UPS: Air Shipments on the Decline
June 19, 2008 – 10:34 pmUPS is reporting a decline in overnight, 2nd and 3rd day express air shipments and a rise in ground shipments, apparently as companies look for ways to trim costs of the bottom line. Competitor FedEx is also reporting similar experiences.
From The Washington Post:
UPS said the average number of daily domestic overnight air shipments it handled slipped 3.8% in the latest quarter compared with a year earlier, while less profitable ground deliveries edged 0.3% higher. Overall U.S. volume was flat. FedEx saw domestic overnight shipments fall 7% for envelopes and 1% for boxes in the latest quarter, compared with last year. Overall average daily U.S. volume declined 3%.
Surely the companies are happy to see their most profitable products used less and their least profitable products getting bought more. Thats always something to make the investors happy.