UPS Expands Partnership with USPS for Air Cargo Contract

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UPS Expands Partnership with USPS for Air Cargo Contract
UPSUSPSAir Cargo
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The Atlanta shipping company said Monday that it had received an air cargo contract from the U.S. Postal Service that significantly expands an existing partnership between the two. UPS will move the majority of air cargo in the U.S. for the postal service following a transition period, according to UPS. USPS’s current air cargo contract with FedEx Corp. is set to expire in late September.

The Atlanta shipping company said Monday that it had received an air cargo contract from the U.S. Postal Service that significantly expands an existing partnership between the two. UPS will move the majority of air cargo in the U.S. for the postal service following a transition period, according to UPS . USPS ’s current air cargo contract with FedEx Corp. is set to expire in late September. The agency said in a statement that its contract with UPS will be for a minimum of five and a half years.

FedEx said in a regulatory filing that it wasn't able to reach an agreement on mutually beneficial terms to extend its contract with USPS. The company said that negotiations ended on Friday, after extensive talks. FedEx Express will continue to provide air transportation services domestically and to Puerto Rico until the contract expires on Sept. 2

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