FedEx signs new 7 year contract with USPS worth $10.5 billion

Fedex logo

FedEx Corp. (NYSE: FDX) today announced that its FedEx Express subsidiary has entered into a new express air transportation contract with the United States Postal Service. The current contract ends in September 2013, and the new contract will begin in October 2013.

Under this seven-year agreement, valued at approximately $10.5 billion, FedEx Express will provide airport-to-airport transportation of USPS Express Mail and Priority Mail within the United States.

“FedEx Express will continue the outstanding service that we have provided to the USPS for the past 12 years under this new agreement,” said David J. Bronczek, president and chief executive officer of FedEx Express. “This contract provides enhanced value and additional flexibility allowing the USPS to respond to possible changes. We look forward to continuing our successful business relationship with the USPS.”

  • Bob

    You have got to be fuc*ing sh*ting me ! Never ever was it like this when we used the airlines and better yet, our own planes. A travesty. Late Late Late and the PO pays…wow, a crime.

    • D

      They been doing this stuff forever not new. Fedex and ups even hire other company’s to haul there stuff.

  • Qianna Barnes


  • john

    Great Job USPS , spending billions while loosing billons , sounds like our government.

  • CES

    USPS is not allowed to fly parcels on commercial airlines since 9/11(security) nor is it allowed to purchase aircraft (unfair competition). The planes that had the USPS logo on them were contracted from a private supplier. Priority parcels are the only hope of USPS surviving and they must be flown to be delivered in 2-3 days.

    • postalnews

      The airlines weren’t allowed to carry mail immediately after 9/11, but that restriction was lifted years ago- they carry lots of mail these days. The USPS is probably the biggest single customer the airlines have. You are correct though, about the USPS not owning any planes- people remember planes with the USPS logo, but the USPS didn’t own them.

  • CES

    USPS can fly mail on Commercial air but not individual packages over 16 ounces unless they are screened by TSA (dogs). Since TSA does not provide this service at 99% of airports, the vast majority of Priority Parcels must be flown by freight carriers. There are only two such carriers (UPS and FDX) that can handle USPS’s volume.

    • postalnews

      Do you have a source? I haven’t been able to find anything that corroborates what you say.

  • Norbu Dadul

    Republicans and the Republicans appointed to the BOG by Republicans and Obama tout competition–but they have saddled the USPS into a contract that gives FedEx and UPS and Pitney Bowes a below cost contract.

    So USPS is in the red and its competitors are able to funnel millions of dollars to Congress to privatize the Post Office,

    Pitney Bowes operates some 41 privatized bulk mail centers==it has a customer satisfaction rating below USPS but–

    USPS cannot pay off Congress and they can!

  • Gregg Grubbs

    It’s like the Eagles song”Business as Usual”.The USPS powers that be continue to carry on with sh** like this fedex contract,Village PO’s,plant closings,reduction in window service hours,$3 million dollar seminars,overpaid and underworked management etc… And the list could go on forever.Hey,Mr.Donawho just wants 5 day and a bailout!!