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FedEx’s network poised for a shakeup after US Postal Service split

April 11, 2024

READ FULL ARTICLE AT » Supply Chain Dive

Daytime flight operations and pilot staffing are likely targets for reductions once the air transportation contract expires in September, experts say.

FedEx’s air cargo network may look much different come October, as its Express unit prepares for life without the U.S. Postal Service as a top customer.

Rival UPS will take over as the Postal Service’s primary air cargo transportation provider under a contract being implemented Sept. 30, the day after the agency’s deal with FedEx for airport-to-airport shipping expires. FedEx said in a statement it will make adjustments to its network once the contract ends, such as cutting structural costs currently in place to support the Postal Service’s volume.

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