fdxbusdriver

DHL, USPS, FedEx to Cooperate

DHL signed a major air freight agreement with the United States Postal Service.

Deutsche Post World Net plans to announce details of the agreement via webcast from Bonn on Wednesday.

The agreement calls for FedEx to carry some air freight on behalf of the USPS. Sources familiar with the agreement said FedEx will take over some unprofitable air routes initially and increase the service gradually.

DPWN Chief Executive Officer Frank Appel is also expected to announce the closing of a quarter of DHL's U.S. stations and the elimination of hundreds of jobs. DHL is expected to redirect its growth efforts on its international service.

FedEx and DHL declined to comment and the USPS was non-committal about the venture.

In January 2001, FedEx and the Postal Service announced two major agreements. One called for FedEx Express to provide airport-to-airport movement of containers holding around 3.5 million pounds of Priority Mail, Express Mail and First Class Mail. That agreement was modified in 2006 to run through 2013. The other part of the agreement involved the drop off of packages at FedEx Drop Boxes nationwide. The venture is expected to generate approximately $8 billion over the life of the agreement.

The USPS declined to say how much it pays FedEx annually.

Robert W. Moorman

http://www.aircargoworld.com/break_news/05272008c.htm

MX727

Just a bit outside.....

Albief15

USPS, UPS...what's the difference?

Good for Brown. While it would be nice to have the business at FedEx, it is now apparent the majority of the market is to be divided between two carriers, not three. I only hope the ABX/Astar guys find a way to keeping working... It appears DHL is largely stepping back from North America.

Nashmd11

You guys already have the USPS contract. I'm surprised you didn't get this one. And the USPS is way larger than this.

UPSAv8tr

Nash,
How much larger is it really? We'll get 1 Billion/year for 10 years. I know the Fedex deal is larger but not by much.

Can anyone give me the exact figures for the FedEx/USPS deal?

A300_Driver

They are just about the same:

FedEx, USPS Renew Delivery Deal
from Reuters News Wire
CHICAGO (Reuters) - Package-delivery company FedEx Corp. (FDX.N) and the U.S. Postal Service on Tuesday said they had renewed through 2013 an agreement for FedEx's FedEx Express unit to transport domestic mail by air.

The contract, expected to generate about $8 billion in revenue over its seven-year life span, calls for Memphis, Tennessee-based FedEx's express delivery unit to transport about 4 million pounds (1.814 million kilograms) of mail between U.S. airports each day.

The deal comes just over a month after FedEx's main rival, United Parcel Service Inc. (UPS.N), announced it had a deal with the U.S. Postal Service increasing the amount of packages it would deliver to more than $100 million annually. UPS, the world's largest package delivery company, said at the time that it would seek to gain more business from the postal service over time.

FedEx has been far ahead of its rival in hauling packages for the postal service, carrying 1 billion pounds of mail in 2005 and generating revenue of around $1.3 billion.

UPSAv8tr

Thanks A300!

Nashmd11

My buddy at FDX heard years ago that the USPS contract equals 30 FULL
MD11's a day.

Nashmd11

According to tonight's WSJ, the USPS contract with FDX is worth 1.6 billion a year. So were 2/3's the way there.