The U.S. Postal Service plans to shift daily air cargo volumes to UPS before the contract with FedEx expires in September to ensure no service interruption for customers heading into the busy holiday shipping season, the agency and company officials said Tuesday.
UPS’ (NYSE: UPS) ability to leverage its integrated air-and-ground network and bypass its main sort hub in Louisville, Kentucky, will enable the integrated express carrier to better profit from transporting domestic airmail for the U.S. Postal Service than its predecessor, executives said during an earnings briefing for analysts.
Atlanta-based UPS wrested the Postal Service’s primary air cargo business from FedEx earlier this month and is working to transition all the first-class mail, Priority Mail and Priority Express volume to its network before the FedEx (NYSE: FDX) contract ends Sept. 29, management said.