UPS just signed a major deal with the U.S. Postal Service and ends a 20-year relationship with FedEx

It is THE beginning of A new Partnership between THE WE. Postal Service And UPS — but he ends A long term relationship with rival carrier FedEx.

THE USPS said on Monday that UPS would be NOW be It is primary air cargo supplier After FedEx had stood In THE position For on two decades.

"This price East effective immediately And very expands THE existing relationship between THE two organizations”, UPS said In A business release. "Following A transition period, UPS will become THE USPS primary air cargo supplier And move THE majority of USPS air cargo In THE United States."

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UPS called THE Partnership with THE USPS "mutually beneficial" as he goals has smooth out both the organization Already "integrated network."

THE exact financial terms of THE new Partnership to have not has been publicly disclosed, but Reuters reported that UPS note THE price was "significant."

THE exit Also note that FedEx had do A estimated $2 billion annually Since It is contract with THE USPS.

FedEx, in the meantime, said on Monday In A securities deposit that they were "unable has reach agreement on mutually beneficial terms has extend THE contract" And that he would be TO DO adjustments has TO DO up For THE loss.

In T4 2023 earnings, UPS reported consolidated income of $24.9 billion, down significantly (7.8% roughly) Since THE $27 billion he brought In has THE even time last year.

Quarterly consolidated Operating profit came In has $2.50 billion In T4, A 22.5% drop Since THE even time In 2022.

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"2023 was A unique And difficult year And through he all We stayed concentrate on control What We could control, stayed on strategy, And reinforced OUR foundation For future growth," UPS CEO Carole Tome said has THE time.

UPS was down on 23% year on year as of Monday late afternoon.