UPS Becomes Primary Air Cargo Provider For USPS

UPS has secured a significant air cargo contract from the United States Postal Service (USPS), establishing itself as the primary air cargo provider for the agency.

According to UPS, it will handle the majority of air cargo transportation in the US for the postal service after a transition period. I Photo: UPS

Michelle Chapman reported for The Associated Press (AP) that the Atlanta-based shipping company announced the expansion of its existing partnership with USPS.

According to UPS, it will handle the majority of air cargo transportation in the US for the postal service after a transition period. However, the financial terms of the agreement were not disclosed. USPS's current air cargo contract with FedEx Corp. is scheduled to conclude in late September.

The agency stated that its contract with UPS will span a minimum of five-and-a-half years.

In a regulatory filing, FedEx noted that it was unable to reach an agreement on mutually beneficial terms to extend its contract with USPS. Negotiations concluded on Friday after extensive discussions.

FedEx Express will continue to provide air transportation services domestically and to Puerto Rico until the contract expires on September 29. UPS's contract with USPS will take effect the following day.

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