US Postal Service Strikes Multi-Year Deal With DHL Unit
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Fazen Markets Editorial Desk
Collective editorial team · methodology
uspsdhllogistics
Fazen Markets Editorial Desk
Collective editorial team · methodology
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The United States Postal Service finalized a multi-year agreement with DHL eCommerce Solutions, a unit of Deutsche Post DHL Group, on 28 May 2026. The deal expands their existing partnership for last-mile delivery services across the United States. This arrangement allows USPS to use its extensive network for final delivery of DHL eCommerce packages, enhancing service capabilities for both entities.
The USPS has pursued strategic partnerships to optimize its network utilization and generate revenue amid persistent financial pressures. The agency reported a $6.5 billion net loss for its 2025 fiscal year, underscoring the need for commercial agreements. Last-mile delivery demand has surged with e-commerce growth, making efficient logistics partnerships critical for cost management.
This new multi-year deal represents a significant expansion of the existing relationship between USPS and DHL. The previous contract, initiated in 2020, was valued at approximately $500 million annually. This renewed and expanded agreement comes as USPS implements its Delivering for America 10-year plan to achieve financial sustainability.
Rising parcel volumes and intense competition in the logistics sector created the catalyst for this enhanced partnership. The deal allows both organizations to capitalize on their respective strengths—DHL's international shipping volume and USPS's unparalleled domestic reach.
Deutsche Post DHL Group reported €81.8 billion in total revenue for fiscal year 2025. Its DHL eCommerce Solutions division contributed approximately €7.2 billion to this total. The unit handles over 1.5 billion parcels annually across its global network.
The USPS handles approximately 40% of the world's mail volume. It operates a fleet of over 230,000 vehicles and employs more than 640,000 workers. The agency delivered 120.2 billion pieces of mail and 7.6 billion packages in fiscal year 2025.
This partnership expansion follows a pattern of USPS commercial agreements. The agency's shipping and packages segment revenue reached $29.7 billion in fiscal 2025, representing 42% of total revenue. This compares to $26.2 billion in shipping revenue during fiscal 2024.
| Metric | USPS (2025) | FedEx Ground | UPS |
|---|---|---|---|
| Daily Package Volume | 20.8 million | 12.1 million | 24.7 million |
| Average Delivery Time | 2.7 days | 2.3 days | 2.1 days |
The agreement provides revenue stability for USPS while giving DHL eCommerce Solutions expanded last-mile capabilities without capital expenditure. Deutsche Post DHL Group [DPW.DE] shares typically react positively to contract security in the lucrative US market. The stock gained 2.3% in Frankfurt trading following the announcement.
Pure-play last-mile delivery providers face increased competition from this strengthened partnership. Companies like LaserShip and OnTrac may experience margin pressure as major players consolidate volume. The deal reinforces the competitive advantage of integrated logistics networks with established postal partnerships.
Some analysts question whether the revenue share terms sufficiently benefit USPS relative to the operational burden. The agency's labor costs and pension obligations continue to outpace revenue growth in its core mail business. The partnership does not address structural challenges facing the postal service's financial model.
Institutional flow data indicates net buying in DPW.DE and neutral positioning in FedEx [FDX] and United Parcel Service [UPS]. Logistics sector ETFs such as the iShares Transportation Average ETF [IYT] may see rebalancing activity following this development.
Investors should monitor Deutsche Post AG's Q2 2026 earnings release on 12 August 2026 for updated guidance on US revenue contributions. USPS will report its fiscal Q3 results on 14 November 2026, providing clarity on shipping segment performance.
The key level for DPW.DE shares remains €45.50, the 200-day moving average resistance. A sustained break above this level on volume would signal institutional confidence in the US growth strategy. For sector sentiment, watch the Dow Jones Transportation Average support at 16,800.
Regulatory scrutiny represents another watch point. The Postal Regulatory Commission must review significant operational changes, though this commercial agreement likely falls outside mandatory review thresholds. Congressional oversight hearings on USPS finances scheduled for September 2026 may address the agency's partnership strategy.
Retail investors holding Deutsche Post DHL Group shares (DPW.DE) gain exposure to secured US revenue streams through this agreement. Those invested in US logistics ETFs like IYT may see rebalancing as market share shifts. The deal does not directly create US-listed investment opportunities, as DPW.DE trades primarily on European exchanges.
USPS has partnered with private carriers since 2001, when it began delivering Amazon packages. The agency signed its first major contract with FedEx for air transport in 2001, valued at $6.3 billion over seven years. The current DHL agreement continues this 25-year trend of leveraging postal infrastructure for commercial logistics partnerships.
The partnership aims to optimize delivery routes and reduce per-package costs through increased density. However, these operational efficiencies may not directly translate to lower consumer shipping rates. Carrier pricing depends more on competitive dynamics, fuel costs, and demand patterns than individual partnership agreements.
The expanded partnership strengthens DHL's US competitiveness while providing USPS with stable revenue streams.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. CFD trading carries high risk of capital loss.
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