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Category: Logistics

Retail News Asia is committed to providing both local and global retailers with the latest Logistics news throughout the Asian market. This on a daily base.

  • South Korea joins DHL’s Asia-Europe multimodal network for more flexible freight services

    South Korea joins DHL’s Asia-Europe multimodal network for more flexible freight services

    DHL Global Forwarding, the leading international provider of air, sea and road freight services, has connected South Korea to its comprehensive Asia-Europe multimodal network, giving Korean businesses more flexible and efficient access to the country’s third-largest export market.1

    As part of the extension, new ferry services link ports in Incheon and Busan to a range of major Chinese ports including Shanghai, Taicang and Lianyungang. South Korean shipments will then travel via truck to major inland hubs in cities including Chengdu, Hefei, Suzhou and Xi’an for subsequent transport to Europe on DHL’s rail services. Korean businesses will also gain access to DHL’s Flexigateway service, which selects the optimal rail route for shipments based on available capacity and route speed at any given time — giving them clearly-defined transit times at the most efficient operating cost.

    “With South Korean exports to Europe this year growing at their fastest pace since 2011,2 the country’s major industries have greater need for flexible, scalable freight services than ever before,” said Charles Kaufman, CEO, North Asia; Managing Director, Japan; and Head, Value Added Services, Asia Pacific, DHL Global Forwarding. “While its level of global connectedness has remained relatively stable over the past few years,3 South Korea must continue to invest in deeper trade ties — and the infrastructure that sustains them — to key partners like the European Union and China if it wants to maintain its record of economic growth and development.”

    “Our new offerings like Flexigateway, combined with the range of value-added services already built into our multimodal network, seek to streamline and stabilize the logistics process for Korean businesses of all sizes.”

    DHL’s Asia-Europe multimodal services include specialized solutions for some of South Korea’s largest industries,4 including

    • Car racking and expert handling for automotive exporters;
    • Garment-on-hanger services for the fashion industry;
    • Temperature-controlled containers for technology manufacturers; and
    • Licenses, labelling, and dedicated warehousing for wine and spirits producers.

    The multimodal network is also supported by features including end-to-end customs handling, GPS tracking of containers and a range of cargo insurance options, minimizing the risks of delays and disruption for both full- and less-than-container load shipments on any route.

    “South Korea’s economy continues to rely heavily on value-added exports to grow, and reinforcing its existing trade partnerships will help it continue to weather global uncertainty,” said Seokpyo Song, Managing Director, DHL Global Forwarding Korea. “This new connection to our Asia-Europe multimodal network will not only improve the fundamentals of freight flexibility, cost and reliability for Korean businesses — it also directly addresses the unique needs of our country’s most crucial and well-regarded industries, giving them the confidence to pursue greater expansion overseas.”

    DHL continues to expand its Asia-Europe multimodal network to meet rapidly-growing demand from businesses in both regions, with the company launching its latest route — from Shenzhen to Minsk — in May 2017.

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  • Kerry launches new UK-China rail freight service

    Kerry launches new UK-China rail freight service

    Kerry Logistics Network announced the launch of its weekly scheduled Less Than Container Load (LCL) rail freight service between Duisburg, Germany and Shanghai via the Yiwu terminal in the Yangtze River Delta, China, using its own consolidation containers.

    This additional service option for east- and westbound shipments enhances Kerry Logistics’ existing Full Container Load (FCL) and LCL services, offering a transit time of 16 days for westbound cargo, and 21 days eastbound.

    Shipments have already been successfully moved using the new service, which offers weekly departures on Friday eastbound and Wednesday westbound.

    The rail freight solution is part of Kerry Logistics’ end-to-end freight management service, which provides an unrivalled range of upstream services, including storage, quality control, assembly, and reworking in addition to the pre-carriage and delivery to final destination.

    Thomas Blank, managing director of Europe, Kerry Logistics, said, “Our proven track record and unparalleled service network in Asia, together with our local expertise throughout Europe, promise that we can now offer our customers a flexible, cost-effective solution on this route for cargoes from industrial freight, down to smaller e-commerce commodities.

    “Acting as the consolidator ourselves allows us to offer shorter lead times, moving each shipment faster than if we had to wait for a full container from each customer, who can monitor their cargo along the route via online track and trace.

    “We can be more reactive to our customers’ rapidly evolving needs,” Blank added.

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  • Ceva achieves CEIV certification in Singapore

    Ceva achieves CEIV certification in Singapore

    Ceva Logistics has been awarded IATA’s CEIV status at its facility in Singapore. CEIV is designed to indicate a company or branch’s level of competency as well as operational and technical preparedness in the global transportation by air of pharmaceutical products. A certified pharmaceutical location meets consistent standards and is fully capable of assuring product integrity.

    CEVA staff in Singapore have undertaken a comprehensive training program conducted jointly by IATA and Changi Airport Group, in readiness for certification. A quality team was established at the company’s facility at the Air Logistics Park of Singapore (ALPS) within the Free Trade Zone and this group coordinated and implemented the CEIV process.

    “Our 90,000 sq feet facility is fully accredited for the full range of active and passive temperature ranges,” says Michael Yip, SVP Freight Management of CEVA’s South East Asia cluster. We are the largest user and operator of active RKN e1 equipment outbound from Singapore and this new CEIV status recognises the full scope of our capabilities”.

  • Fusionex wins contract with Asian logistics and communications provider

    Fusionex wins contract with Asian logistics and communications provider

    Fusionex, a software solutions provider specialising in Big Data Analytics (BDA), the Internet of Things (IoT), Artificial Intelligence, and Deep Learning, has won a multi-million dollar multi-year contract to deliver a data management solution for an Asian logistics and communications service provider to revamp how it engages with customers.

    The client is one of the leading logistics and communications providers with a presence in more than 1,000 locations nationwide. Among the services offered by the client are 24-hour outlets, self-service terminals, mobile outlets, postal agents, and stamp agents.

    In line with the client’s plans to revolutionise their businesses processes and bolster their ability to compete in a modernising world, the data-driven customer relationship and analytics solution is intended to increase the user-friendliness of their services and simplify their interactions with customers.

    Operating such a huge organisation with outlets across multiple locations proved to be cumbersome especially when seeking to craft overall corporate strategies from disparate datasets. Each location had their own set of data idling in physical storages and legacy IT systems which were also hard to access due to differing formats.

    The types of customers who were catered to in those various locations also differed based on age, gender, income, whether they lived in urban or rural areas, and other demographics. Consolidating all their customer engagements into a single platform would help the client tremendously in automating their customer engagement processes and streamlining their response times.

    Previously, customer engagement officers were only able to view records available to each particular branch, but now they can see all records of their engagements with specific customers, thanks to the consolidated platform. Now, when a customer calls a branch, the officer in charge would be able to see the customer’s entire call history including calls to other branches, and what complaints had been made before – all on a single screen.

    This will help improve customer engagement quality and response time, where the customer’s complaints can be dealt with the instant the phone is picked up, rather than having to check with a colleague or a superior and then getting back to the customer at a later time. This consolidated solution will also be applied to the client’s subsidiaries, bestowing them with the convenience of streamlining customer information at a greater pace.

    Data management and insights mining will also be carried out for the client via Big Data Analytics platform Fusionex GIANT 2017. This platform will help the client draw data related information to its customers, vendors, suppliers, and internal business processes. From all this disparate data, GIANT 2017 can piece together past patterns and make predictions of future trends.

    This gives the client the ability to gain insights into everything that’s happening within the organisation, as well as foresights into the future and how the organisation can adapt. The client will also be able to craft new products and services, decide on expansion plans, and other strategic moves with more accuracy, confidence, and a higher chance for success.

    Ivan Teh, Fusionex managing director and chief executive officer, commented: “The team is excited and can’t wait to roll out our solution to give the client a greater edge over their competition. IT solutions have the potential to be game changers in this day and age and we believe the client will begin reaping immense benefits from the get go once this project goes live.”

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  • Crown Equipment expands Shanghai operations

    Crown Equipment expands Shanghai operations

    Crown Equipment Corporation is expanding in Shanghai with a new facility to support growing customer needs in the region. The facility includes space for extensive new equipment inventory, a parts distribution centre, training facility for mainland China, technology demonstration centre as well as local sales, parts and customer service operations for the Shanghai area.

    “The new location is vital to support our customers’ evolving needs in China,” said Tom Kieffer, managing director of commercial operations, Crown Equipment. “Our goal is to become the first choice of our customers, which requires that we have outstanding parts and truck availability to provide excellent customer support. Our new facility provides the expansion needed to achieve this goal.”

    The facility’s technology demonstration centre is designed to help customers make informed purchasing decisions when it comes to advanced material handling equipment and technology needed to increase the productivity of their operations. The centre will showcase the latest forklifts and technology from Crown, including the QuickPick Remote order picking system that uses automated truck navigation technologies to reduce low-level order picking walk steps, and Crown’s InfoLink wireless operator and fleet management system.

    Along with having access to a complete selection of Crown’s award-winning forklifts and Integrity Parts and Service System, customers can take advantage of Crown’s Demonstrated Performance Training programs that offer a comprehensive range of forklift training formats for operators, supervisors, trainers, technicians and pedestrians.

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  • Global maritime shipping industry at the tipping point of digitisation

    Global maritime shipping industry at the tipping point of digitisation

    The maritime industry and broader ocean supply chain are suffering from major and costly inefficiencies due to ineffective data sharing and poor cross-industry collaboration, according to a new report and industry survey released by the Business Performance Innovation (BPI) Network in coordination with Navis and XVELA, both part of Cargotec’s Kalmar business area.

    The study, “Competitive Gain in the Ocean Supply Chain: Innovation That’s Driving Maritime Operational Transformation”, finds huge opportunities to improve performance and customer service through better use of technology across the ocean supply chain.

    The study is based on a global survey of more than 200 executives and professionals from terminal operators, carriers, logistics providers, vessel owners, port authorities, shippers, consignees and other members of the global ocean supply chain. It was developed in partnership with maritime industry technology leaders Navis and XVELA.

    The study indicates that importers, exporters, container carriers, terminal operators, vessel owners and other stakeholders suffer from poor visibility and predictability around shipments and are losing money due to a lack of partner synchronisation and insufficient data insight.

    However, there is recognition, particularly among industry leaders interviewed, that digitisation and mindset shifts are afoot, and will be a boon to all players in the industry. “Everyone benefits from collaboration and data sharing,” says Andreas Mrozek, Global Head Marine & Terminal Operations for the Hamburg Sud Group, one of the world’s largest container shipping lines. “It starts with the customers and moves to the carriers, then the terminal operators, vendors, freight systems, truck companies, and keeps going down the line. Closer collaboration is a compelling value proposition for each supply chain partner.”

    90 percent of survey participants said real-time data access and information sharing was important to increasing the efficiency and performance of the shipping industry. Some 80 percent said the industry needs to improve supply chain visibility.

    The push for improvements will likely come from a combination of forces, according to industry executives. Shippers will push for better operational visibility; alliances will demand better ways for their carrier members to share information to improve efficiencies and customer service; and terminals and port authorities under pressure to increase utilisation and optimise existing infrastructures.

    On average, surveyed executives estimated that each of a wide range of ocean supply chain processes could be improved by as much as 66 percent and no less than 55 percent if the industry updated its IT systems and improved its ability to share data with other members of the supply chain.

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  • Etihad partners with DHL to enhance MRO logistics

    Etihad partners with DHL to enhance MRO logistics

    Etihad Airways Engineering, the largest commercial aircraft maintenance, repair and overhaul (MRO) services provider in the Middle East, has signed a Letter of Intent with DHL Supply Chain, the contract logistics specialist within Deutsche Post DHL Group, to outsource its entire internal logistics functions.

    DHL Supply Chain will manage stores, local transport movements and associated supply chain planning at the Etihad Airways Engineering hub at Abu Dhabi International Airport.

    Jeff Wilkinson, chief executive officer of Etihad Airways Engineering, said: “We see this agreement as a win-win opportunity not just for Etihad Airways Engineering and DHL Supply Chain, but also for our customers around the world who will be served more efficiently and cost effectively as an outcome of the partnership.”

    David Christmas, CEO DHL Supply Chain Middle East, Russia & Turkey, said: “This is a significant business win for DHL in the United Arab Emirates. We have a long-standing relationship with Etihad Airways Engineering, which will continue to maintain our aircraft. Our new partnership will build on and broaden this relationship, synergizing the unique strengths of each partner to maximize efficiency and profitability.”

    “The supply chain performance and solution has a major impact on the effectiveness of the MRO function. Our expertise and services will help Etihad Airways Engineering to progress towards its vision and meet its strategic agenda effectively. Transforming the MRO logistics and warehousing solution will help them to remain competitive today and build capability for tomorrow.”

    The supply chain will be scalable in order to respond to MRO sector growth and will be able to adapt to future operational requirements. By introducing logistics planning and control, DHL brings robust processes to Etihad Airways Engineering’s supply chain to which aligned storage capacity planning and inventory policies compose a major element. Response lead times will be reduced through efficient pick processes and performance indicators for every logistics and warehousing function. Apart from process optimization, DHL will also introduce several changes in the layout of Etihad’s current warehouse, improving the space already available and setting up an external off-airport warehouse able to accommodate necessary inventory and part storage.

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  • XPO Logistics awarded contract by Fujitsu

    XPO Logistics awarded contract by Fujitsu

    XPO Logistics has been awarded a new contract by Fujitsu General Air Conditioning (UK) to provide supply chain and specialist transport services across the UK for Fujitsu’s commercial air conditioning units.

    One-man and two-man crews will deliver the units to offices and industrial buildings both as direct orders and via distributors. In securing the contract, XPO worked in collaboration with Fujitsu to design an optimal solution for the company and its customers. XPO will accommodate 4,000 pallets of air conditioning units on site at its warehouse in Aylesford, Kent, using bespoke technology to track shipments inbound from non-UK markets. XPO will flex its transport and logistics resources to accommodate seasonality, transporting an estimated 11,000 pallets annually using its warehouse management technology to manage flows, control stock levels and report on performance.

    Ian Carroll, sales director of Fujitsu General Air Conditioning (UK), said: “XPO Logistics have enabled us to go above and beyond what we’ve previously been able to do.” He continued: “By offering online tracking of shipments, a mobile app for our customers and considerable transport capability we are able to fulfil client orders more efficiently and accurately, with clear visibility as to shipment progress, which leaves us free to focus on growing our business.”

    Operating from ten depots with an extensive network of fleets and drivers, XPO’s specialist delivery network covers mainland UK and is supported by a central customer service team in its Birmingham hub.

    Dave Finnie, business unit director at XPO Logistics, said: “We share Fujitsu’s commitment to superior customer service and productivity. Our teams have brought together their industrial expertise in value-added warehousing, inventory management and specialist transport to create a bespoke solution for Fujitsu. These complex deliveries will be facilitated by our leading IT solutions, including mobile applications that manage flexible and timed deliveries for the best possible customer experience.”

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  • CEVA opens an office in Myanmar

    CEVA opens an office in Myanmar

    As part of its strategic expansion in the emerging Mekong markets, CEVA Logistics, one of the world’s largest supply chain management companies, has opened its office in Myanmar’s capital, Yangon.

    For the last five years, CEVA has been operational in the country through a network partner, providing freight management services to a number of multinational and local customers.

    Effective June 2017, the company now has its own office, offering the full spectrum of air and ocean freight services with access to the CEVA network using One Freight System (OFS) – CEVA’s global system which manages all freight movements worldwide.

    Myanmar presents considerable potential for growth with strong demand for both import and export services. Imports comprise mainly industrial materials for infrastructure, consumer goods and machinery, whilst exports of commodities, agricultural products and goods for the retail sector drive the outbound trade. With its expertise in the industrial and consumer and retail sectors among others, CEVA is well positioned to offer professional and competitive services.

    “Myanmar is a country with real opportunities for growth. It has a population of some 55 million people who are looking to companies like CEVA to provide supply chain services to support their developing business and meet their requirements. In the past, the country infrastructure has always been a limiting and inhibiting factor but with our global network and more importantly, our experience in emerging markets, especially in the region, we are confident that with our own office and robust IT offerings we can deliver options and solutions to the market and at the same time grow our commercial footprint”, says Bruno Plantaz, CEVA’s managing director Mekong cluster.

  • DHL beefs up cold chain to US and Asia

    DHL beefs up cold chain to US and Asia

    DHL Global Forwarding, the air and ocean freight specialist of Deutsche Post group, says it is going to accelerate the supply chain for the north Norwegian seafood industry.

    DHL has started shipping live crabs and seafood from the Lakselv Airport Banak in north Norway to Asia and Northern America.

    On dedicated weekly flights, DHL transports the fresh seafood to the DHL terminal in Oslo, from where the freight is sent to South Korea and other destinations such as Japan or the United States.

    From the origin, which is only 100km from the North Cape, to its destination in Asia the whole logistics is exactly timed, ensuring the shipments are delivered in perfect condition.

    Tim Robertson, head of Air Freight, DHL Global Forwarding, Americas, said: ‘Thanks to our team of experts, who understand temperature control requirements, regulations, food safety and quality control guidelines, this seafood and fish is able to get to market and to consumers in the most expedient way possible.’

    DHL said transporting the fresh seafood by plane allows it to cut the lead time nearly by 50 per cent. This ensures that living crabs and other fresh seafood arrive at their destination in the best condition.

    Bjørn-Erik Stabell, marketing manager for salmon and trout at the Norwegian Seafood Council, said: ‘Time is of the essence when it comes to delivering fresh seafood of the very best quality. Norway is a long country, and with a large proportion of seafood being produced in the north, this air freight route is an important contribution to efficiently reaching seafood consumers across the world.’

    DHL is aiming to increase the frequency of deliveries from Oslo to Asia to three flights per week. From Oslo, almost 90 per cent of the fish is flown directly to Seoul in South Korea, while approximately 10 per cent is further directed to destinations in the US, Japan and China.

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  • FedEx posts strong fiscal Q4 and FY 2017 earnings results

    FedEx posts strong fiscal Q4 and FY 2017 earnings results

    FedEx Corp. reported earnings of US$3.75 per diluted share (US$4.25 per diluted share on an adjusted basis) for the fourth quarter ended May 31, compared to a loss of US$0.26 per diluted share (earnings of US$3.30 per diluted share on an adjusted basis) a year ago.

    This year’s and last year’s quarterly consolidated earnings have been adjusted for:

    Impact per diluted share Fourth Quarter
    Fiscal 2017 Fiscal 2016
    Mark-to-market (“MTM”) pension accounting adjustments ($0.02) $3.47
    TNT Express integration expenses  0.32 —
    FedEx Trade Networks legal matters  0.09 —
    TNT Express intangible asset amortization  0.06 —
    FedEx Ground legal matters  0.05  0.02
    TNT Express expenses and operating results from the date of acquisition  —  0.34
    Tax impact – legal entity restructuring for TNT integration  —  (0.28)

    “Strong fourth quarter results completed a record fiscal 2017,” said Frederick W. Smith, FedEx Corp. chairman and chief executive officer. “We enter fiscal 2018 confident FedEx Corp. will continue to deliver outstanding value and opportunities for shareowners, customers, and team members for years to come.”

    Fourth quarter results
    FedEx Corp. reported the following consolidated results for the fourth quarter (adjusted measures exclude the items listed above for the applicable fiscal year):

    Fiscal 2017 Fiscal 2016
    As Reported
    (GAAP)    		 Adjusted
    (non-GAAP)    		 As Reported
    (GAAP)    		 Adjusted
    (non-GAAP)
    Revenue $15.7 billion $15.7 billion $13.0 billion $13.0 billion
    Operating income (loss) $1.58 billion $1.76 billion ($68 million) $1.51 billion
    Operating margin 10.1% 11.2% (0.5%) 11.7%
    Net income (loss) $1.02 billion $1.15 billion ($70 million) $897 million
    Diluted EPS $3.75 $4.25 ($0.26) $3.30

    Operating results benefited from higher base rates, increased package volume and the inclusion of TNT Express results.  Net income and earnings per share reflect tax benefits of US$104 million, or US$0.37 per diluted share, related to the implementation of new foreign currency tax regulations, the adoption of a new accounting standard for share-based payments, and certain transactions related to the TNT Express integration.

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  • DHL signs up for four more A330-300P2Fs

    DHL signs up for four more A330-300P2Fs

    DHL Express has signed up for four more A330-300 passenger-to-freighter conversions from ST Aerospace subsidiary Elbe Flugzeugwerke.

    The express operator, which in July last year became the launch customer for the conversion programmewith an order for two of the aircraft, said the deal also includes options for a further 10 conversions.

    The contract was signed at the 52nd International Paris Air Show this afternoon, and witnessed by Guests-of-Honour Singapore’s Second Minister for Defense Mr Ong Ye Kung and Chief of the Saxon State Chancellery and State Minister for Federal and European Affairs Dr Fritz Jaeckel.

    The conversion will be carried out by EFW, which is jointly owned by ST Aerospace and Airbus. The aircraft has a payload of up to 61 tons.

    In order to take on the expanded conversion programme for DHL Express, EFW is gradually ramping up its capacity at its facility in Dresden, with a new single-bay wide-body hangar being completed recently.

    Geoff Kehr, senior vice president, global air fleet management, DHL Express, said: “DHL is delighted to be expanding this pioneering conversion programme with ST Aero, EFW and Airbus and securing the option to add more units to our fleet in future.

    “We believe the A330-300P2F, with its favourable payload and range metrics, will address an important demand segment within the air cargo market that is not currently served by any other aircraft type.

    “It will further strengthen the global air network of DHL Express and help us to achieve even greater efficiencies in our aviation operations.”

    The first aircraft under the DHL Express A330-300P2F program is currently undergoing conversion at EFW’s Dresden-based facilities, while work is set to begin on a second aircraft at an ST Aerospace engineering facility in Singapore.

    The first two aircraft are scheduled to be redelivered by the end of 2017.

    The A330P2F conversion programme, launched in 2012, is a collaboration between ST Aerospace, Airbus and EFW.

    ST Aerospace, as the programme and technical lead for the engineering development phase, is responsible for applying for the supplemental type certificates for the freighter conversions from the European Aviation Safety Agency and the US Federal Aviation Administration.

    Aircraft original equipment manufacturer (OEM), Airbus, contributes to the programme with OEM data and certification support, while EFW leads the industrialisation phase and marketing for the freighter conversion programme.

    The A330P2F programme includes two versions – the A330-200P2F and the larger A330-300P2F. DHL Express is EFW’s first customer for the A330-300P2F conversion programme, while a launch contract with EgyptAir Cargo was secured in December 2014 for the A330-200P2F conversion programme.

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  • Arvato Unveils Enhanced Automation at New China Distribution Centre

    Arvato Unveils Enhanced Automation at New China Distribution Centre

    International leading service provider for supply chain management, Arvato SCM Solutions, has begun operations at a new China distribution center. The new multi-client facility in Shanghai is equipped with conveyors spanning across five floors, a pick-by-light system and various customized processing modules that feature hands-free scanners.

    “Enhanced automation, increased flexibility in processing lines with customized client specific setups are key characteristics of the new warehouse”, said Raoul Kuetemeier, Head of Asia at Arvato SCM Solutions.

    Arvato had consolidated three of its existing Shanghai sites into the new facility. “We commit to highly-competitive efficiency and agility in our domestic distribution solutions. The new warehouse and technologies installed will support us in achieving these goals”, said Kuetemeier.

    Backed by Arvato’s IT backbone, processes such as picking and dispatch will be supported by semi-automatic technologies such as the newly upgraded pick-by-light system. This will allow Arvato to channel resources on more complex operations such as kitting, returns management and further value-added services. With the automation in place, capacity and flexibility that are critical to manage extreme peak volumes in China have also been enhanced.

    Solutions offered at the site include retail fulfillment, e-commerce and spare parts logistics. Located in the Qingpu district of Shanghai, the new warehouse is within five minutes to the nearest expressway and 15 minutes to the closest airport. The facility will service clients primarily from the high-tech and entertainment, and consumer products industries.

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  • Amazon continues to open new fulfilment centres

    Amazon continues to open new fulfilment centres

    Amazon.com announced plans to open its second Colorado fulfilment centre in Thornton, which will be the first Amazon Robotics facility in the Centennial State. Amazon will create more than 1,500 new full-time associate roles at this facility.

    “We are excited to continue growing in Colorado with the new Robotics fulfilment center in Thornton,” said Akash Chauhan, Amazon’s vice president of North American Operations. “This facility will utilise robotics, vision systems, and more than 20 years’ worth of software and mechanical innovations. We are grateful for the support we have received from state and local leaders who have helped make this project possible.”

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  • UPS rolls out new peak shipping surcharge

    UPS rolls out new peak shipping surcharge

    UPS announced a new peak charge applicable during selected weeks in November and December 2017 for US residential, large packages and packages over maximum limits. The new charge is designed to enable UPS to continue to provide best-in-class value to customers while offsetting some of the additional expenses incurred during significant volume surges.

    “We’re focused on helping our customers achieve success during some of their most important selling seasons,” said Alan Gershenhorn, UPS chief commercial officer. “To meet their requirements, UPS flexes its delivery network to process near double our already massive regular daily volume, and that creates exceptional demands.”

    To meet peak volume demand, among many other investments, UPS acquires on a temporary basis and often at shorter-term premium rates, additional air and truck cargo capacity, temporary facilities, and additional sorting and delivery personnel.

    Further, shipments which are larger, heavier, or have unconventional shapes or sizes create even greater operational complexity during high-demand periods.

    “Our goal is to help every customer obtain the delivery capacity they need, combined with predictable and timely service they count on from UPS, even when there is limited capacity in the UPS network,” Gershenhorn continued.

    The company’s new per-piece peak charge* for the US 48 contiguous states and intrastate Alaska and Hawaii** for applicable package types and periods is summarized in this chart***:

    Nov 19 to
    Nov 25    		 Nov 26 to
    Dec 2    		 Dec 3 to   Dec 9 Dec 10 to
    Dec 16    		 Dec 17 to
    Dec 23
    UPS Next Day Air Residential

    n/a

    n/a

    n/a

    n/a

    $0.81
    UPS 2nd Day Air Residential

    n/a

    n/a

    n/a

    n/a

    $0.97
    UPS 3 Day Select Residential

    n/a

    n/a

    n/a

    n/a

    $0.97
    Ground Residential

    $0.27

    $0.27

    n/a

    n/a

    $0.27

    n/a = no additional charge during this period
    * Peak Surcharge to be published Sept 1, 2017 in a revised version of the UPS U.S. Rate & Service Guide
    ** For packages to and from Alaska and Hawaii, the surcharge is posted on ups.com/rates
    ***Chart does not show all potentially applicable peak surcharges. 

    “With the new peak charge, per-package costs for many shipments will only marginally increase during this very busy time of the year.” Gershenhorn continued.

    For example, a five-pound UPS Next Day Air package shipped from Atlanta, GA to a residential address in Philadelphia, PA will increase about one percent, compared to non-peak shipping times. A similar package shipped to a commercial address would experience no additional cost.

    From November 19 through December 23, UPS will also apply peak surcharges to Large Packages and packages that exceed maximum size limits. These charges are in addition to normal surcharges applicable to such packages. When shipping packages that exceed UPS’s published maximum size limits, customers are encouraged to consider using UPS Freight.

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