UPS’s US shipments increase 2.5% in Q2

As reported by Internet Retailer:

U.S. Next Day Air volume jumped 5.6% while Ground parcel deliveries increased 2.4%.

UPS Inc.’s parcel deliveries to consumers grew roughly five times faster than its deliveries to businesses in the second quarter, United Parcel Service said Friday.

Average U.S. daily package volume increased 2.5% to 14.929 million in the quarter ended June 30 from 14.565 million in Q2 2015. Within that total, Ground volume increased 2.4% to 12.489 from 12.192 year over year and Next Day Air volume rose 5.6% to 1.311 million from 1.241 million a year ago, UPS says. Average U.S. revenue per package was flat in Q2.

International package volume increased 4.3% to 2.758 million from 2.645 million year over year.

“We are investing to expand our global network, implementing new technologies and capturing new revenue in high-growth markets,” David Abney, UPS chairman and CEO said Friday. ”These strategic investments in our diversified business again this quarter generated strong value for our customers and shareowners.”

To help meet the growing demand and reduce the number of missed deliveries to U.S. consumers’ residences, UPS recently expanded its Access Point locker program. Consumers can opt to have their parcels delivered to “smart” locker locations, which usually are outside and accessible at all hours, and then access the locker with a code sent to their smartphone or by scanning a photo ID to confirm their identity.

For the second quarter ended June 30, UPS also reported:

  • Total revenue rose 3.8% to $14.629 billion from $14.095 billion in the second quarter of 2015. On a currency-neutral basis, revenue increased 4.0%, UPS says.
  • U.S. domestic revenue increased 2.4% to $9.015 billion from $8.808 billion.
  • U.S. ground shipment revenue grew 2.2% to $6.479 billion from $6.339 billion.
  • Deferred Air revenue increased 2.4% to $899 million from $878 million.
  • Next Day Air revenue was up 2.9% to $1.637 billion from $1.591 billion.
  • International revenue increased 1.1% to $3.077 billion from $3.045 billion.
  • Net income increased 3.2% to $1.269 billion from $1.230 billion.

For the six months ended June 30, UPS reported:

  • Total revenue rose 3.5% to $29.047 billion from $28.072 billion in the second quarter of 2015.
  • U.S. domestic revenue increased 2.7% to $18.099 billion from $17.622 billion.
  • U.S. ground shipment revenue grew 2.9% to $13.073 billion from $12.700 billion.
  • Deferred Air revenue increased 2.3% to $1.814 billion from $1.774 billion.
  • Next Day Air revenue was up 2.0% to $3.212 billion from $3.148 billion.
  • International revenue decreased 0.4% to $5.991 billion from $6.015 billion.

Ken Wood is the founder of LJM Consultants. LJM helps clients negotiate “Best in Class” UPS/FedEx agreements. LJM was recently named the “best parcel auditing company in America” and was also inducted into Inc. Magazine’s Top 500/5000 fastest growing companies in America for 2013. To learn how LJM Consultants can help your company get the parcel contract you deserve, call 631-844-9500 or email kenwood@myLJM.com.