because it was awarded with no competitive bidding. FedEx rivals
UPS Inc. and Airborne Express, which two years later was acquired by
DHL, were vocal at the time in opposing the process. The renewed
2006 contract replaced the final two years of the initial compact.
In recent months, there was speculation the contract would be
split up for political considerations. In the end, however, USPS
seemed sufficiently satisfied with FedEx’s service to determine that
such a move would be too difficult to execute. It is unclear at this
time what happens to the small amount of USPS’s traffic now handled by UPS.
The agreement was initially struck to improve mail-delivery reliability by moving postal traffic on an all-cargo carrier instead of the
traditional passenger airlines. It also enabled the post office to
reduce the line-haul costs associated with operating its own aircraft
livery for the more-urgent, time-definite deliveries of Express and
Priority Mail shipments. Express Mail provides overnight deliveries
to most of the United States.
At the same time, the agreement helped fill FedEx’s planes and
improved utilization for its sorting operation in Indianapolis, which
generally processes shipments not bound for overnight deliveries.
FedEx also handles some of the USPS’s first-class mail. However,
the network is designed primarily to move Express and Priority
Mail traffic. ;
ground breakers
Menlo Worldwide Logistics has established a 16,000-square-meter (172,000-
square-foot) distribution center in Genk,
Belgium. … Moduslink, a logistics service provider specializing in the storage,
assembly, and distribution of consumer
electronics and software, is opening a
15,000-square-meter (161,000-square-
foot) distribution center in the
Netherlands, which will employ 350 to
500 people. … International developer
Panattoni Development Co. has agreed to
market and develop the Americas
Gateway Logistics Center in Moore
Haven, Fla., as a master-planned, international intermodal logistics center.
Plans call for the construction of 40 million square feet of manufacturing and
distribution space on 4,700 acres, with an
additional 2,000 acres available for
assembly plants.
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