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FedEx's partnership with the United States Postal Service will soon end, with United Parcel Service set to take over as primary air cargo provider later in 2024.
FedEx's deal with the USPS expires on September 29. According to CNBC, the delivery company had previously expressed that it would not continue its relationship with the USPS without favorable terms for a new contract. It's estimated that FedEx's work with the USPS had brought in almost $2 billion in business yearly.
Now, after over 20 years, that lucrative relationship is coming to a close.
“The parties were unable to reach agreement on mutually beneficial terms to extend the contract,” FedEx said in a securities filing on April 1.
UPS will take over FedEx's previous role with the USPS, although the terms of that deal have not been released, described only by UPS as "significant."
Meanwhile, FedEx says that it will work to adjust its network to account for the loss of this contract in the months to come.
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