The FedEx contract ends in September after more than 20 years
FedEx said it was unable to reach an agreement with the U.S. Postal Service.
The U.S. Postal Service has tapped United Parcel Service as its primary partner for moving cargo by air, replacing FedEx, which had provided the service for more than two decades.
The new contract between UPS and USPS will begin in late September and run through at least March 2030, the Postal Service said Monday. Under the agreement, UPS will handle domestic air transportation for USPS's first-class mail, priority mail express, and priority mail.
FedEx and USPS had been in talks to extend the current contract, but were unable to reach an agreement. The deal expires Sept. 29 and the USPS was the largest customer for FedEx Express.
The change in providers reflects both shifts in the package-delivery landscape and long-running efforts by the USPS to cut costs. The quasigovernmental agency launched a long-range transformation plan in March 2021 that called for making national and local transportation more efficient.
Those efforts have included closing facilities and diverting more parcels to be delivered by truck instead of plane, which typically is more expensive. The USPS said it is seeking to cut its transportation costs by $3 billion over the next two years, adding that it has already achieved $1 billion in airfreight savings. More than 95% of its first-class letters and packages are moved by its ground network, the agency said.
Priority Mail Express promises deliveries as soon as the next day while Priority Mail typically gets delivered in one to three business days. Shippers use First-Class Mail, which offers deliveries in two to five business days, for mail and packages under a pound with contents that have a low insured value. Priority Mail is often used for heavier packages with higher-value contents.
For the fiscal year ended September, USPS said its expenses for air transportation fell 16% from the year earlier to $3.1 billion. It doesn't own or operate any planes. USPS also contracts with other air carriers to transport its cargo and has recently pulled back some of these contracts.
Losing the contract deals a blow to FedEx’s revenue. FedEx received $1.9 billion from USPS for the year ended September 2022, down $236 million from the previous year, according to data compiled by David Hendel, a partner at law firm Culhane Meadows.
FDX -3.32% UPS -0.68%
In recent years, the USPS contract became a drag on earnings for FedEx, which has high fixed costs from operating an airline despite more goods being diverted to highways. FedEx Chief Customer Officer Brie Carere said as recently as last month that the company was making progress on renegotiating the contract on more favorable terms.
“Over time, our respective strategies have shifted as we transform our networks and operations for the future,” said a FedEx spokeswoman. “We have long said we would extend the contract with the USPS if we could agree to commercial terms in the best interests of FedEx shareholders.”
FedEx, based in Memphis, Tenn., has been retooling operations in a bid to cut costs and simplify its network. A big chunk of those efforts include combining its Express and Ground delivery units, changing its decades-old operating structure. It has also parked planes and laid off workers, spurred in part by an industry downturn in parcel volumes.
The company plans to eliminate costs it had in place to support the Postal Service contract after it ends.
Shares of FedEx fell more than 3% in afternoon trading. UPS shares, which traded higher premarket, were down about 1%.
美国邮政服务（USPS）已选择联合包裹服务（UPS）作为其主要的空运货物提供商，取代了在此职能上服务了二十多年的联邦快递（FedEx）。邮政服务部于周一宣布，UPS和USPS之间新的合同将于九月底开始，并持续至2030年3月。
根据协议，UPS将负责处理USPS的头等邮件、特快邮件和优先邮件的国内航空运输。这一更换供应商的决定反映了包裹运输领域的变化以及USPS长期以来削减成本的努力。USPS于2021年3月启动了一个长期的转型计划，旨在提高国家和地方运输的效率。这些努力包括关闭设施并将更多包裹从飞机改为卡车运输，前者通常更昂贵。USPS表示，计划在未来两年内削减30亿美元的运输成本，目前已经实现了10亿美元的空运节省。该机构表示，超过95%的头等信件和包裹通过地面网络运输。特快邮件承诺在第二天即可送达，而优先邮件通常在一到三个工作日内送达。发货人使用头等邮件来发送重量不到一磅且保险价值较低的邮件和包裹，而优先邮件通常用于重量更大、价值较高的包裹。这一将UPS作为主要的空运货物提供商战略性转变，旨在提高邮件运输的效率并降低总体成本。
美国邮政服务（USPS）表示，截至9月份的财政年度，其空运费用较前一年下降了16%，降至31亿美元。USPS不拥有或运营任何飞机，而是与其他航空公司签订合同来运输其货物，而且最近取消部分了合同。联邦快递（FedEx）失去此项合作合同，对其收入造成了打击。根据律师事务所Culhane Meadows的合伙人David Hendel整理的数据，联邦快递在截至2022年9月的一年中从USPS获得了19亿美元，较上一年减少了2.36亿美元。近年来，USPS的合同拖累了联邦快递收益，尽管更多的货物被转移到公路上，但联邦快递的固定成本仍然很高。联邦快递首席客户官Brie Carere最近表示，公司正在就更有利于双方的合同进行重新谈判。“随着时间的推移，我们各自的战略发生了变化，我们正在为未来改造我们的网络和运营，”联邦快递的一位发言人表示。“我们一直说，如果我们能够在联邦快递股东的最佳利益上达成商业条件，我们将延长与USPS的合同。”总部位于田纳西州孟菲斯的联邦快递一直在重新调整运营，以削减成本并简化其网络。这些努力包括合并其快递和陆运交付部门，改变其几十年来的运营结构。受行业包裹量下降的影响，该公司还停飞了部分飞机并裁员。Fedex公司计划在合同结束,降低为支持邮政服务的开支。联邦快递的股价在下午交易中下跌了超过3%。而UPS的股价在虽然在盘前交易中有上涨，但最终下跌了约1%。
文章来源
Postal Service Picks UPS to Move Air Cargo, Replacing FedEx
https://www.wsj.com/business/logistics/fedex-to-let-contract-with-usps-lapse-ups-strikes-deal-dbe44ce4?mod=logistics_news_article_pos2
中文翻译仅供参考。