United States Postal Service

Following the news that UPS has been awarded what it labeled a “significant air cargo contract” by the United States Postal Service (USPS), which used to be handled by its biggest competitor, FedEx, there has been no shortage of feedback and opinions on the development.

Atlanta-based global freight transportation and logistics services provider UPS said earlier today it has been awarded what it labeled a “significant air cargo contract” by the United States Postal Service (USPS). UPS officials said that this contract takes effect immediately while also expanding the existing relationship between UPS and USPS. And the company added that after a transition period, UPS will be the primary air cargo provider for USPS, moving the majority of USPS’s United States air cargo.

The current state of the business relationship between Memphis-based freight transportation and logistics services provider FedEx and the United States Postal Service (USPS) received a fair amount of attention on the former’s fiscal second quarter earnings call late last year.

ShipMatrix observed that based on its data of millions of parcels shipped during Cyber Week pointed to online orders being delivered “at levels better than in the last several years,” with the respective OTPs for FedEx, UPS, and the USPS, coming in at 97.8%, 98.0%, and 95.2%, respectively.

The USPS cited various investments it has made, in advance of the 2023 Peak Season, including: hiring 10,000 seasonal employees; utilizing 348 new package sorting machines; increasing daily processing capacity to approximately 70 million; moving 95% of volume via more reliable ground transportation, for First Class Mail and more than 95% of First-Class packages; and its new USPS Ground Advantage Shipping Service