UPS Inc. is close to an agreement with DHL's U.S. Express unit to carry air shipments for some DHL units within the United States.
The news is according to an announcement Wednesday made by UPS (NYSE: UPS), the world's largest shipping carrier.
UPS expects the deal with DHL to add up to $1 billion in annual revenue. The agreement is expected to last up to 10 years and covers express, deferred and international packages, but not freight.
UPS also will transport DHL air packages between the U.S., Canada and Mexico.
The move is not expected to increase UPS' share of the air express market. UPS has the largest ground network in the U.S., but FedEx Corp. has the nation's largest air express package business.
News from DHL says the company is slashing network capacity in the U.S. by 30 percent. DHL's U.S. business has posted repeated losses and slipping sales as it continues to lose market share to UPS and FedEx Corp.
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