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US Postal Service signs multi-year agreement with DHL unit

The U.S. The U.S.

DHL eCommerce, a division of the German logistics giant DHL Group said that the deal would help the company grow in the U.S. over the next few years.

David Steiner, Postmaster-General of the United States, said in an exclusive interview that DHL has the opportunity to "play in the largest market on the planet." He said that DHL would have to "invest a lot of capital" to build an end-to -end network or partner with someone who has the last mile capability, like USPS.

DHL eCommerce will handle pickups and sortation at its 19 U.S. hubs, before USPS completes the "last mile" for all deliveries.

DHL eCommerce Americas' CEO Scott Ashbaugh stated that the deal will help the company grow in the United States, and "target slightly heavier parcels." He said that the company may add more hubs in the United States. Ashbaugh stated that the company expects to roughly double its business by 2030.

The USPS is in dire need of cash and has been warned that it could run out as early as February. Amazon.com announced last month that it had reached an agreement with the U.S. Postal Service on package deliveries. Reporting by David Shepardson

(source: Reuters)