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UPS could improve its delivery services if the United States Postal Service began selling rights to access mailboxes as recommended by the Trump administration, Chairman and CEO David Abney told CNBC on Wednesday.
"We look at that as a very positive step, and we think it helps the consumer, because no one wants to get a delivery notice at their door saying they didn't get a package," he said on "Squawk Alley." "If [we] get mailbox access, [we] can just provide much better service."
Earlier this month, the Treasury Department proposed that the federal postal service license mailbox access to private entities. The proposal was part of a task force, formed after an executive order by President Donald Trump, that looked into the operations and finances of the cash-strapped agency.
Congress enacted a mailbox restriction for USPS in the 1930s, a mailbox monopoly the task force said is "highly valuable" and could create an additional revenue stream.
"We have a great relationship with our customers," Abney said. "We go to most everyone's houses, but getting access to the mailbox would be an even closer connection."
Last week, the transports sector had its worst days of trading in more than 7 years, and UPS has tumbled about 11 percent from a December high to find itself in correction territory.
Morgan Stanley recently lowered its price target for UPS from $92 to $87. The stock was trading at about $102 as of Wednesday afternoon.