WESTON, Fla. — DHL eCommerce and the United States Postal Service have entered a long-term exclusive agreement for last-mile parcel delivery in the U.S., with an expected value well over $10 billion.
The multi-year contract extends a 25-year partnership and makes USPS the sole provider of final delivery for DHL eCommerce domestic parcels. Under the arrangement, DHL eCommerce manages nationwide pickup, sorting at its 19 automated hubs and linehaul transport via air and ground networks before handing packages to USPS for the last mile.
The Postal Service’s network reaches more than 41,550 ZIP Codes and more than 170 million delivery points six days a week. This reach supports deliveries in both urban and rural areas, including Southern Maryland counties where many residents and businesses rely on consistent parcel service for online orders.
“This agreement creates a dependable, long-term platform for our customers,” said Scott Ashbaugh, CEO of DHL eCommerce Americas. “Working with USPS allows us to serve communities nationwide in a highly efficient way, minimizing 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.”
Postmaster General and CEO David Steiner said the deal marks a milestone. “Today marks an exciting milestone in the evolution of our 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. 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 organizations for long-term success.”
The agreement allows DHL eCommerce to focus on its first- and middle-mile operations while using USPS for final delivery. DHL eCommerce, a subsidiary of Deutsche Post DHL Group, serves medium- to high-volume business-to-consumer online retailers with domestic and international shipping.
For Southern Maryland, the partnership supports the region’s growing e-commerce activity. Residents in Calvert, Charles and St. Mary’s counties frequently receive packages through USPS routes that serve both suburban and more rural delivery points. Local businesses that ship products or receive supplies stand to benefit from the established network’s reach and frequency. The deal also aligns with efforts to limit additional delivery vehicles in communities where traffic and emissions are concerns.
USPS has pursued similar partnerships with other carriers to strengthen its financial position and network efficiency. The DHL arrangement adds to revenue from parcel volume while leveraging existing infrastructure.
DHL eCommerce said the collaboration positions it to expand in the U.S. market by fully using its automated hubs and transport network alongside USPS last-mile capabilities. The companies did not disclose the exact contract length but described it as the longest and most scalable in their history.
Customers of DHL eCommerce can continue to use its services for pickup, tracking and delivery, with USPS completing the final step for domestic parcels.
