Parcel shipping: USPS, FedEx renew international delivery service deal
Jeff Berman, Group News Editor -- Logistics Management, 8/19/2009
WASHINGTON—Earlier today, the United States Postal Service and FedEx Express said they have renewed their Global Express Guaranteed (GXG) alliance.
Terms of the agreement were not disclosed.
USPS officials said that GXG is comprised of its date-certain international delivery service to more than 190 countries and territories, adding that GXG shipping labels and packaging feature both USPS and FedEx logos.
USPS and FedEx began offering this joint service in July 2004. Prior to that, USPS had a similar arrangement with DHL. With GXG, customers drop off packages at their local post offices at which point FedEx picks up those packages, sorts them, and handles the country-to-country linehaul and final delivery.
USPS and FedEx said that GXG is available at thousands of participating postal retail locations and through Click-N-Ship online at usps.com.
“This partnership makes sense, because FedEx does a good job on international shipments and charges a reasonable price,” said Doug Caldwell, executive vice president of ParcelPool, a parcel consultancy. “It is a good fit for the USPS. I would have been surprised had they not renewed.”
Caldwell pointed out that other global postal services partner with various carriers, including FedEx, for similar international express services. A notable example of this is an April 2008 collaboration betweenthe Canada Post Corporation and FedEx Express dubbed Priority Worldwide in which Canada Post’s retail and commercial networks are delivered globally through FedEx’ international delivery network.
A nice feature of GXG cited by Caldwell is that “the price you pay is the price you pay,” as there are not as many add-on charges—or accessorial—which can often be extensive with international shipments. And oftentimes, he said shipping internationally with the USPS can be more cost-beneficial than a private carrier due to negotiated discounts. He added if shippers have a clear understanding of their delivery costs between point A and point B, particularly if they are subject to an extended area surcharge, shipping with the USPS can be less expensive.
“The Postal Service is pleased to renew this important agreement with FedEx,” said Pranab Shah, USPS vice president and managing director, Global Business, in a statement. “We plan to build on the accomplishments of the initial agreement, enhancing GXG’s world-class service reliability by using the resources of both organizations to provide quality and value for our customers.”
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