No longer renewing the contract with FedEx, UPSP will reach a new cooperation with UPS!

It is learned that on April 1, according to foreign media reports, the United States Postal Service (USPS) failed to reach an agreement with FedEx on mutually beneficial terms for extending the contract. After the agreement, the cooperation between the two parties will not be renewed after it expires on September 29. At the same time, USPS signed a new air freight contract with United Parcel Service (UPS), which will take effect on September 30 and last for at least five and a half years.

It is understood that the change of air freight companies is part of the USPS's cost-cutting measures. The USPS plans to cut at least $3 billion in costs over the next two years, including $1 billion in air transportation costs saved by delivering packages through the ground transportation network earlier this year.

After this cooperation, UPS will become the main air cargo carrier of USPS. UPS CEO Carol B. Tomé said that UPS and USPS have jointly developed a mutually beneficial innovative solution that will effectively complement their unique, reliable and efficient integrated networks.

UPS announced in January that it plans to lay off 12,000 employees this year to compensate for the decline in revenue and package volume due to declines in sales, revenue and operating profits in multiple departments in 2023. It is expected that this new cooperation will help improve UPS's business difficulties in the future.

Editor ✎Rayna/

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