UPS to Become US Postal Service’s Main Air Cargo Provider

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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