UPS says postal contract will make money

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Wednesday, 24 April 2024

USA-based United Parcel Service (UPS) says it expects its newly won US Postal Service (USPS) air cargo contract to be profitable from 'start to finish', despite the incumbent FedEx seeming to struggle with the business.

UPS ceo Carol Tome said this week it can make money because it has a unified network that lowers costs by reducing the distances postal service shipments travel.

"In contrast to traditional hub and spoke models, we don't have to run all of the air volume through our main air hub in Louisville, Kentucky," Tome said.

The USPS contract is effective September 30 and runs for an initial five years.