DHL eCommerce has announced a $10 billion multi-year contract with the United States Postal Service (USPS) for final-mile deliveries across the United States.

The deal will see DHL eCommerce continue to oversee pickup and handling of packages in the US through its 19 automated sorting hubs, as well as middle-mile delivery via ground and air transportation. USPS will handle final-mile delivery, leveraging its existing network of more than 41,550 ZIP codes and 170 million addresses.

Inbound Logistics reported that USPS has increased its parcel capacity by approximately 40 per cent in the past four years, citing remarks made by postmaster general and USPS chief executive David Steiner during a press briefing on the deal.

Scott Ashbaugh, chief executive of DHL eCommerce Americas, said: “This agreement creates a dependable, long-term platform for our customers.

“Working with USPS allows us to serve communities nationwide in a highly efficient way, minimising additional vehicles on the road and supporting our commitment to reducing emissions. Postal Service carriers are trusted members of the communities they serve, and we’re proud to partner with an organization that shares our focus on reliability, transport safety, and public service.”

Steiner described the deal as an “exciting milestone” in USPS’s relationship with DHL eCommerce.

“This extended and exclusive agreement reflects a shared commitment to innovation, operational alignment, and delivering greater value to the shipping marketplace,” he said.

“By aligning more closely with our transformed network, we are creating a stronger, more efficient last-mile solution that expands customers’ access to the Postal Service’s unmatched reach. Together, we are building a more flexible, market-responsive model that enhances reliability, supports growth, and positions both organisations for long-term success.”

USPS also has a deal with Amazon: people familiar with the relationship have said that annual package deliveries on behalf of the online marketplace represent around $6 billion for USPS per year.

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