UPS 2012 Annual Report Download - page 17

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5
In the U.S., Worldport is supported by our regional air hubs in Hartford, Connecticut; Ontario, California; Philadelphia,
Pennsylvania; and Rockford, Illinois. This network design allows for cost-effective package processing in our most technology-
enabled facilities while enabling us to use fewer, larger and more fuel-efficient aircraft. Our U.S. ground fleet serves all
business and residential zip codes in the contiguous U.S.
U.S. Domestic Package Reporting Segment
UPS is a leader in time-definite, money-back guaranteed, small package delivery services. We offer a full spectrum of
U.S. domestic guaranteed ground and air package transportation services. Depending on the delivery speed needed, customers
can select from a range of guaranteed time and day-definite delivery options.
• Customers can select from same day, next day, two day and three day delivery alternatives. Many of these services
offer options that enable customers to specify a time of day cut-off for their delivery (e.g. by 8:30, 10:30, noon, end of
day, etc.).
• Customers can also leverage our extensive ground network to ship using our day-definite guaranteed ground service
that serves every U.S. business and residential address. UPS delivers more ground packages than any other carrier,
with over 11 million ground packages delivered on time every day in the U.S., most within one to three business days.
• UPS also offers UPS SurePost, an economy residential ground service for customers with non-urgent, light weight
residential shipments. UPS SurePost is a contractual residential ground service that combines the consistency and
reliability of the UPS Ground network with final delivery provided by the U.S. Postal Service.
International Package Reporting Segment
Our International Package reporting segment includes the small package operations in Europe, Asia, Canada and Latin
America. UPS offers a wide selection of guaranteed, day and time-definite international shipping services.
• We offer three guaranteed time-definite express options (Express Plus, Express and Express Saver) to more locations
than any other carrier.
• In 2013, we introduced UPS Worldwide Express Freight for palletized shipments over 150 pounds from 37 points of
origin to 41 points of destination. This service meets the needs of international customers who have palletized freight
shipments that require the same speed and reliability as our international express package service. UPS Worldwide
Express Freight leverages our unique combination of package and freight networks to provide industry leading transit
times with a money-back guarantee.
• For international shipments that do not require express services, UPS Worldwide Expedited offers a reliable, deferred,
guaranteed day-definite service option.
• For cross-border ground package delivery, we offer UPS Transborder Standard delivery services within Europe,
between the U.S. and Canada and between the U.S. and Mexico.
Europe, our largest region outside of the U.S., accounts for roughly half of international revenue and is one of our growth
engines. Factors contributing to this are the highly fragmented nature of the market and the fact that exports make up a
significant part of Europe’s GDP. Given our well-known, trusted brand and distinctive integrated network, we believe there is
continued strong potential for growth in small package exports in Germany, the U.K., France, Italy, Spain and the Netherlands.
Due to our strong growth, we are expanding our main European air hub in Cologne by 70% to a capacity of 190,000 packages
per hour. Expansion will come in stages; the first stage was completed in the fourth quarter of 2011, with the final stage
targeted for 2013.
Asia is another growth engine due to attractive growth rates in intra-Asia trade and the dynamic Chinese economy. We
are bringing faster time-in-transit to customers focused on intra-Asia trade, reducing transit days from Asia to Europe, and
continuing to build our China presence. Our recent China investments include:
• Material outlays to add capabilities, facilities and quality employees. We are building awareness and relevance while
demonstrating superior UPS performance.
• Opened an air hub in Shenzhen in mid-2010.
• Added intra-Asia and around-the-world flight frequencies allowing customers to reach more of Europe the next day,
guaranteed, than any other express carrier.
We serve more than 40 Asia-Pacific countries and territories through more than two dozen alliances with local delivery
companies that supplement company-owned operations. In Vietnam, our volume has doubled since entering into an alliance
with a local partner in 2010.