CNF Transportation, parent of the U.S. Postal Service’s Priority Mail contractor, is threatening to sue the USPS if they can’t resolve their dispute over pricing and operational issues.
The company, which operates Emery Worldwide, Con-Way Transportation, Menlo Logistics and Road Systems, is challenging a decision by the USPS to pay provisional rates on each route instead of a flat fee nationally, which it claims is below its costs.
It is negotiating with postal officials on a daily basis, Gregory L. Quesnel, president/CEO said in a statement that noted “while every attempt is being made to conclude the negotiations in a beneficial manner, the company will pursue litigation should [those] negotiations fail.”
There was no immediate comment on the situation from postal officials.
Although the Palo Alto, CA-based trucking company, previously known as Consolidated Freightways, reported a break-even results for the fourth quarter on revenue of $200.9 million for its Priority Mail operations, up 19% from a year earlier, it says that it has not made a profit on the contract since the second quarter of 1999.
Overall, the company said that its fourth quarter income totaled $1.57 billion, up 14 % from a year earlier, and that revenue for 1999 totaled $5.59 billion, Operating income totaled $359.1 million.
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