The FedEx agreement with the US Postal Service extends their alliance for the next seven years, and provides significant benefits to both parties.
The Postal Service locks in its main air transportation network including the unique operating efficiencies and level of service it needs to support its business objectives for Priority Mail. The growth of Priority Mail is a key element in the USPS’s strategic refocus to develop its parcel business along with the deployment of state of the art scanning technology and acquisition of a new delivery fleet designed for parcel and mail delivery. Priority Mail is a major USPS success story in today’s burgeoning eCommerce marketplace.
FedEx maintains a key customer and revenue stream, and the postal volume supports its operating efficiencies for the air and hub operations.
A “Win Win” for both partners.