USPS may Replace FEDEX, UPS as Air Carriers

FedEx said on Monday it could be in danger of losing the U.S. Postal Service as its largest customer according to an article that appears on the Knoxville Biz website.

Wayne Risher of the Commercial Appeal pens, "The financially strapped post office has informed FedEx and rival UPS that it will seek competitive proposals for air transportation services that are under contract to FedEx through September 2013."

FedEx said in an annual report filed with the U.S. Securities and Exchange Commission is quoted as saying, "Accordingly, upon the expiration of the current agreement, the transportation services we provide to the USPS could be transitioned, in whole or in part, to another provider. This would have a negative impact on our asset utilization and profitability."

Risher goes on to report, "FedEx was the Postal Service's top supplier in fiscal 2011, taking in nearly $1.5 billion, while UPS came in 11th at about $102 million, according to an annual report on top Postal Service suppliers by David P. Hendel of the Washington law firm Husch Blackwell."

UPS has provided airlift for some First Class and Priority Mail since 2006

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