Postal Updates

By Bill McAllister, Washington Correspondent

FedEx tops 2014 list of suppliers to Postal Service

March 05, 2015 09:40 AM

FedEx Corp. continues to dominate the United States Postal Service’s list of top suppliers, leading the list in fiscal 2014, as it has every year since 2002.

But the Memphis-based delivery firm’s postal revenues dipped to $1.4 billion in the past fiscal year, down from $1.8 billion in fiscal 2013.

According to Husch Blackwell, the legal firm that prepares the annual listing of top postal suppliers, the drop reflects "reduced rates" under a new seven-year air cargo contract that began Oct. 1, 2013.

United Parcel Service, another delivery firm that carries mail on its aircraft, fell out of the top 10 last year, according to the new ratings. It received $123 million from the Postal Service, putting it in 14th place.

Second place in the new ratings went to EnergyUnited (one word) Electric Membership Corp. of Statesville, N.C., which sells telecommunications and energy billing services to the Postal Service. It received $434 million, most of which it paid to other companies, according to Husch Blackwell.

No. 3 was Pat Salmon & Sons of Little Rock, Ark., a trucking company that hauls mail between cities for the USPS. It received $226 million.

Victory Packing of Houston, which supplies mail packing products, jumped from 14th place in 2013 to 4th place in 2014. It received $214 million from the Postal Service.

Kalitta Air, LLC, of Ypsilanti, Mich., which carries mail to overseas military bases, was 5th, with $196 million, while United Airlines was 6th, with $176 million in postal revenues.

Hewlett-Packard Co. of Palo Alto, Calif., was 7th, with $172 million in postal revenues. Accenture Federal Services of Chicago was 8th, with $171 million.

Husch Blackwell noted that HP seemed to have suffered "no harm" from its $32.5 million settlement with the Justice Department over charges that it overbilled under its postal contract.

Vehicle parts supplier Wheeler Bros. Inc. of Somerset, Pa., ranked 9th, with sales of $159 million, and the final spot went to Northrop Grumman Corp. of Falls Church, Va., which provides mail processing equipment and other services, with $154 million.

More from Linns.com:

Yellow Hat stamp find in U.S. stamp mixture: postmarked pair on clipped envelope piece

Say goodbye to the lick-and-stick U.S. stamp

USPS plans stamp for poet Maya Angelou

The world recognized Leonard Nimoy on stamps

Regency-Superior auction to offer Louisiana Purchase postal history and more

Keep up with all of Linns.com's news and insights by signing up for our free eNewslettersliking us on Facebook, and following us on Twitter.