UPS to Become US Postal Service’s , Main Air Cargo Provider.
On April 1, United Parcel Service announced that it will replace FedEx as the primary air cargo provider for the USPS, CNBC reports.
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On April 1, United Parcel Service announced that it will replace FedEx as the primary air cargo provider for the USPS, CNBC reports.
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FedEx is walking away from a 22-year partnership after failing to secure a better contract with the agency.
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FedEx is walking away from a 22-year partnership after failing to secure a better contract with the agency.
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In fiscal year 2023, USPS paid FedEx $1.73 billion for its services, down from the $2.4 billion FedEx received in fiscal year 2020.
The decrease in payments was partially due to the postal service using more economical trucks in place of planes, CNBC reports.
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The parties were unable to reach agreement on mutually beneficial terms to extend the contract, FedEx, via securities filing.
Since FedEx will lose nearly $2 billion in annual business from letting go of the contract, .
Hundreds of pilots will likely lose their jobs, CNBC reports .
Following the announcement, UPS shares increased 1.4% while FedEx stock dropped 1.6%.
FedEx's current contract is set to expire on Sept.
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