UPS Secures Role as Primary Air Cargo Provider for USPS
The new contract with UPS, effective immediately, marks a significant shift in USPS's air cargo operations as FedEx's current contract nears its expiration.
- UPS has been awarded a significant air cargo contract by the United States Postal Service, becoming the primary provider.
- The contract between UPS and USPS is set to last for a minimum of five and a half years, starting on September 30, 2024.
- FedEx, the current primary air cargo provider for USPS, will see its contract expire on September 29, 2024, after negotiations to extend it failed.
- The USPS aims to optimize and improve transportation efficiency as part of its Delivering for America plan, targeting $3 billion in overall transportation cost reductions over the next two years.
- Global air cargo demand has been rising, with an 18.4% increase in cargo ton-kilometers in January compared to the previous year.
USA TODAY 
ABC News 