UPS will become the primary air cargo provider for the U.S. Postal Service, according to the Associated Press. The Atlanta shipping company said today that it received an air cargo contract from the U.S. Postal Service that significantly expands an existing partnership between the two.
UPS will move the majority of air cargo in the U.S. for the postal service following a transition period. Financial terms of the deal were not disclosed.
USPS’s current air cargo contract with FedEx Corp. is set to expire in late September.
FedEx said in a regulatory filing that it wasn’t able to reach an agreement on mutually beneficial terms to extend its contract with USPS. The company said that negotiations ended on Friday, after extensive talks.
FedEx Express will continue to provide air transportation services domestically and to Puerto Rico until the contract expires on Sept. 29.
