Effective September 30, 2024, the United States Postal Service is changing its service provider for operating mail flights. In the future, Fedex will no longer be the main partner, but UPS.

For around 20 years, Federal Express served as the primary partner for letters and parcels for the US Postal Service. The competitor UPS was able to prevail in a tender. Their cargo flight operations will take over the flight services for the United States Postal Service previously provided by Fedex, effective September 30, 2024.

Only the existing Fedex services are affected by this change. Contracts with other cargo airlines remain unaffected. The contract duration with UPS was communicated as 5,5 years. Furthermore, an option for an extension was contractually agreed. Fedex regrets the decision of the United States Postal Service, but at the same time admits that their respective strategies have changed over the last 20 years. It was not possible to agree on a continuation.

The US Postal Service hopes that the new cooperation with UPS will help save costs. The aim is to save around three billion US dollars within the next two years, of which one billion US dollars will come from the air freight segment alone. A statement suggests that UPS is cheaper than Fedex because the new contract would make a significant contribution to achieving the savings goals it has set itself.

The agreement provides that UPS will carry the majority of USPS mail and package shipments within the United States of America. Other providers will continue to operate on behalf of the postal service, especially in remote regions. In the future, the lion's share will go to UPS's cargo airlines.