UPS today unveiled a major service and network expansion in Asia with faster transit times, deeper market coverage and enhanced services as it aims to benefit from growth in regional trade.
The company, which claims to offer the industry’s fastest transit time of 24 hours for deliveries from Hong Kong to Europe, said it has sped up the transit times for a majority of intra-Asia lanes and deepened its geographical reach.
UPS has accelerated intra-Asia transit times by up to one full day across 29 trade lanes connecting 41 markets, allowing most intra-Asia and Asia-U.S. to reach their destinations within 24 hours, and Asia-EU shipments to arrive within 48 hours. Details of new or adjusted flights to enable these improvements were not disclosed.
In addition, UPS has deepened the geographical reach of its network in four markets covering 27 cities, with plans to cover almost 40 cities by end of 2018. These four markets were not named. Package pick-up cut-off times have been extended by 90 minutes to as late as 8:00 PM in major export markets, giving businesses greater flexibility to finalise orders.
UPS is also expanding its network reach to deepen its presence in major cities with the deployment of additional vehicles to support volume growth, and also give customers direct access to new consumers. Moreover, the company has added market expertise in industry verticals, customs brokerage and trade management services.
Nando Cesarone, President, UPS Asia Pacific Region, said: “There are substantial opportunities linked to regional economic growth, but our experience shows that the rising tide of regional growth will not float all boats. Success is incumbent upon businesses actively pursuing opportunities by addressing the demands of the market and forming the right partnerships.
“What the market demands today goes beyond product or pricing —customers also need partners that can maximise their efficiency. The ability to deliver finished products, technical components, or spare parts faster, further and more flexibly is vital. This new suite of enhancements – and those that we will continue to make – addresses these needs,” he declared.
Wilfredo Ramos, Vice President of Strategy, UPS Asia Pacific Region, added: “As a result of increased transit efficiencies, for example, manufacturers in Taiwan, one of the major high-tech capitals, will be able to access parts from suppliers sooner, allowing them to better meet the needs of their own clients. Meanwhile, due to expanded geographical reach in the Philippines with the addition of 185 new postal codes, companies will be able to send shipments directly to more locations across the nation than ever before; and strengthened capabilities across key air lanes will also mean that goods travelling between Japan and a number of destinations in Asia will get there much faster.”
Currently, intra-Asia trade accounts for more than half of Asia’s trade, with its value exceeding the combined trade between Asia and Europe, and Asia and North America. The IMF’s most recent Regional Economic Outlook shows that Asia Pacific will continue to lead global growth, with the regional economy set to expand by 5.6% this year and 5.5% in 2016, driven heavily by strong domestic demand, UPS pointed out.
The latest network enhancements follow on from a series of investments undertaken by UPS to strengthen its offering in Asia Pacific. In January this year, the company launched Trade Management Services to facilitate customers’ expansion opportunities, and in the same month expanded its UPS Worldwide Express Freight services to an additional three markets in the region. More recently, UPS commenced offering inbound and outbound express delivery and contract logistics services in Myanmar.
Overall, UPS serves more than 40 countries and territories in Asia Pacific with some 15,000 employees, a ground delivery fleet of 1,940 vehicles and a network of 535 facilities, including hubs, gateways, regional and local warehouses and sorting centres.
The air network comprises 30 freighters operating some 200 intra-Asia flights and 142 international flight segments a week, serving the three hubs at Shanghai, Shenzhen and Hong Kong, 17 other airports in the region and international airports in the USA, Europe and the Middle East.
