USPS fires at FedEx and UPS commercial market
The Global Package Discount Program is open to all international parcel shippers, said James P. Wade, vice president of the Postal Service’s international business.
The three-tiered program takes effect immediately and covers shipments to all destinations outside the U.S.
The program comes just five weeks after USPS announced a deal with Consignia, formerly the British Post Office, to handle deliveries of express mail and air parcels in 23 European countries.
The new initiatives are designed to attract corporate customers – the bread-and-butter of the Postal Service’s private sector rivals such as FedEx and UPS. The discounts are limited to packages weighing up to 70 pounds.
“Competition is good for the consumer, but is this a level playing field?” said John Flick, a spokesman for UPS, which has long complained that the Postal Service uses its domestic monopoly to subsidize its international offerings. Flick also questioned whether shippers will be able to track their shipments and whether the Postal Service will be offering time-definite deliveries.
Greg Rossiter, a spokesman for FedEx, declined to comment directly on the Postal Service move, but said customers consider not only price but quality. “The reliability and global reach of our international services is unparalleled,” he said, noting that FedEx can reach markets that account for 95% of the world’s Gross Domestic Product in 24 to 48 hours. “We don’t believe anyone can match that,” he said.
Eye for Transport
