to UPS as the U.S. mail carrier restructures after years of losses. FedEx has a larger U.S. air network and already has the labor and assets to handle Postal Service volume, most of which is processed during the day after the company’s premium overnight packages and documents have been cleared.