Chief Financial Officer Richard Peretz said in a post-earnings conference call with analysts that while third-quarter U.S. delivery stops and volume increased 5.7% from a year ago, with the help of ORION, delivery miles traveled rose just 1.4%. He told MarketWatch in a phone interview, that for each mile saved per day, on average, annualized savings are about $50 million. “Orion is saving us about six and seven miles per driver per day,” Peretz said, which translates to annual savings of about $300 million to $350 million.
New Cargo Aircraft Add Fleet Capacity and Flexibility in UPS Global Air Network
UPS (NYSE:UPS) today announced it has ordered 14 new Boeing 747-8 cargo jets to meet increased demand for the company’s air shipping services. UPS’s long term strategy is to increase customers’ access to global markets and air shipments are a major growth opportunity for the company. The 747-8s will enable UPS to begin a cascade of aircraft route reassignments that will add significant air capacity to the company’s busiest lanes, thereby optimizing global air network capacity well beyond the impact of adding new cargo jets.
- UPS forecasts record holiday delivery of more than 700 million packages
- Black Friday-to-New Year’s Eve deliveries up more than 14% with two more operating days from 2015
- 13 of 21 holiday delivery days before Christmas to exceed 30 million packages
- New temporary processing facilities and operational technology increase capacity, efficiency and flexibility
- 3Q16 Diluted Earnings per Share Increased to $1.44
- U.S. Domestic Deliveries per Day Climb 5.7% Driven by Ecommerce
- Deferred Air Shipments Jump 10% and Next Day Air Increased 5.9%
- International Operating Profit up 14% on Daily Package Growth of 7.5%
- Daily Export Shipments up 7.1% Led by Double-Digit Gains in Asia
- Total UPS Revenue up 4.9% with Headwinds from Fuel and Currency
A little past 10 p.m., the first of United Parcel Service’s (UPS) Boeings begins its descent into a hub within the airport complex in Cologne, Germany, while the rest of Europe goes to sleep.
It is this hub in Cologne that not only serves as a centerpiece of the international logistics firm’s operations in Europe, but also a gateway to an extended express network serving the entire globe. It is this cohesive display of operations that allows UPS to handle day by day 2 percent of the world’s gross domestic product, or about 190,000 packages per hour, while half of the world is awake and the other half is asleep.