FedEx has been providing express air transportation for the U.S. Postal Service since 2001. The current agreement was concluded on 23 April 2013 and was to last until 2020. MEMPHIS, Tenn., Feb. 23, 2017 /PRNewswire/ — FedEx Corp. (NYSE: FDX) today announced that its subsidiary FedEx Express has entered into an extension of its express air transportation contract with the U.S. Postal Service, originally concluded on April 23, 2013. “We are pleased to extend this agreement and continue the exceptional service that FedEx Express has provided to the USPS for more than 16 years,” said David J. Bronczek, President and Chief Operating Officer of FedEx Corporation.

“This contract provides USPS with the operational reliability and flexibility it expects from FedEx.” FedEx also said it was preparing to withdraw about 5,000 drop boxes in the United States. Postal locations in approximately 340 metropolitan areas, under a separate agreement that expired in June. To ensure that our website works well for all users, the SEC monitors the frequency of requests for content SEC.gov to ensure that automated searches do not interfere with other people`s ability to access SEC.gov content. We reserve the right to block IP addresses that make excessive requests. Current policies limit users to a total of no more than 10 requests per second, regardless of the number of computers used to send requests. By using this website, you agree to security monitoring and auditing. For security reasons and to ensure that the public service remains accessible to users, this state computer system uses network traffic monitoring programs to identify unauthorized attempts to upload or modify information, or otherwise cause damage, including attempts to deny service to users. The postal service has warned FedEx that it will seek bids for the contract after it expires in September 2013, FedEx said in a regulatory filing Monday night.

“UPS`s current contract is overshadowed by FedEx and would give the company a solid increase in earnings,” she said. The lock is automatically unlocked while waiting 10 minutes. If the maximum rate of eligible CFC claims continues to be exceeded during the expiration period, the duration of the expiration period is extended. To ensure equitable access for all users, please reduce the rate of your requests and review SEC.gov after the 10-minute expiration time. “The timing of the contract expiration — one year after the expected announcement of FedEx`s restructuring — gives FedEx the ability to plan for potential business losses and the resulting impact on network utilization,” analysts at Robert W. Baird, led by Benjamin Hartford, wrote in a note. If a user or application sends more than 10 requests per second, other requests from the IP address may be limited for a short time. Once the request rate has fallen below the threshold for 10 minutes, the user can continue to access the content on SEC.gov. This SEC practice is designed to limit excessive automated searches on SEC.gov and is not intended or should not affect anyone browsing the site SEC.gov. The postal service said in a statement Thursday that “temporary effects may occur on the service,” after which the agency will determine what the causes are and what needs to be corrected.

(Reuters) – Package delivery company FedEx Corp FDX. N risks losing its business with the U.S. Postal Service, worth more than $1 billion a year, if the besieged Postal Service bids the contract next year. FedEx declined to comment on the reported changes, but made it clear that it relies on the postal service in regulatory filings. Risks to FedEx`s business due to COVID-19 include “changes in the commercial and financial strength of the U.S. Postal Service,” the annual financial report said. . FedEx plays an important role at the airport, accounting for about 38% of the revenue that keeps the airport open to cargo and passenger airlines. Shares of Memphis, Tennessee-based FedEx fell 0.9 percent to $91.04 on the New York Stock Exchange in the afternoon, up 9 percent year-to-date.

FedEx, UPS and other carriers hand over a portion of their deliveries to the postal service for the last mile of delivery. The future of FedEx involves less of these transfers. In 2019, it announced that it would purchase nearly 2 million parcels a day, which it would transmit to the postal service via its SmartPost service. FedEx received more than $2 billion in postal service payments in fiscal 2019, according to a david Hendel study of Husch Blackwell LLP`s postal contracting practice. That was about four times more salary than the second supplier. In a statement, the new postmaster general, Louis DeJoy, said the agency`s unsustainable financial situation was “due to a significant drop in letter volume and a flawed business model.” He also pointed to the billions the agency has spent on overtime costs, without “significant improvement in our service performance scores.” “By flying some of the fastest growing and best-performing postal products, FedEx Express continues to provide essential services to the postal service and postal customers,” FedEx spokesperson Jess Bunn said Tuesday. “We look forward to continuing our excellent relationship.” Our Standards: Thomson Reuters` Principles of Trust. The postal service posted a net loss of $4.5 billion in its last published quarter, with a “significant impact” of the COVID-19 pandemic expected for the rest of the year, as announced in May.

Internal postal memos obtained by the Washington Post and other news outlets say the agency will ban overtime and try to reduce transportation costs such as delays and additional delivery trips. . UPS, which continues to use the postal service for its SurePost deliveries, could give rival FedEx an edge if it tries to win that valuable air transport contract once the current deal expires, Maciuba said. Nevertheless, the postal service`s current agreements with FedEx offer important business for both parties, Sackler noted. This paves the way for the biggest competitor United Parcel Service UPS. N to take over the business – domestic air transport for first class, priority and express mail – that FedEx has owned since 2000. The postal contract helps Memphis because FedEx is leveraging additional mail volume to maximize the efficiency of its domestic air fleet and global hub at Memphis International Airport. .