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The Latest UPS Headlines
UPS' intentional approach to tight capacity will mean higher rates for shippers: UBS
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<blockquote data-quote="cheryl" data-source="post: 4587515" data-attributes="member: 1"><p><a href="https://www.supplychaindive.com/news/ups-capacity-rates-ubs-pandemic/583773/" target="_blank"><strong>UPS' intentional approach to tight capacity will mean higher rates for shippers: UBS - Supply Chain Dive</strong></a></p><p><strong></strong></p><p><strong>Dive Brief:</strong></p><ul> <li data-xf-list-type="ul">A combination of tight capacity and rising volume means logistics costs will continue to "improve" in UPS' favor, according to a research note from UBS, penned after a meeting between analysts at the bank and UPS' investor relations team.</li> <li data-xf-list-type="ul">"UPS is transitioning to a slower pace of capacity addition in 2021 and we believe broader package industry capacity expansion is also likely to be modest," the research note reads. "Assuming a backdrop of economic growth in 2021, we believe the package market is likely to remain tight and support a path of pricing gains for UPS."</li> <li data-xf-list-type="ul">UBS expects UPS' revenue from surcharges to be "significant," but the carrier didn't provide any guidance on the expected size of its peak surcharge revenue.</li> </ul></blockquote><p></p>
[QUOTE="cheryl, post: 4587515, member: 1"] [URL='https://www.supplychaindive.com/news/ups-capacity-rates-ubs-pandemic/583773/'][B]UPS' intentional approach to tight capacity will mean higher rates for shippers: UBS - Supply Chain Dive[/B][/URL] [B] Dive Brief:[/B] [LIST] [*]A combination of tight capacity and rising volume means logistics costs will continue to "improve" in UPS' favor, according to a research note from UBS, penned after a meeting between analysts at the bank and UPS' investor relations team. [*]"UPS is transitioning to a slower pace of capacity addition in 2021 and we believe broader package industry capacity expansion is also likely to be modest," the research note reads. "Assuming a backdrop of economic growth in 2021, we believe the package market is likely to remain tight and support a path of pricing gains for UPS." [*]UBS expects UPS' revenue from surcharges to be "significant," but the carrier didn't provide any guidance on the expected size of its peak surcharge revenue. [/LIST] [/QUOTE]
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UPS' intentional approach to tight capacity will mean higher rates for shippers: UBS
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