Usps Fedex Agreement

“We are pleased to extend this agreement and continue the outstanding service FedEx Express has provided to USPS for more than 16 years,” said David J. Bronczek, President and Chief Operating Officer of FedEx Corporation. “This contract provides USPS with the operational security and flexibility it expects from FedEx.” United States Postal Service (USPS) has renewed its express air contract with FedEx Express. The contract was originally executed on April 23, 2013. The amendment extends the agreement until September 29, 2024. FedEx also said it was preparing to remove about 5,000 drop-off boxes at U.S. Postal Service sites in about 340 metropolitan areas, pursuant to a separate agreement that expired in June. MEMPHIS, Ten., February 23, 2017 – FedEx Corp. (NYSE: FDX) today announced that its FedEx Express subsidiary has entered into a new express air contract with united States Postal Service, originally executed on April 23, 2013. The treaty amendment extends the contract until September 29, 2024. The Post Office said in a statement on Thursday that there may be “temporary effects on the service” that the Authority will have to determine the causes and correct them. FedEx is focused on reducing costs to increase profit margins, as slow economic growth reduces shipment volumes and consumers demand cheaper delivery options. Fred Smith, chairman of the board of directors, said in June that the company would provide details on its planned restructuring of the Express division at its analyst meeting in October.

FedEx received more than $2 billion in mail payments in fiscal 2019, according to a study by David Hendel of Husch Blackwell`s Postal Contracting-Praxis. That was about four times more in Payment than the second provider. The way is thus clear for the largest competitor United Parcel Service UPS. N to take business – national air transport for the first priority, and express-post – that FedEx has had since the year 2000. Max Garland covers FedEx, logistics and healthcare for The Commercial Appeal. Reach it or 901-529-2651 and @MaxGarlandTypes on Twitter. The postal service is FedEx Express` largest customer, as FedEx reported. The Memphis-based air cargo giant is offering domestic transportation services from one airport to another as part of a contract expiring in 2024. It also offers international transport and delivery for mail. The amended contract is expected to generate revenue for FedEx Express of approximately $1.5 billion per year. FedEx Express will offer transportation from USPS Priority Mail Express and Priority Mail from airport to airport within the United States.

“Service levels are being challenged,” says John Haber, CEO of Spend Management Experts, a transportation expenses consultant. “The mail is far behind, we see that Amazon`s transit time is running, UPS and FedEx are chasing, everyone is going.

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