USPS-FedEx Transportation Network Begins Today

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The U.S. Postal Service and FedEx Corp. today begin a joint operation aimed at providing more consistent and reliable delivery.

Under a seven-year agreement reached in January, FedEx Express will provide air transportation for most of the USPS' Express Mail, Priority Mail and First-Class Mail that cannot travel solely by surface postal services.

The shared network expands the size of the USPS' air fleet and changes the fleet's nature, bringing efficiencies that will save money and increase service performance.

FedEx Express is providing about 3.5 million pounds of airlift capacity daily. The USPS will have access to 770 FedEx aircraft. There are 338 jets, of which 288 are wide bodies. FedEx aircraft are carrying mostly unitized shipments, presorted by the postal service into sacks, trays, tubs or containers. Many shipments are being sent via FedEx aircraft that are usually idle during the day.

During the seven years of the deal, the USPS expects to save about $1.3 billion in air transportation costs and more than double the market reach of its Express Mail next-day and Priority two-day services.

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