- 11 March 2019
- Transport / Logistics Services
Commercial spending by the US Postal Service (USPS) grew to $15.9bn in financial year 2018, up from $15 billion in 2017. This has been shown by the Bloomberg Government USPS Dashboard.
The increase of nearly $1bn is the biggest increase since 2016 when the Bloomberg Government index started publishing agency data derived through Freedom of Information Act requests.
Among those companies benefitting from the USPS spending, FedEx Corp received $1.9bn, amounting to 12% of the postal operator’s commercial spend. This was a jump of over $300 million on the year before.
FedEx has a longstanding business relationship with USPS and amongst other things has a multibillion-dollar contract for the Air Cargo Network (ACN) that was signed in 2017 and is set to run until Fall 2024.
Some 18% of USPS spending is in air cargo provision across 65 companies. FedEx rival UPS also runs air cargo and took $299 million in the financial year in question. UPS’s own income grew by 18% across all services it provides.