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UPS wins air cargo contract with Postal Service, replaces FedEx

UPS will begin delivering for the USPS under a new contract, starting in September. ( More...

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WIllard Kramer 10
It's as simple as Dejoy has investments in UPS but none with Fedex. Kaching!!!

He bases his decisions on his wallet. from 2021:

The U.S. Postal Service will pay $120 million over the next five years to a major logistics contractor that Postmaster General Louis DeJoy previously helped lead and with which his family maintains financial ties, according to DeJoy’s financial disclosure statements.

The new contract will deepen the Postal Service’s relationship with XPO Logistics, where DeJoy served as supply chain chief executive from 2014 to 2015 after the company purchased New Breed Logistics, the trucking firm he owned for more than 30 years. Since he became postmaster general, DeJoy, DeJoy-controlled companies and his family foundation have divested between $65.4 million and $155.3 million worth of XPO shares, according to financial disclosures, foundation tax documents and securities filings

But DeJoy’s family businesses continue to lease four North Carolina office buildings to XPO, according to his financial disclosures and state property records.

The leases could generate up to $23.7 million in rent payments for the DeJoy businesses over the next decade, according to a person who shared details of the agreements with The Washington Post but spoke anonymously to discuss confidential financial arrangements. In 2018, when DeJoy sat on the company’s board, XPO reported similar figures with the Securities and Exchange Commission. The leases run until 2025 and can be extended until 2030, according to those filings.
Nooge 3
DeJoy is the "swamp "
Matha Goram 1
Interesting. What was the reason Dejoy couldn't be replaced?
dkenna 2
That decision is made by the Board of Governors, and since $$ does all the talking in those circles, he won’t be fired. (As long as they all get their cut from whatever scam DeJoy comes up with next) I’m still wondering why they bought Mercedes vans at $40k a piece. Hmm, nothing shady about that!
btweston 1
Yeah seems about right.
Keith Brown 2
I do a lot of shipping in and out (as a private individual, not a business, anymore at least) and almost all of it involves UPS anyway, for the the last few years, through SmartPost (or whatever they call it).. It depends on where you live but around here, FedEx has absolutely s*** the bed. I quit using one vendor because they wouldn't use any other service. See ya. Bye bye... As far as aviation though, nothing negative to say about either carrier as a former ATC, they were always easy to work with.
jgoedker 3
I think this headline is backwards. It should read FedEx finally sheds that pink elephant it's been hauling for twenty years. This article does a much better job of explaining why it now takes a week or more to get a package a few hundred miles when USPS gets its hands on it. If I were UPS, I wouldn't be gloating over this.
Mike G 3
Interesting. Most of my packages arrive via USPS. Most are next-day, or 2 day, delivery. Nearly always delivered on time. I'm horrified the article did such a poor job of explaining my experiences.
Nathan Cox 3
It’s still revenue though. In a tight airfreight market, a stable supply of $ is VERY important. FedEx is loosing market share. Unfortunately for them, I see furloughs in their future.
jgoedker 3
Losing money on every load is not "Stable $. Furloughs are much preferred over bankruptcy.
Shirley Loebel 2
I just used UPS to send small packets, and it cost $36 for what I could have paid $8 at the post office; the only difference was that UPS has tracking; and then they send it to the post office to be mailed! Makes no sense; it was pouring rain or I would have left, to mail at the post office, Will not go back to UPS.
matt jensen 3
They are all expensive. USPS has tracking too and that works for us
Matha Goram 1
Mixed feelings because I had "business" experience with all three players for nearly 30 years. My first exposure to FedEx was when I witnessed an Intergraph service technician revamp a VAX 11-750 "board by board" with successive overnight deliveries from Huntsville to Baton Rouge for a week. Currently, I have a PO Box with USPS specified street address. FedEx will deliver, but UPS cannot. (It gets stuck at the UPS McKinney TX center for delivery to a Plano TX post office with a street address for delivery). To add insult to injury, the packages get recalled by the vendor and replacements are sent via FedEx. (Of course, the vendor does not give the customer the option to designate a specific carrier - probably using an older version of logistics app where the cheaper carrier is selected for the benefit of the customer but in the long term leaves an undesirable impression).
Lance Neward 1
Frankly, I don't care WHO carries and delivers my mail, as long as it's done in a reasonable time and with reasonable care, at a reasonable price. All of those "reasonables" are subjects of judgement, of course. I'm old enough to remember sending letters for $0.03, but now I can't buy the envelope for that; prices go up, rarely down.

I use USPS a lot, and I don't care if their vehicles are Ford, GM, custom built (as some are) or any other manufacturer, as long as my mail is handled reasonably quickly and with reasonable care. Likewise, I don't care what outside carrier USPS uses, as long as the arrangement works reasonably well.

I've been constantly amazed that the USPS can handle the billions of pieces of mail each year that they do and the percentage of missteps is quite small. Have I had problems? Yes, but rarely and virtually always minor.

DeJoy must be doing a good enough job to be appointed by a Republican and retained by a Democrat.
dkenna 0
Well, it doesn’t matter what the democrats think about DeJoy; Biden (or any other president) has no power to fire him. As for the vehicles they drive; i’d like to see an American manufacturer provide the vehicles (Ford I believe is to deliver almost 10,000 vehicles) the Mercedes vans were still made here in the US, but obvious a foreign owned company. I agree the USPS does a good job considering how much they handle. I do however think there is a conflict of interest with DeJoy and his other business dealings which seem to be making the USPS decline in their services over the past few years.
J H 1
As I see it, the problem is from this stated quote in the article. FedEx said in a statement.
“We have long said we would extend the contract with the USPS if we could agree to commercial terms in the best interests of FedEx shareholders...

So it seems shareholders are holding the reins not employees and not customers. **sarcasm alert**. Well how important could those groups be to profitability?! ** sarcasm ends here **.

Just for that reason I would say it's a good move for USPS to go with UPS.
rdlink 0
Another downgrade for the postal service. UPS really, really sucks.
Robert Allen 1
FedEx worse...imho


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