Postal Updates

By Bill McAllister, Washington Correspondent

FedEx is top supplier to United States Postal Service in 2015

March 01, 2016 09:00 AM

  • FedEx, based in Memphis, has held the top position as the leading supplier to the United States Postal Service since 2002. During fiscal 2015, the Postal Service paid FedEx almost $1.4 billion to haul mail.

By Bill McAllister, Washington Correspondent

Federal Express Corp. may have seen its postal revenues drop by three percent in the fiscal year ended Sept. 30, but its tab of almost $1.4 billion for carrying mail still was enough to make it the United States Postal Service’s top supplier in fiscal 2015.

The Memphis-based carrier has held the top position as the leading postal supplier since 2002.

The No. 2 supplier was the Energy United Electric Membership Corp. of Statesville, N.C., which received almost $439.9 million for telecommunication and energy billing services.

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The annual list is compiled by the Kansas City-based Husch Blackwell law firm, based on information supplied by the Postal Service under a Freedom of Information Act request.

In its announcement about the fiscal 2015 results, the law firm noted that nine of the top 10 firms used by the Postal Service were either transportation companies or technology companies.

Overall, the firm said the USPS spent about $12.5 billion on outside purchases, and about half of that amount was for transportation services.

FedEx has dominated the list since it received a major contract to carry mail between many cities. United Parcel Service is also a major letter carrier for the USPS and ranked 11th in the last fiscal year, with $154 million in postal revenues.

Trucking companies were high on the transportation list last year.

Salmon Companies Inc., a Little Rock, Ark., trucker, was fourth, with $229 million in postal revenues.

Victory Packaging of Houston, a logistics and distribution service provider for ReadyPost and other packaging programs, earned the fifth-place spot, with $212 million in revenues.

United Airlines Inc. was sixth, with revenues of $197 million.

Auto parts supplier Wheeler Bros. Inc. of Somerset, Pa., was 9th, with $175 million.

Eagle Express Lines Inc., a South Holland, Ill., trucking firm, was 12th, with $140 million.

Cargo air carrier Kalitta Air of Ypsilanti, Mich., was 15th, with $97 million; Delta Airlines of Atlanta was16th, with $93 million.

Among the top technology-related firms were No. 3 Honeywell International, which earned $273 million to provide hand-held mobile delivery devices for letter carriers.

HP Enterprise Services, a computer firm, ranked seventh, with revenues of almost $192 million.

Accenture Federal Services, a consulting firm, was eighth, with revenues of $188 million.

Northrop Grumman Corp. which operates a central repair facility for the USPS in Topeka, Kan., was 10th, with $159 million.