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USPS Signs Multiyear Deal to Solidify DHL Ties
The agreement extends a 25-year partnership and gives DHL eCommerce more predictable access to USPS delivery capacity, officials said.
On Thursday, the United States Postal Service announced a multi-year agreement with DHL eCommerce valued at over $10 billion, extending a partnership of over 25 years.
Postmaster General David Steiner seeks to expand the agency's revenue base, while the arrangement allows DHL to avoid building extensive last-mile infrastructure, a dynamic Steiner called a "total win-win."
DHL eCommerce manages parcel sorting through 19 automated hubs, while the Postal Service leverages its network to reach 170 million households six days per week.
Americas CEO Scott Ashbaugh said the multi-year commitment provides "really for the first time" predictability for clients, while Steiner emphasized the agency remains the "best last-mile provider by default."
With plans to potentially double its business by 2030, DHL sees the postal network as optimal for serving communities efficiently while supporting commitments to reducing emissions.
The two companies want to split up the parcel business. DHL wants to take over pick-up and sorting, the US Post the delivery. The US business can be doubled in this way.