Seldom is there a company that’s as dependent on others as Amazon.com Inc (AMZN) is dependent on Fedex Corp (FDX) or United Parcel Service Inc (UPS). The e-commerce giant sends out over 300 million packages a year and spent $13 billion on fulfillment costs in fiscal 2015. With fast shipping such a key component of Amazon’s business, shareholders should demand a fail-proof shipping service that is scalable and can handle Amazon’s future growth. Neither Fedex nor UPS can provide that service.
- 100 Million Flowers Flow Through UPS Global Logistics Network
- Last Minute Cupids Can Ship as Late as Friday February 12th
Cupid will receive a helping hand this Valentine’s Day, as UPS® (NYSE: UPS) fills its network this week with flowers, steaks, sweets and gifts.
UPS will move more than 100 million flowers or 9 million pounds, to love birds around the United States. That’s enough to fill approximately 70 Boeing 767 cargo aircraft. Many of the roses and tropical flowers originate from Latin American countries, primarily Colombia and Ecuador. More than 90% of the imported flowers will travel through Miami International Airport (MIA) where UPS is the largest air cargo carrier. From the flower farm to the importer, the journey takes less than two days.
When most people think of e-commerce, the first name that leaps to mind is Amazon.com (AMZN). There’s good reason for that: according to Macquarie Research, the retail giant accounted for more than half of all e-commerce growth last year.
Put another way, of every extra dollar Americans spent online in 2015, $0.51 went to Amazon. But be that as it may, Amazon, with its razor-thin profit margins, lack of a dividend and nosebleed P/E ratio of 426, is far from my favorite way to play this trend.
Instead, I prefer a “pick-and-shovel” company that’s about as old school as they come: the 109-year-old United Parcel Service (UPS).
UPS (NYSE: UPS), a global logistics provider and leading advocate for global trade, commends the 12 nations who have come together to sign the Trans-Pacific Partnership (TPP), a pact that is vital to the U.S. economy, supporting global growth and job creation. This action brings the agreement one step closer to the ratification and implementation stage.
“TPP will set the rules of global trade in the 21st century and presents economic growth opportunities for our business and our customers,” said David Abney, CEO of UPS. “TPP is a historic agreement that represents real market opportunities for American companies, workers, and consumers.”