FedEx gets U.S. Postal Service international delivery pact

FedEx Express unit received a contract to handle guaranteed international deliveries for the U.S. Postal Service, a deal that was previously held by DHL Worldwide Express.

Financial terms weren’t disclosed when the contract was announced Tuesday.

“We evaluated a number of international delivery providers and the review showed that FedEx offers the best combination of price, service, brand recognition and cost/network efficiencies,” said Postal Service chief marketing officer Anita Bizzotto.

FedEx said its international delivery system easily can absorb the Postal Service business.

“We have planes that are flying from the United States to foreign countries every day,” FedEx spokesman Jess Bunn said in Memphis, Tennessee, the shipping company’s corporate home. “It’s not going to have a significant financial impact right now, but we think it has the potential to grow.”

Officials from DHL, a unit of Deutsche Post AG, could not immediately be reached for comment.

Under the Global Express Guaranteed contract, FedEx will transport and deliver international packages with guaranteed delivery dates to about 190 countries.

The deal also includes new service to Japan and Brazil and co-branded shipping labels, the Postal Service said.

Apart from the new contract, which starts July 1, FedEx provides the U.S. Postal Service with some domestic air transportation and maintains about 5,000 drop boxes in U.S. retail locations.

FedEx shares closed at USD76.47, up 84 cents, or 1.1 percent, Tuesday on the New York Stock Exchange.

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