UPS drives growth with international deliveries - MSN
The deliveries of letters, documents, packages and cargo with a destination or origin or both lying outside the U.S. constitute the international delivery segment of United Parcel Service (UPS +0.16%), and we believe this segment will drive the company's long-term growth given the growth of international trade and the quicker economic growth of emerging markets.
In contrast, the domestic U.S. delivery segment, which is currently the most valuable segment, will see comparatively lower rates of growth going forward. And due to the very nature of UPS's business, its rate of growth in a region is highly correlated with the rate of growth of that region's economy as higher business activity translates to greater business communication and merchandise transport.
From 2007 to 2011, revenues at UPS's international delivery segment increased by 19% while revenues at its domestic U.S. delivery segment increased by only 2%. This trend is likely to continue in future and therefore makes international markets increasingly important to UPS.
The deliveries of letters, documents, packages and cargo with a destination or origin or both lying outside the U.S. constitute the international delivery segment of United Parcel Service (UPS +0.16%), and we believe this segment will drive the company's long-term growth given the growth of international trade and the quicker economic growth of emerging markets.
In contrast, the domestic U.S. delivery segment, which is currently the most valuable segment, will see comparatively lower rates of growth going forward. And due to the very nature of UPS's business, its rate of growth in a region is highly correlated with the rate of growth of that region's economy as higher business activity translates to greater business communication and merchandise transport.
From 2007 to 2011, revenues at UPS's international delivery segment increased by 19% while revenues at its domestic U.S. delivery segment increased by only 2%. This trend is likely to continue in future and therefore makes international markets increasingly important to UPS.
