FedEx signs new $10.5 billion contract with USPS

Tue Apr 23, 2013 8:45pm EDT

A delivery truck returns to a FedEx sort facility in Boston, Massachusetts June 18, 2008. REUTERS/Brian Snyder

A delivery truck returns to a FedEx sort facility in Boston, Massachusetts June 18, 2008.

Credit: Reuters/Brian Snyder

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(Reuters) - FedEx Corp said its FedEx Express subsidiary has entered into a seven-year express air transportation contract with the United States Postal Service for about $10.5 billion.

FedEx's current contract ends in September 2013, and the new contract will begin in October 2013.

The company on Tuesday also launched a new service to let customers select from a range of options to schedule dates, locations and times of delivery. Rival UPS (UPS.N) began offering its "UPS My Choice" service more than a year ago.

(Reporting by Nivedita Bhattacharjee in Chicago; Editing by Carol Bishopric)

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