U.S. Postal Service

UPS plans to hire 300 pilots to support Postal Service contract

UPS is looking to hire more than 300 pilots to support an anticipated increase in air cargo demand driven by a new multi-year contract from the U.S. Postal Service, according to the union representing the company’s air crews.

“The Independent Pilots Association Executive Board was informed that UPS HR is resuming their pilot hiring process to account for the additional volume surge that will occur as the year progresses,” the union said in a statement shared with FreightWaves. “The initial...

https://www.freightwaves.com/news/ups-plans-to-hire-300-pilots-to-support-postal-service-contract

Postal Service’s air cargo shift to UPS makes everyone a winner 

The U.S. Postal Service’s decision this week not to renew a contract with FedEx, worth more than $1.5 billion per year, for domestic air transport and award it to UPS after more than two decades actually benefits all three parties, according to industry analysts. 

At face value, the arrangement seems a blow for FedEx (NYSE: FDX), which will lose one its biggest customers when the existing contract expires on Sept. 29. And it raises questions about how UPS (NYSE: UPS) can make a decent profit...

https://www.freightwaves.com/news/postal-services-air-cargo-shift-to-ups-makes-everyone-a-winner

How FedEx could win by losing its Postal Service business

FedEx would benefit from the partial, or complete, loss of its huge contract with the U.S. Postal Service because it would force the parcel delivery giant to downsize a bloated and expensive air transport network, which could help revive profitability, said Brandon Oglenski, who covers the company for Barclays Bank.

FedEx Express (NYSE: FDX) and UPS (NYSE: UPS) move similar quantities of domestic and international express packages, but because FedEx has a much bigger airline, it chases...

https://www.freightwaves.com/news/how-fedex-could-win-by-losing-its-postal-service-business

FedEx braces for 50% cut in Postal Service air contract

FedEx Corp. expects its air express unit will lose half of its business with the U.S. Postal Service when an existing contract expires, making more pilots expendable, FreightWaves has learned.

The Postal Service three years ago began shifting a large amount of volume from air to ground transportation to reduce red ink and become more competitive. Declining postal volumes have been a significant drag on FedEx Express’ recent performance, company officials publicly acknowledge.

Postal delivery at...

https://www.freightwaves.com/news/fedex-braces-for-50-cut-in-postal-service-air-contract

Postal Service EV rollout off to shaky start

WASHINGTON — Stolen electric vehicle charging station equipment and office thefts at the U.S. Postal Service are troubling signs for agency watchdogs as the Postal Service begins moving toward electrifying its delivery fleet.

Concern about the thefts and the ability of the Postal Service to protect its assets appears in a new audit report published by the Postal Service’s Office of Inspector General (OIG).

“We found that management controls over the storage of charging stations … were not...

https://www.freightwaves.com/news/postal-service-ev-rollout-off-to-shaky-start

Automation underperforming for US Postal Service, watchdog says

WASHINGTON — Early results of the U.S. Postal Service’s push to modernize mail and package processing reveal that the agency is falling far short of performance goals, according to its watchdog unit.

An audit by the Postal Service’s Office of Inspector General (OIG) found that 350 automated guided vehicles (AGVs) purchased and deployed at processing centers between October 2019 and April 2022 were severely underused, which led to a $105 million shortfall in labor savings the equipment was...

https://www.freightwaves.com/news/automation-underperforming-for-us-postal-service-watchdog-says

Postal service contractor cutting 660 jobs 

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U.S. Postal Service contractor Matheson Flight Extenders (MFE), which operates 44 mail sorting and...

https://www.freightwaves.com/news/postal-service-contractor-cutting-660-jobs

Aloha Air Cargo asks DOT to remove regulatory handcuffs on expansion

Aloha Air Cargo is urging the U.S. Department of Transportation to lift a cap on the number of aircraft it can operate in inter-island Hawaii service, which it claims is inhibiting its ability to grow and help the U.S. Postal Service overcome mail delivery backlogs.

High mail demand exceeds Aloha Air’s current capacity, resulting in transit delays. The Postal Service has asked Aloha Air Cargo to begin transporting mail from Honolulu to both Maui and Hilo and could be forced to use slower boats...

https://www.freightwaves.com/news/dot-air-cargo-limit-forces-postal-service-to-use-boats-in-hawaii

Air France-KLM to pay $3.9M over alleged Postal Service scan scam

A baby blue KLM plane and an red, white and blue Air France plane parked at a passenger terminal.

Air France-KLM has agreed to pay $3.9 million to resolve U.S. government claims of fudging performance information to prevent the U.S. Postal Service from assessing penalty charges for late delivery of international mail, the Department of Justice announced Friday.

Air France-KLM Group is the seventh airline to settle charges of falsely reporting delivery times in order to ensure full payment under transport contracts with the postal operator for civilian, military and diplomatic mail. Delta Air...

https://www.freightwaves.com/news/air-france-klm-to-pay-39m-over-alleged-postal-service-scan-scam

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