UPS wins US Postal Service account

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Tuesday, 02 April 2024

United Parcel Service (UPS) has won the United States Postal Service's 'primary air cargo provider' account, ending rival FedEx's more than 20-year partnership with USPS.

The 5.5-year-minimum contract is effective September 30.

The switch is not seen as a huge loss for FedEx; USPS represented about four per cent of its annual revenue, according to Reuters.

FedEx’s Postal Service revenue fell to US$1.9 billion in 2022 after previously generating annual revenues of at least US$2 billion.