USPS AIR FREIGHT UPDATE – DEC 16
December 16
We are continuing to work with USPS and our legislators on answers to our questions/challenges as we plan for our 2025 shipping season. Below is a summary of findings that were provided by our legislators that recently met with USPS leadership regarding shipping of live poultry.
General
- USPS operates two air networks – one is day network with UPS and one is a night network with FedEx.
- Before the change, FedEx day network was the main shipping method.
- Both UPS and FedEx are reducing their air networks, FedEx significantly.
- Currently not part of UPS’ contract to ship day old poultry but they are looking into that option/testing flights – would be a future decision.
Future Demand
- They have access to historical volumes and access to peak capacity numbers – which they have seen as March, April, and May.
- USPS said that FedEx has to offer at least that amount to meet peak capacity.
- USPS can request more if demand goes up but this has to requested by USPS 90 days in advance.
- They have worked with the bird shippers of America to outline what shippers believe the capacity will be for 2025.
Postal locations
- With the change to FedEx night, there are 100+ destinations folks can take live chicks, but these can change based on FedEx shipping dry ice.
- Because dry ice takes the oxygen out of the air, they cannot ship live animals on the same flight, which is why some locations change.
- They mentioned that local postmasters are also an appropriate avenue for you all to take concerns or assist in coordination.
Connecting with industry
- Dale Kennedy was on the call and mentioned that he engages significantly with the Bird Shippers of America.
- When ordering more capacity with FedEx, it is important to engage with him, so it gets done 90 days in advance.
$15 surcharge
- When FedEx had the entire contract, USPS was building the pallets that would go on flights – after the change, FedEx took over that function which caused them to add a charge to USPS.
- USPS then verified all of their costs and then looked at fees that would cover their costs, which is how the $15 was decided.
- They noted this surcharge was not just live chicks but all perishable products and animals.