UPS Launches New Flights to China - According to economic and industrial experts, China will become the world's second largest economy within 11 years and the largest by 2039.
UPS (NYSE:UPS) this week began the first of 12 new flights to China with MD-11 service to Shanghai. The new flights will triple the current service from six to 18 flights a week and comes on the heels of UPS's impressive 129% growth in China export volume in the third quarter.
"Thanks to these flights, we are moving ahead of customer demand with even greater access to the world's fastest growing economy," said David Abney, president, UPS International. "China is probably the most exciting business opportunity in a generation and our growth numbers from the country show that customers are turning to UPS for the efficiency and reliability of its worldwide network."
According to economic and industrial experts, China will become the world's second largest economy within 11 years and the largest by 2039. The country already is the world's largest market for mobile phones and a key center for the production of textiles, computer chips and other high-tech items.
UPS has been serving China since 1988 and is the only U.S. cargo carrier providing daily, non-stop service to and from the United States and China, which started when the company was first granted China aviation rights in 2001. These most recent grants of access will increase UPS's Shanghai service to 12 flights per week. Then next year, UPS will inaugurate the remaining six flights to provide the first-ever non-stop service between the U.S. and Guangzhou in the fast-growing Pearl River Delta.
"With the additional flights to Shanghai and Guangzhou and our plans to establish a hub in Shanghai, UPS will be offering its customers extraordinary access to this critical, seven-day-a-week economy, " Abney added. "In addition, UPS is offering enhanced access to the fast-growing intra-Asia trade through the company's hub in the Philippines."
According to the latest economic projections*, intra-Asia trade also is expected to grow rapidly in coming years. In its most recent quarter, UPS reported a 29% increase in export volume across the Asia Pacific Region.
To facilitate that growth, UPS recently launched an additional six weekly flights between Hong Kong and its intra-Asia hub in Clark Field, the Philippines. UPS customers now can take advantage of even greater flexibility provided by "double-daily" flights from Hong Kong, via Singapore to Clark and the rest of Asia. All of Asia's top countries are within a four-hour flight from UPS's intra-Asia hub.
In another international development, UPS has just increased its aircraft capacity in Latin America to Honduras, Nicaragua, El Salvador and Costa Rica. The new service is built around the addition of a Boeing 757 jet serving San Pedro Sula in Honduras six days a week.
UPS is the world's largest package delivery company and a global leader in supply chain services, offering an extensive range of options for synchronizing the flow of goods, information and funds. UPS's stock trades on the New York Stock Exchange (UPS) and the company can be found on the Web at www.ups.com.
* MergeGlobal, a logistics and strategy consulting firm, predicts intra-Asia trade will grow at a rate of 16.8% annually through 2005.