According to www.supplychaindive.com, the U.S. Postal Service (USPS) and DHL eCommerce have signed a long-term contract valued at $10 billion-plus, with the $10 billion figure described as the minimum amount expected under the agreement, per Steiner — a source cited in the report.
Contract Structure and Strategic Shift
This arrangement differs from prior USPS–DHL eCommerce agreements primarily due to its extended duration, which enables DHL eCommerce to offer longer-term commitments to its own e-commerce clients, according to
“The new contract is different compared to previous USPS-DHL eCommerce agreements due to its duration, which benefits DHL eCommerce’s ability to extend longer-term deals with its own customers.” — Scott Ashbaugh, CEO of DHL eCommerce Americas
. Ashbaugh confirmed during a media webinar on Thursday that executing this contract and pursuing aggressive growth are among DHL eCommerce’s top priorities for 2024.
Operational Integration and Network Flow
Under the deal, the majority of DHL eCommerce’s parcel volume enters the USPS network at local processing centers, while additional parcels are routed to sorting and delivery centers, as stated by Ashbaugh. This injection model reflects an evolution from earlier arrangements and aligns with USPS’s broader push to restructure how third-party consolidators access its infrastructure.
Broader USPS Partnership Strategy
The DHL deal is part of a wider effort by USPS to stabilize its financial outlook through commercial partnerships. In 2024, the agency resumed delivering some UPS Ground Saver packages after a roughly yearlong suspension. That restart followed a period of strained relations and operational realignment between the two carriers. Separately, USPS is also pressing major package consolidators — including Pitney Bowes, OSM Worldwide, and DHL eCommerce — to renegotiate terms that would eliminate volume-based discounts tied to specific network entry points, according to the source.
Industry Context and Market Implications
DHL eCommerce’s U.S. expansion comes amid sustained e-commerce growth: U.S. e-commerce sales reached $1.06 trillion in 2023, up 7.6% year-over-year, per U.S. Census Bureau data. The company’s focus on leveraging USPS infrastructure follows similar moves by competitors — for example, FedEx Ground partnered with USPS for last-mile delivery in over 3,500 ZIP codes starting in 2022, and UPS has maintained a hybrid handoff model with USPS since 2019. For supply chain professionals, the shift signals tightening integration between national postal networks and global logistics consolidators — particularly where labor constraints, urban congestion, and rising customer expectations for speed and tracking accuracy make localized, asset-light delivery models increasingly essential. Contractual stability now directly impacts capacity planning: DHL’s commitment to $10 billion-plus in volume over multiple years allows for multi-year forecasting of USPS network utilization, labor scheduling, and facility investment cycles.
Source: Supply Chain Dive
Compiled from international media by the SCI.AI editorial team.
