NEW YORK (CNNfn) - FedEx Corp. is nearing a strategic alliance with the U.S. Postal Service, The Wall Street Journal's Web site reported Monday.|
The deal, which has been under negotiations for six months, would have FedEx hauling Priority mail and Express mail categories for the post office. Details of the plan are expected to be presented to the Postal Service's Board of Governors at a meeting Monday in Washington, the Journal said.
"Talks between FedEx and the postal service are progressing but no final agreement has been reached," said FedEx spokesman Greg Rossiter.
Memphis, Tenn.-based FedEx (FDX: Research, Estimates) declined to comment if the Postal Service discussed the negotiations at its Board of Governor's meeting.
The U.S. Postal Service could not be reached for comment.
In September, CNNfn.com reported news of the alliance which at the time included the Postal Service handling some of FedEx's lower-cost ground deliveries. The Journal reported Monday that the negotiations have narrowed in scope and do not include plans for the post office to deliver slow-moving ground parcels for FedEx in rural areas. However, a source close to FedEx disputed that claim and said the talks have not narrowed.
FedEx and the Postal Service have been in discussions for several months. In September, Postmaster General William Henderson said the post office would not be delivering any of FedEx's core overnight or two-day packages, which include delivery guarantees. Instead, the postal service would get involved in the company's at-home delivery of deferred packages that take up to five days to arrive.
FedEx only reaches about half of the nation's homes with that product today, and doesn't anticipate achieving nationwide coverage until 2002.
FedEx fell by 68 cents to close at $43.13 Monday.