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The U.S. Postal Service and DHL eCommerce have reached a multi-year contract agreement with an expected value of "well over $10 billion," extending their partnership of over 25 years, according to a news release Thursday.
Through the deal, DHL eCommerce will continue to hand off parcels it picks up, sorts and transports exclusively to the Postal Service for last-mile delivery to the end customer, the release said.
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, according to Scott Ashbaugh, CEO of DHL eCommerce Americas, during a media webinar event Thursday. The exact length of the deal was not disclosed.
"Really for the first time, we've got a multi-year agreement, and that allows us more predictability and gives confidence to our clients that over the long term they're in a good place with us with our solution," Ashbaugh said.
