A better delivery: FedEx Express and the United States Postal Service share air space and common ground to better serve their customers.

• Author: Parmelee, Catherine
• Position: Brief Article

Your mail service may be speeding up. Last year the United States Postal Service and FedEx Express entered into a business alliance to share air and ground space. The move is expected to boost both of their networks and benefit American customers.

The United States Postal Service is an independent federal agency that handles 46 percent of the world's mail volume. Its incomes are not derived from tax dollars, but result from the sale of postage and other services and products. With annual revenues of $19 billion, FedEx Corp. is the foremost global provider of transportation, logistics, e-commerce and supply chain management services. FedEx Express, a subsidiary of this corporation, is the world's largest express transportation company.

The two organizations recently teamed up in an effort to enhance their individual services. As a result of the alliance, FedEx Express gains an expanded retail network; the Postal Service gains increased market reach; and mail patrons gain greater choice, reliability and convenience.

"Whenever the public and private sectors work together," said Frederick W. Smith, chairman, president and CEO of FedEx Corp., "the real beneficiary is the American public."

DROP BOXES AT POST OFFICES

This public-private alliance consists of two seven-year service agreements. Under the first contract, FedEx Express has the option to place a self-service drop box at every U.S. postal site--a convenient location for the transportation company's services. FedEx Express intends to have more than 10,000 drop boxes placed at such sites throughout the country by July.

FedEx Express will pay annual fees to the Postal Service for drop-box placements. According to data provided by the U.S. Postal Service, it expects to receive between $126 million and $232 million from FedEx Express over the contract period, depending on the number of self-service drop boxes placed during that time. "As a general rule, FedEx is starting at the largest metropolitan areas and working from there," said FedEx Spokesperson Steve Barber, Memphis, Tenn.

Presently there are 16 FedEx drop boxes placed at Alaska post office sites, 11 in Anchorage and one each in Wasilla, Palmer, Elmendorf Air Force Base, Chugiak and Eagle River. According Barber, it's undetermined at this time if more will be placed in the state during the tenure of the contract.

Some postal patrons of the 49th state are already reaping the rewards of the second contract between the parties...