AssetID: 53611781
Headline: UNCAPTIONED: UPS to Become US Postal Service's Main Air Cargo Provider
Caption: UPS to Become US Postal Service's Main Air Cargo Provider. On April 1, United Parcel Service announced that it will replace FedEx as the primary air cargo provider for the USPS, CNBC reports. FedEx is walking away from a 22-year partnership after failing to secure a better contract with the agency. In fiscal year 2023, USPS paid FedEx $1.73 billion for its services, down from the $2.4 billion FedEx received in fiscal year 2020. The decrease in payments was partially due to the postal service using more economical trucks in place of planes, CNBC reports. "The parties were unable to reach agreement on mutually beneficial terms to extend the contract.", FedEx, via securities filing. Since FedEx will lose nearly $2 billion in annual business from letting go of the contract, hundreds of pilots will likely lose their jobs, CNBC reports. Following the announcement, UPS shares increased 1.4% while FedEx stock dropped 1.6%. FedEx's current contract is set to expire on Sept. 29. THIS VIDEO MUST NOT BE EDITED FOR LENGTH TO COMBINE WITH OTHER CONTENT
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