Tag: UPS

Cargo jets carry some risks along with shipments – Group boosts effort to educate senders about unsafe packages

A woman walked into Bruce Bernstein’s Pompano Beach, Fla., parcel shipping store with a box that she said had to arrive before July 4th. Inside were 28 pounds of fireworks, bottle rockets and illegal, high-powered firecrackers known as M-80s.

“It would have taken down a plane no problem,” says Bernstein, recalling an incident from two summers ago that underscores the difficulties private shippers have with keeping hazardous materials off planes.

The Associated Mail and Parcel Centers, which represents over 3,000 small shipping centers, estimates that each year thousands of packages like this one slip unnoticed onto planes all over the USA. The leading industry trade group and the government have stepped up efforts to educate the public about shipping flammable goods.

The rapid growth in shipments has made it increasingly difficult to police what goes into packages that crisscross the nation, the association says. Its members are small stores that pack items and funnel packages to the large shipping companies. They handle 29 million packages a year.

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UPS Announces 2007 Rates. New Pricing to take effect after 2006 holiday shipping season

UPS today announced new list rates for 2007, including an average 4.9 percent increase for ground shipments and a net average increase of 4.9 percent on all air express and U.S. origin International shipments.

The increase for air express and international shipments is based on a 6.9 percent increase in the base rate, less a 2 percent reduction in the current fuel surcharge. The new rates will be posted online at UPS.com on Dec. 1 to provide customers details about changes to specific products and zones and will take effect on Jan. 1, 2007, after the 2006 holiday shipping season.

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UPS plans more international acquisitions

UPS will continue to buy express and parcel companies around the world to expand its highly profitable international business, according to senior executives. At the same time, it aims to grow its air freight and supply chain logistics activities to penetrate its large customer base more deeply.

“We will make acquisitions as we see fit around the world,” CEO Mike Eskew told the company’s November 8 Investor Day conference. Chief Financial Officer Scott Davis added that UPS saw “ acquisition opportunities” in the global small package business but stressed the company would be careful in selecting these takeovers.

Davis pointed out that UPS aimed for International to grow to 33% of operating profits by 2010 compared to 24% in 2006, with supply chain doubling to 7% and domestic operating profits dropping from 73% to 60% of overall operating income. UPS aimed to maintain or extend its international profit margins and maximise international operating profits, he added.

David Abney, head of UPS’s international business, said in a presentation that Europe now generated about 50% of UPS’ international revenues, ahead of 30% for the Americas (including US exports) and 20% for Asia. In Europe, UPS aimed to grow organically and through selective acquisitions, while deepening customer relationships and differentiating products in core markets such as Germany and the UK.

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UPS prepared for surge in holiday package shipping

UPS’s long-standing role as Santa’s busiest helper will continue this holiday season with projected package volume swelling from roughly 15 million packages a day to more than 21 million on the busiest day.

On UPS’s Peak Day, which will occur this year on Wednesday, Dec. 20, UPS will deliver 240 packages every second through its worldwide ground and air network. Just two days later on Dec. 22, UPS will handle its largest volume of air shipments for the year by delivering roughly 5.6 million packages. That amounts to more than double the normal average for air volume.This year, UPS and various retail analysts are predicting strong growth in the online shopping world along with solid gains in the brick-and-mortar arena. UPS enters the holiday peak – defined as the period between Thanksgiving and Christmas – as the primary shipper for 21 of the top 25 e-retailers as ranked by Internet Retailer Magazine.

In the process of delivering all those holiday packages, UPS will apply its tracking technology to make it easy for customers to monitor the movement of their gifts. UPS expects more than 130 million online tracking requests during Peak Week and the daily total could exceed 25 million on Peak Day.

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eBay proves virtual gold mine for Postal Service

Carol Johnson, of Centennial, laughs loudly when asked by telephone how she ships the products she sells on eBay.
“That’s what I’m doing right now,” she says.
“Fifteen of my items ended (their auctions) last night, and I’m wrapping them up.”
Johnson, as it turns out, is the quintessential eBay seller: She ships mostly via the U.S. Postal Service but uses United Parcel Service and Federal Express on occasion, especially for large items.
eBay has been a boon to shipping companies, expanding business for the likes of the Postal Service, UPS, FedEx and others.
Says eBay spokeswoman Catherine England: “We’re definitely a big contributor” to the U.S. package shipment industry.
The U.S. Postal Service is the clear shipper of choice and that’s helped resuscitate a flagging mail- delivery operation.
Postmaster General John Potter says eBay shippers have generated more than USD1 billion of postage since the two started working closely together more than two years ago.
“We’re huge with them, and we appreciate being with them,” says Al DeSarro, the Colorado spokesman for the Postal Service.

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