USPS AIR FREIGHT UPDATE - DEC 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.