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FedEx signs new $10.5 billion contract with USPS

A Federal Express truck is parked next to a UPS truck as both drivers make deliveries in downtown San Diego, California March 5, 2013. REUTE
A Federal Express truck is parked next to a UPS truck as both drivers make deliveries in downtown San Diego, California March 5, 2013. REUTE

(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 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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