Industry News

UPS gears up for record volumes this peak season

By October 23, 2019 No Comments
  • UPS reported 28% growth in U.S. operating profit year-over-year on the back of 9% growth in U.S. daily volume, in the company’s third quarter earnings release Tuesday

  • The boost in operating profit (the highest in the company’s history, according to CEO David Abney) is due to investments in automation, customer shifts toward faster shipping speeds and new “optimized procurement practices.” These practices led the carrier to adjust expected capital expenditures down by $500 million for both 2019 and 2020.

  • The bulk of UPS’ much-lauded transformation is over now that nearly 80% of packages are handled in automated facilities. That figure will reach 85% in 2020, reported Chief Information and Engineering Officer Juan Perez

 

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