Logistics provider UPS has been awarded what the company terms a ‘significant air cargo contract’ by the United States Postal Service (USPS), effective immediately, which will see UPS become the postal service’s primary air cargo provider. USPS’ new contract replaces an agreement previous provider FedEx, which had provided air mail transportation services for more than twenty years.
“Together UPS and USPS have developed an innovative solution that is mutually beneficial and complements our unique, reliable and efficient integrated network,” said UPS Chief Executive Officer Carol B. Tomé. Following a transition period, UPS will now move the majority of USPS air cargo in the US.
FedEx has previously been in negotiations to extend its agreement to provide domestic transportation services to the USPS, which ended unsuccessfully on March 29 2024. A FedEx statement explained that although “mutually agreeable terms” in the “best interest of FedEx shareholders” had not been met, the company “remains committed to delivering outstanding service through the completion of [its] contract in September”.
The FedEx Master Executive Council of the Air Line Pilots Association International (ALPA) expressed disappointment at the decision, stating: “FedEx management continues to threaten every FedEx employee’s job security and quality of life. The statement continued: “FedEx continues to spend billions in stock buybacks while simultaneously announcing layoffs of employees who’ve helped build it into the brand it is today”.
UPS awarded ASPS air cargo contract
