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The numerous industries that make up the world of freight have undergone super change over the previous a number of many years. Every week, FreightWaves explores the archives of American Shipper’s practically 70-year-old assortment of transport and maritime publications to showcase fascinating freight tales of way back.
United Parcel Service Inc. stated its airline division, UPS Airways, has signed an settlement with Boeing Co. to take supply of 13 MD-11 widebody freighters over the following 4 years.
The deal additionally contains choices for 22 extra MD-11s, which if exercised might carry the worth of the settlement to greater than $2 billion, UPS stated.
The 13 agency orders will probably be delivered beginning subsequent yr. The choices can be delivered starting in 2005. Boeing’s Airplane Providers unit will convert the plane from passenger to freighter configuration. UPS will use the planes to increase its worldwide enterprise, significantly on long-haul flights from the USA to Europe and Asia.
The deal was introduced at an investor convention final week, the place UPS executives additionally laid out monetary expectations for the approaching quarter and subsequent yr.
UPS expects peak fourth-quarter enterprise to supply progress consistent with annual expectations. Barely weaker demand is anticipated this yr in comparison with final.
UPS plans to attain income progress of about 10% subsequent yr, with earnings-per-share progress within the mid-teens and a return on fairness of about 30%.
Worldwide export site visitors ought to proceed to develop within the double digits. Worldwide home progress will seemingly be within the higher single digits, UPS stated.
UPS Logistics will proceed to publish 30%-plus quarterly income progress charges and will hit a couple of 5% to six% revenue margin within the 2002-2003 time-frame. Service elements logistics will probably be a key phase. Logistics would be the most vital “progress driver” within the non-package phase, UPS stated.
UPS additionally stated it plans to increase the monetary providers enterprise, together with commerce logistics financing, subsequent yr.
“Once you have a look at the UPS of 2000 — a logistics firm, an digital commerce firm, a consulting firm and a monetary providers firm — it’s apparent we’re not simply delivering packages,” stated Jim Kelly, chairman and chief government officer.
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