Thu. Nov 21st, 2024

Next steps in FedEx-USPS business relationship are uncertain with contract set to expire at end of September

January 12, 2024

READ FULL ARTICLE AT » Logistics Management

The current state of the business relationship between Memphis-based freight transportation and logistics services provider FedEx and the United States Postal Service (USPS) received a fair amount of attention on the former’s fiscal second quarter earnings call late last year.

That was made clear on the call, with FedEx President and CEO Raj Subramaniam explaining that 2023 was what he called a “particularly difficult year” for the company’s Express unit, which saw revenue fall 6% annually to $10.2 billion, with operating income off 60% to $137 million. One reason for the loss, he explained, was related to USPS’s strategy to shift more of its volume handled by FedEx from air to ground, which Subramaniam viewed as a headwind.

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