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FedEx will stop air shipments of packages for Amazon

FedEx is dropping a contract for air shipment of packages for Amazon within the United States, reducing its ties with the online retail giant that is already expanding its own delivery business. FedEx said Friday that it will not renew the contract for domestic FedEx Express handling of Amazon shipments when the deal expires June 30.

It’s “a strategic decision” that will let FedEx focus on thousands of other retailers including Target, Walgreens and Walmart, company spokeswoman Katie Wassmer.

In a statement, Amazon said only that it respected FedEx’s decision and thanked the delivery company for serving Amazon customers over the years. Amazon.com Inc. is emerging as a potentially formidable challenger to FedEx Corp. and United Parcel Service Inc.

Amazon has been expanding its fleet of planes and is building package-sorting hubs at two airports. It’s also launching a program that lets contractors start businesses delivering packages in vans bearing the Amazon smile logo.

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