FedEx dumps Amazon from air cargo service as rivalry grows

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FedEx dumps Amazon from air cargo service as rivalry grows
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FedEx says it isn't renewing its US contract with Amazon to transport packages on FedEx Express

FedEx announced Friday that it isn't renewing its US contract with Amazon to transport packages on FedEx Express. The move comes as FedEx and Amazon compete more directly in delivery logistics. Amazon is under increased pressure to deliver packages quickly. In April, Amazon said it planned to begin delivering packages to Prime customers in one day rather than two. FedEx followed up in May with plans to deliver seven days a week.

FedEx faces more trade headwindsA FedEx spokeswoman told CNN Business the decision impacts only air transportation. Other contracts between FedEx and Amazon remain intact.Read More"We respect FedEx's decision and thank them for their role serving Amazon customers over the years," Amazon said in a statement. The contract ends June 30.The two companies increasingly compete across several areas.

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