FedEx-USPS begin nationwide pact

by Canadian Shipper

FedEx Corporation has launched the air transport portion of its $7.2 billion contract with the U.S. Postal Service, announced in January, to carry express, priority and first-Class mail.

The contract will mean up to 3.3 million pounds of mail get transported on FedEx planes every day. Most of the mail will come through the company’s superhub at the Memphis International Airport.

FedEx has been working with the Postal Service since June, training their employees how to fill containers that are placed on FedEx’s aircraft. Also, in recent weeks, FedEx has tested transporting USPS shipments on selected routes.

USPS expects to save about $1 billion in air transportation costs while extending the market of its Express Mail next-day, and Priority two-day services.

Nearly 500 pilots, 250 aircraft mechanics and 1,200 cargo handlers have been hired by FedEx to service the $6.3 billion portion of the seven-year contract.

The first part, valued at $900 million, began in March with FedEx installing self-service drop-boxes at post office locations in Charlotte, N.C., and then Fort Lauderdale, Fla., with nationwide placement in July. By next year, 10,000 drop-boxes should be in front of post office locations.

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