Ever wondered if you can mix the reliability of the United States Postal Service (USPS) with the speed of FedEx for your shipping needs? You’re not alone—many people are confused about how these two major carriers work together, especially when sending or receiving packages.
Understanding how USPS and FedEx collaborate is crucial for making smarter, faster, and sometimes cheaper shipping decisions. In this article, we’ll explain how their partnership works and offer helpful tips for managing your shipments.
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How Do the United States Postal Service (USPS) and FedEx Work Together?
Many people wonder how the United States Postal Service (USPS) and FedEx interact. Aren’t these companies competitors? The answer is yes, but the relationship is much more complex – and surprisingly cooperative – than you might expect. This article explores how USPS and FedEx work together, why they collaborate despite being rivals, and what this means for customers like you.
Understanding USPS and FedEx: The Basics
Before looking at how these organizations collaborate, let’s paint a clear picture of who they are:
- USPS: A government-run postal service, operating across the United States and offering mail and package delivery to every address in the country.
- FedEx: A private courier company, known for fast shipping, international reach, and advanced tracking tools.
While their services sometimes overlap, each serves unique roles in the shipping ecosystem.
Why Do USPS and FedEx Partner?
At first, it seems counterintuitive: Why would two competitors team up? The answer comes down to efficiency, cost-effectiveness, and service coverage.
Here’s Why They Collaborate:
- Expanded Coverage
- FedEx has an extensive network for express deliveries but can’t reach every rural mailbox cost-effectively.
- USPS delivers to every address in the nation, six days a week, including PO Boxes and remote areas.
- Cost Savings
- Partnering helps FedEx avoid the high expense of making final deliveries in hard-to-reach places.
- USPS, in turn, benefits from additional volume and revenue by delivering packages for FedEx.
- Faster and More Reliable Deliveries
- Combining FedEx’s long-haul speed with USPS’s last-mile expertise creates a seamless shipping process for many parcels.
How USPS and FedEx Work Together: Key Programs
FedEx SmartPost (Now FedEx Ground Economy)
One of the most significant collaborations between the two companies was FedEx SmartPost, rebranded as FedEx Ground Economy.
How It Worked:
- FedEx transported packages most of the way—by ground or air—across the country.
- When packages neared their destinations, FedEx handed them over to USPS.
- USPS completed the “last mile,” delivering packages to the recipient’s door, mailbox, or PO Box.
This partnership allowed FedEx to offer inexpensive delivery options for low-priority packages, especially to areas that are expensive or impractical for FedEx to reach directly.
Benefits of FedEx Ground Economy:
- Lower shipping costs for e-commerce retailers and consumers.
- Reliable USPS delivery to every address, including rural locations and PO boxes.
- Simpler logistics for FedEx, focusing on their most efficient routes and hubs.
USPS Providing Airport-to-Airport Services
In years past, USPS also relied on FedEx for air transportation of mail and packages between major cities, especially when speed was critical, and their own aircraft were unavailable or impractical. Although this relationship changed as USPS sought new contracts, this arrangement highlights the dynamic ways postal carriers and private companies support each other’s strengths.
What Does This Mean for You as a Shipper or Shopper?
Understanding how USPS and FedEx collaborate helps you make better shipping choices.
If You’re Shipping Packages:
- You may choose FedEx Ground Economy for affordable, trackable delivery. This service combines FedEx’s efficiency and USPS’s universal service.
- Certain addresses are only served by USPS for final delivery, such as PO Boxes and remote rural addresses.
- Tracking is supported throughout. Both FedEx and USPS provide tracking information, but you may notice the tracking number switching carriers as the package is transferred.
For Recipients:
- Expect packages to arrive via your usual mail route if the final delivery is handled by USPS (even if you ordered through a company using FedEx).
- Delivery times may be longer for economy hybrid services because of multiple handoffs, but reliability is generally high.
Benefits of the USPS-FedEx Partnership
Let’s break down the partnership’s top advantages:
1. Cost Savings
- Companies can offer customers lower-cost shipping because the “last mile” (often the most expensive part) is handled by USPS, which already visits every mailbox daily.
- Increased shipping options for e-commerce businesses, making free or low-cost shipping more feasible.
2. Improved Access
- Every address in the U.S. can be served, no matter how remote.
- Delivers to PO Boxes, which most private carriers do not access.
3. Reliable Tracking
- Both companies’ systems provide door-to-door tracking, even as packages change hands.
- Customers can see each scan event along their package’s route.
4. Flexibility for Businesses
- Hybrid shipping solutions allow businesses to balance speed and price.
- Enables retailers to choose the right service level for every customer and shipment.
Challenges and Potential Drawbacks
No system is perfect. Here are some aspects to consider:
1. Slower Delivery on Economy Services
- Handing off packages can introduce slight delays, especially when transitioning from FedEx to USPS.
- Economy options are best suited for non-urgent deliveries.
2. Tracking Gaps
- Occasionally, there may be short pauses in tracking updates when responsibility shifts from one carrier to another.
3. Less Control on Delivery Options
- When USPS makes the delivery, FedEx cannot always reroute or modify delivery instructions once the package is in USPS’s possession.
- Features like direct signature confirmation or hold-at-location might be limited with hybrid services.
Practical Shipping Tips
Want to get the most from shipping with FedEx, USPS, or their combined services? Here’s how:
For Shippers
- Know Your Destination: Use hybrid services (like FedEx Ground Economy) for addresses USPS can access, especially rural or PO Boxes.
- Choose the Right Service Speed: Use economy services for non-urgent parcels to save money; choose express or ground for time-sensitive shipments.
- Communicate Clearly: If you’re a business, advise customers that the package may arrive via their normal mail carrier, even if tracking starts with FedEx.
For Recipients
- Track Using Both Portals: If available, check your package status on both FedEx and USPS tracking pages for the most up-to-date info.
- Anticipate Delivery Timeframes: Economy solutions are cost-effective, but may take a few extra days. Plan accordingly.
- Check Your Mailbox: Some FedEx packages arrive via your postal mailbox or with your regular mail, particularly when USPS completes the final delivery.
Cost Tips: Saving Money on Shipping
Here’s how you can minimize shipping costs while leveraging USPS, FedEx, or their combination:
- Choose Economy-Hybrid Services Where Appropriate
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FedEx Ground Economy (formerly SmartPost) and USPS Retail Ground are the most budget-friendly options for lightweight, non-urgent packages.
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Use Flat Rate and Regional Rate Boxes
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For certain package sizes and zones, USPS Priority Mail Flat Rate can offer serious savings.
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Bulk Shipping Discounts
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Businesses and frequent shippers should set up accounts with both FedEx and USPS to access commercial rates or negotiate discounts.
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Compare Prices and Speed for Each Shipment
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Rates vary by size, weight, and destination. Always compare USPS, FedEx, and hybrid options before choosing.
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Avoid Remote Area Surcharges
- If shipping to rural addresses, hybrid services eliminate the extra surcharges FedEx charges for direct rural delivery.
Best Practices for Choosing the Right Shipping Service
Deciding between FedEx, USPS, or a hybrid service? Consider these best practices:
- Assess Delivery Urgency: Use standard or economy services for cost savings, expedited or express for tight deadlines.
- Weigh Package Size and Weight: Small, light packages may ship cheapest with USPS; oversized boxes may be better with FedEx Ground.
- Factor in Destination: Remote and PO Box addresses are best served by hybrid services or USPS directly.
- Consider Service Features: Need signature, insurance, or fast delivery? These may only be available with certain FedEx services.
The Future of USPS and FedEx Collaboration
Shipping and delivery continue to evolve as e-commerce grows. While contracts and specific programs (like mail air transport agreements) may shift, the need for efficient, reliable, and affordable shipping solutions ensures USPS and FedEx will likely keep finding ways to work together. For consumers and businesses, this partnership means more options, better service, and greater value.
Frequently Asked Questions (FAQs)
1. Do USPS and FedEx deliver each other’s packages?
Both companies have partnered for specific services. For example, FedEx uses USPS for the “last mile” delivery of certain packages (previously via SmartPost, now called FedEx Ground Economy), especially to addresses that are harder for FedEx to reach cost-effectively.
2. How do I track a package that is being shipped through both FedEx and USPS?
You can use the tracking number provided to follow your package on FedEx’s website. Once USPS takes over for final delivery, the USPS tracking page also provides updates. Sometimes, the tracking number may be recognized by both carriers’ systems.
3. Will my FedEx package always be delivered by USPS?
No. Only packages sent through specific hybrid services, like FedEx Ground Economy, are handed over to USPS for final delivery. Standard FedEx services (like FedEx Express or Ground) are delivered entirely by FedEx drivers, except in rare cases.
4. Can I ship to a PO Box using FedEx?
FedEx cannot deliver directly to PO Boxes. However, if you use a hybrid service (like FedEx Ground Economy), the package travels with FedEx initially and is handed to USPS, who can then deliver it to the PO Box.
5. Are there cost benefits to using services that combine FedEx and USPS?
Yes, these services are often the most budget-friendly, especially for light, non-urgent shipments to rural locations or PO Boxes. They take advantage of FedEx’s national network and USPS’s universal delivery coverage to reduce overall shipping costs.
In Summary
The USPS and FedEx, while competitors, work together in smart ways to cover every inch of the United States efficiently. Their partnership combines cost savings, extended reach, and reliable delivery. Whether you’re a business, an online shopper, or someone sending a care package, understanding how these organizations collaborate empowers you to choose the shipping solution that fits your needs – balancing speed, price, and convenience every time.
