UPS replaces FedEx to become U.S. Postal Service's primary air cargo provider

[BumRushDaShow]

Source: CNBC

Published Mon, Apr 1 20246:50 AM EDTUpdated An Hour Ago


United Parcel Service will become the United States Postal Service’s (USPS) primary air cargo provider, the company said on Monday, as rival FedEx walked away after pressing for a better new contract with the U.S. agency.

UPS shares rose 1.4% before the bell while FedEx stock fell 1.6%. Financial terms of the contract, which is set to take effect after a “transition period”, were not disclosed. UPS said the postal service’s award was “significant.”

USPS is the largest customer for FedEx’s air-based Express segment. The company has said it was prepared to walk away from the 22-year relationship if the terms of the existing contract, set to expire on Sept. 29, did not improve.

FedEx, which has been on a drive to rein in expenses to combat sagging freight demand and a bloated cost structure, said on Monday it would not extend its contract with USPS. “The parties were unable to reach agreement on mutually beneficial terms to extend the contract,” FedEx said in a securities filing.

Read more: https://www.cnbc.com/2024/04/01/ups-to-become-uspss-primary-air-cargo-provider-replacing-fedex.html

[cstanleytech]

1. The lifejacket that UPS has been needing since business with Amazon has been declining.

[Tetrachloride]

2. there's a bunch of new Fed Ex buildings near me this past few years

[AllyCat]

3. Union workers.

Plus, FedEx keeps delivering packages to the wrong places.

[PlutosHeart]

4. Wonder why that is

as just the other day a two day package went from south of us to St. Paul MN up to Fargo ND. I mean really! That is nuts. It also took 10 days for my pet food to arrive.

[BlueKota]

5. Fed Ex has delivered stuff I ordered to the wrong place a few times.

The USPS delivers things to the wrong address on a frequent basis. I am constantly getting my neighbors mail and they get mine. Luckily most of my neighbors are pretty honest and either bring it to me, or inform the carrier it was mis-delivered and I do the same for them. I had to start putting taped sticky notes on saying it was delivered to the wrong address, if I don't know the neighbor, or the address is not within a reasonable walking distance. I live on a very long road, and don't drive anymore.

A couple times previously they put it back in my box with a postage due notice. They must not have seen my writing on the envelope that it wasn't my mail. I make sure they can't miss it now.

Knock on wood , have not had the same negative experiences with UPS. Their drivers even ring the doorbell to let you know there is a package waiting for you.

[republianmushroom]

6. I favor UPS over Fedex,, myself.

[Scruffy1]

7. The air contract has been switched before with no effect on service.

[BumRushDaShow]

8. The government usually does 10-year contracts like this for parcel carriers

in this case, for USPS's own air handling, but in other cases, those of us in or who were in the federal government, always dealt with revolving door contracts for which carriers we could use to ship boxes, etc. (with some exceptions).

[Novara]

9. UPS still can't find my house although it was built in 1951.

And I live in a city, not in the boonies.

Honestly? I'd be happier if they got less business.

They were to deliver a package to my office on Friday (I don't have them deliver to my home because they can't find it) and it was loaded on the truck for delivery that morning. Then, they decided that some businesses close on good Friday so they just wouldn't even bother. My company was open; they didn't even try. They already had it on the truck. But they just decided not to deliver it Friday and made an excuse.

[toad-eye]

10. Left my PRS in the sun in Arizona

I ordered a beautiful PRS from Sweetwater.
Saw that it was shipped via Fedex.My shipping instructions for everyone are to leave it in our shady carport next to the door. Cooler and safer.
Once I knew it was out for delivery, due to prior experience, I parked in my living room where I could see our front South-facing door.
And waited.
They left my favorite guitar leaning against the wall adjacent to our front door,
in the Valley, in the Summer, in the sun in Arizona. WTH?
Got it in the house right away.
Could feel the heat rising off it.
All good tho. Love that thing.
Good thing I was home.

To be fair, I had a Mahogany body 12 string elect/acoustic shipped straight from Indonesia via DHS that actually arrived with a partially wet box.
At least it was in the carport.
Thankfully it was wrapped in plastic inside the box, and it too is all good.