What's Happening With UPS' Ground Business? - NASDAQ

cheryl

I started this.
Staff member
What's Happening With UPS' Ground Business? - NASDAQ

Ground shipments, primarily residential deliveries, have been in focus for United Parcel Service (NYSE:UPS) over the recent quarters. The pandemic resulted in people being confined to their homes and there was a surge in e-commerce activities, bolstering the ground shipments for UPS as well as FedEx, especially in 2020. For perspective, average daily package volume for ground shipments rose 14.5% y-o-y to 17.4 million in 2020. This clubbed with a 4% rise in average revenue per piece for ground shipments meant total ground segment revenues grew 20% over the same period.

However, the situation has changed over the last year or so. The vaccination rate has been on a gradual rise with nearly 60% of the U.S. population currently vaccinated against Covid-19. This has resulted in economies opening up gradually, and people have started to venture out of their homes. This also impacted the ground shipment volume for UPS. The company reported a 2.5% decline in volume in Q3 this year, though the volume remained higher by 2% for the nine month period ending Sep 2021. Despite slowing growth in ground shipment volume, UPS managed to post segment revenue growth of nearly 14% thus far in 2021, driven by better price realization.
 

Fred's Myth

Nonhyphenated American
What's Happening With UPS' Ground Business? - NASDAQ

Ground shipments, primarily residential deliveries, have been in focus for United Parcel Service (NYSE:UPS) over the recent quarters. The pandemic resulted in people being confined to their homes and there was a surge in e-commerce activities, bolstering the ground shipments for UPS as well as FedEx, especially in 2020. For perspective, average daily package volume for ground shipments rose 14.5% y-o-y to 17.4 million in 2020. This clubbed with a 4% rise in average revenue per piece for ground shipments meant total ground segment revenues grew 20% over the same period.

However, the situation has changed over the last year or so. The vaccination rate has been on a gradual rise with nearly 60% of the U.S. population currently vaccinated against Covid-19. This has resulted in economies opening up gradually, and people have started to venture out of their homes. This also impacted the ground shipment volume for UPS. The company reported a 2.5% decline in volume in Q3 this year, though the volume remained higher by 2% for the nine month period ending Sep 2021. Despite slowing growth in ground shipment volume, UPS managed to post segment revenue growth of nearly 14% thus far in 2021, driven by better price realization.
Sounds vaguely familiar, @cheryl.

What’s Happening With UPS’ Ground Business? - TREFIS

Ground shipments, primarily residential deliveries, have been in focus for United Parcel Service (NYSE:UPS) over the recent quarters. The pandemic resulted in people being confined to their homes and there was a surge in e-commerce activities, bolstering the ground shipments for UPS as well as FedEx, especially in 2020. For perspective, average daily package volume for ground shipments rose 14.5% y-o-y to 17.4 million in 2020. This clubbed with a 4% rise in average revenue per piece for ground shipments meant total ground segment revenues grew 20% over the same period.

However, the situation has changed over the last year or so. The vaccination rate has been on a gradual rise with nearly 60% of the U.S. population currently vaccinated against Covid-19. This has resulted in economies opening up gradually, and people have started to venture out of their homes. This also impacted the ground shipment volume for UPS. The company reported a 2.5% decline in volume in Q3 this year, though the volume remained higher by 2% for the nine month period ending Sep 2021. Despite slowing growth in ground shipment volume, UPS managed to post segment revenue growth of nearly 14% thus far in 2021, driven by better price realization.
 
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