Service might be in its name, but transportation is a major part of its game. If there was ever any doubt about how essential transportation is to the U.S. Postal Service’s operations, take a look at the list of the USPS’ top suppliers for fiscal year 2016. Five of the top 10 provide transportation services, according to the list compiled and published by law firm Husch Blackwell.

Topping the list for the 14th straight year is FedEx with nearly $1.7 billion in contract value – about a $300 million increase from last year. FedEx has a contract to carry package and letter mail for the Postal Service. The USPS recently renewed FedEx’s air cargo network contract running until September 2024. 

In a short analysis on the list, Husch Blackwell notes that the Postal Service’s decision to buy more than 9,000 Ram ProMaster commercial vans propelled FCA US, LLC, (formerly known as Chrysler Group LLC) to the fourth spot on the list with $270 million in contract value. In addition, six more companies in the number 11 through 20 spots provide transportation services, including package and logistics giant UPS. 

In its annual 10k financial filing, the Postal Service cites the strategic importance of transportation corporations “to provide distribution and delivery services allowing us to serve our respective customers’ needs. Maintaining these alliances is crucial to sales development and growth as they often provide us with introductions into new markets.”

After two years of declining or flat transportation costs, they creeped up in fiscal year 2016 to nearly $7 billion. Still, transportation costs make up only a small percentage of the Postal Service’s total expenses and in some cases, it might make sense to increase transportation costs if they lead to offsets in other costs. For example, closing an unused facility might increase transportation costs because mail will be trucked longer distances, but the facility and labor cost savings could offset those costs if done right.

The top 10 suppliers are listed below with transportation companies highlighted in red. Husch Blackwell compiles the list based on data received in response to a Freedom of Information Act request. Entries for companies believed to be affiliated or have common ownership were consolidated under the company with the highest individual ranking or best-known name. Husch and Blackwell has been compiling the list annually since 1999.

Top 10 USPS Suppliers
Rank FY15 Company FY16 Revenues Billing Location
1 1 Federal Express Corp. $1,678,855,833 Pasadena, CA
2 2 Energy United Electric Membership Corp $414,352,778 Statesville, NC
3 7 HP Enterprise Service, LLC $285,942,420 Plano, TX
4 26 FCA US, LLC $269,722,639 Auburn Hills, MI
5 4 Salmon Companies, Inc $241,796,411 Little Rock, AR
6 5 Victory Packaging $221,393,566 Houston, TX
7 8 Accenture Federal Services $190,484,322 Chicago, IL
8 12 Eagle Express Lines, Inc $178,603,404 South Holland, IL
9 9 Wheeler Bros., Inc $177,388,988 Somerset, PA
10 10 Northrup Grumman Corp $171,155,578 Merrifield, VA

Comments (4)

  • anon

    Portland Oregon has a giant distribution center. It is a vastly automated place I think. I have received mail at my locked box that wasn't not mine which in some cases was important. But what "takes the cake", was the yellow label applied the my garbage bill which was not my address, or my name, or anyone's name associated with me. Now I didn't receive my bill, so I never paid it. The garbage collector just drove on by and paid me no attention. I found an old paper billing with the phone number and called. I drove to the garbage company site,paid the bill, and said I was still living at the address I had lived at for thirty years. We, my husband and I, never filled out an address change. I get plenty of unsolicited mailers at our address, and most of the large corporate billings. But this little postcard billing was mislabeled by your Portland distribution center. I live in Salem Oregon. Maybe a solar flare disturbed your electronics system, haha.

    Sep 18, 2017
  • anon

    I be so glad when you all can rolled out the new mail truck for those who do part riding and part walked it will have save money if they had left the routes along those who had riding those who had walked there are true ways to save money in the USPS in stead of meshing up ups like most area manager does one the promise they made and never made it to the table you might find atleast two routers in Memphis TN on walking they were talking about put clusters mail at ever so many stop for the customer you game more in prospective in hour's and overtime which can be cut out straight forty hour work week listening to your employee voices you got all these non working postals people's out riding everyday they can come up with a marketing team and comes up with the right plans on these walking routes then on the riding route which is over extending can be mixed in with the walking routes every piece of mail need to be track just last week in AMC airport the supervisor and station manager delay all untracked spurs parcels in the station they had the clerk to put them in a white eight pound tub and hid them all bypass mail were delay til Saturday are we a USPS services business or are we just in operations for manager to make us loose these big corporations company not only that 38118 hold out mail is been dire to mendehall station do you think that these customer are pleased with this no they are not everyday billions of dollars are been lost caused the way our system are set up Lord knows it's not my call to say we need to do it this way I look at the assets that we are loosing because of poor management operations one station manager stated it's take time to process customer connect well OIG why she play around we loosing out on that billions dollars contract no I hear postmaster we can all way go back and get that business no we can not because we do not have the right team in place if we are given our business poor service when they paid money for their parcels to be scan and these package are not been you know how many phone calls go to the Humphrey building ask them were is my parcels last Tuesday I were off on my off day do you know when they splitting my route up Mr.hamper had thousands oak part do you know he just scan the parcel and left them sitting in all three of my mail room and didn't get delivered til I came back in on Wednesday this is poor service caused your manager team approved that carriers to do that OIG inspector that poorly services the customer had apple phone on her wrist pull it up at 4:20 pm waiting on they parcels to be delivered six clock came she still didn't get her parcels until I return to work on Wednesday I rescan the parcel and took them to their front desk three things happening you a pay carriers overtime on Tuesday not to deliver a parcels to the customer abused overtime second you track a parcels that say it were delivered that's truly poorly services on the USPS manager and postmaster thirdly if we going to push for the envelopes services and become a billionaire prosperity company we need to represent our work place right number one you got to much abused with mail going on but when the area manager seat back and tell managers in order for a carrier to get back before five cut what's ever corner they need to cut FedEx became a giant by taking cares of his customers the right way you earned your business by what you do if we misused this business do you think they want USPS delivery their package no they go to FedEx caused one thing about it when FedEx say your Package is at your door or your business it's at it right place you see your delivery in GPS tracking for FedEx it's no had done job yes I understand we don't have enough OIG inspector but when you got mail abused it need to be clean up

    Apr 09, 2017
  • anon

    I will never be using USPS for anything remotely important! My experiences: locally-lost mail (important docs and a check!); recieved damaged package (outside box almost completely flattened and inside contents destroyed). International- I sent a costly Priority envelope to Belize and it has taken nearly a month just to get out of the US! Really? Sorry, I won't be using your service again. UPS or FedEx for sure next time! If USPS wants to expand their customer base they better do MUCH better than this!

    Mar 28, 2017
  • anon

    Looking for a contact site that I could leave message, not successful so I'm writing on this site. I mailed 5 things on 3/10/17. Expected delivery was 3/13. With the heavy snow I wasn't expecting it to be delivered on that day. However up to now only 2 of the 5 was delivered. 3 are not received. I have no tracking since it was mailed as a regular mail cost was $0.98 for each. Now, would I consider these as lost mail? So I would consider regular mail as NOT A RELIABLE form of doing business.? Went to UPS, it was expensive but sure it ( others ) reached the destination and was received! It is really not the merchandise that counts because it was not that expensive but the thought that you remember someone that you are sending A PRESENT, that really count! ( Mail charge is more expensive than the gift itself !!!! )

    Mar 28, 2017

Recent Comments

  • 58 min 18 sec ago
    I've had this same problem. The thing is, I actually watched them scan the scan form, it's like the USPS tracking system broke. I've never had an issue until now, I'm thinking I...
  • 1 hour 9 min ago
    The service is ridiculously slow and inefficient, prices keeps going up, the excuse is “COVID 19” related, was slow way before that. My two packages still stuck in Seminole-Orlando for 6 days now,...

Share this post

Monthly Archive