UPS and FedEx land $2.7B government delivery contract modifications

M&A · Partnership
โดย Seeking Alpha·US·Read original
Summary · why it matters

United Parcel Service and FedEx have each secured modifications to an existing U.S. government transportation contract valued at about $2.7 billion per company. The agreements, negotiated by an interagency team of Department of Defense and company officials, run from October 1 to September 30, 2030. Under the Next Generation Delivery Service-2 program, the two shippers will continue providing express and ground small package delivery services for U.S. agencies, with FedEx and UPS handling international and domestic shipments and Polar handling international-only shipments. U.S. Transportation Command, the Defense Department organization that moves military people, equipment, and supplies worldwide, is paying for the air cargo and delivery capacity.

Impact on stocks 2

Industrials · 2 stocks
FedEx Corporation
FDX
▲ PositiveDemandrelevance

Secured $2.7B government delivery contract modification through 2030.

Off-coverage companies 1

Polar Valley Investments LimitedPrivate▲ Positive
Demandrelevance

Polar handling international-only shipments under the contract.