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UPS Secures Major Contract as Primary Air Cargo Provider for U.S. Postal Service

a large jetliner sitting on top of an airport tarmac

UPS has landed a significant deal with the United States Postal Service (USPS), marking a substantial expansion of their existing partnership. The Atlanta-based shipping giant announced on Monday that it will take over the majority of air cargo operations for USPS, following a transition period.

This development comes as USPS’s current air cargo contract with FedEx Corp. nears its expiration in late September.

FedEx, in a regulatory filing, stated that negotiations to extend the contract on mutually beneficial terms had ended without an agreement. FedEx has been the main carrier for 2 decades. As a result, FedEx Express will continue its air transportation services domestically and to Puerto Rico until September 29. Financial details of the UPS-USPS deal were not disclosed.