FedEx Corp. announced that its FedEx Express subsidiary has entered into a new express air transportation contract with the United States Postal Service (USPS). The current contract ends in September; the new contract will begin in October.

Under this seven-year agreement, valued at approximately $10.5 billion, FedEx Express will provide airport-to-airport transportation of USPS express mail and priority mail within the US. 

FedEx Express president and CEO David Bronczek said the contract “provides enhanced value and additional flexibility allowing the USPS to respond to possible changes.”