USPS, FedEx Agree to New Contract for Air Mail Transportation

Share this content:

FedEx Express, a subsidiary of FedEx Corp., and the U.S. Postal Service entered into a new agreement for domestic air transportation of mail through 2013.

The USPS and FedEx Express signed a seven-year contract in 2001 for airport-to-airport delivery of Priority Mail, Express Mail and First-Class Mail within the United States.

The new contract, announced on Aug. 1, will replace the final two years of that contract and a new seven-year agreement will commence in October of 2006. The current contract was set to expire in August 2008.

The agreement is expected to generate about $8 billion in revenue over the life of the agreement.

Memphis, TN-based FedEx Express will continue to fly over 4 million pounds of U.S. mail every business day -- the equivalent of 40 wide-body DC10 aircraft -- using existing aircraft and facilities.

Postmaster General John E. Potter said the relationship benefits postal customers by allowing the agency to maintain a high service standard while keeping costs affordable.

The 2001 retail agreement, giving FedEx the opportunity to place FedEx self-service collection boxes on postal property, is not affected by the announcement. That portion of the contract expires in 2009.

This is the second enhanced business relationship the USPS has announced with an air carrier this summer.

In July USPS's new contract with UPS began.

That agreement called for UPS, Atlanta, to transport primarily First Class and Priority Mail each week to and from 98 U.S. cities. Previously, UPS provided the USPS with mail transportation to and from 16 U.S. cities.

close

Next Article in Direct Mail

Sign up to our newsletters

Company of the Week

We recently were named B2B Magazine's Direct Marketing Agency of the Year, and with good reason: We make real, measureable, positive change happen for our clients. A full-service agency founded in 1974, Bader Rutter expertly helps you get the right message to the right audience at the right time through the right channels. As we engage our clients' audiences along their journey, direct marketing (email, direct mail, phone, SMS) and behavioral marketing (SEM, retargeting, contextual) channels deliver information relevant to the needs of each stage. We are experts at implementing and leveraging marketing technologies such as CRM and marketing automation in order to synchronize sales and marketing communications. Our team of architects and activators plan, execute, measure and adjust in real time to ensure the strategy is working as needed and change things if it's not.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above