FedEx Corp. said it expects a decision “shortly” from The U.S. Postal Service on whether it will continue providing domestic air transportation services for its First-Class, Priority and Express Mail services.
The Memphis-based shipping giant disclosed that it anticipates a contract announcement soon in its most recent quarterly regulatory filing.
The U.S. Postal Service has solicited proposals for the delivery of these services after FedEx Express’ current contract ends in Sept. 2013. FedEx warned that the services could be transitioned to another provider, and that even if the Memphis-based company does retain the contract, the terms and conditions of the new arrangement may be “less favorable.”
FedEx also said that any changes in the Postal Service’s operations, network, services offerings or pricing could have an adverse result on FedEx’s financial results. Because the independent government agency is both a customer and a vendor for FedEx, the Postal Service’s financial struggles could also have an adverse impact on FedEx.
The Postal Service has said it could run out of money if Congress does not allow it to change its business model and increase profitability. Yesterday, The Postal Service said it would not end Saturday delivery of first-class mail, citing Congressional opposition.