UPS Really Does Love Logistics

Today we saw the fruits of what UPS loves about logistics. That's because they reported record 4th quarter earnings which surged a whopping 44% over the 4th quarter of 2009. In fact they are projecting that their Earnings Per Share for 2011 will jump 16 to 22%. In addition they reported their global revenue increased by 8.4%, generating $1.8 Billion in adjusted operating profit which represents a 40% increase over last year.

In 2010 the company delivered a staggering 3.9 billion packages which averages out to be 15.6 million packages per day. Their revenue increased 9.4% to $49.5 Billion and their adjusted operating profit increased to $5.8 Billion. UPS really is a cash cow, and remember these numbers do not even factor in the General Rate Increase that went into effect on January 3rd, 2011.

Which by the way leads us to wonder.....did they really need to publish such a large general rate increase for 2011? It has always been a pet peeve of ours that the transportation industry implements a general rate increase each and every year without ever really justifying such increases. Do you think UPS knew where their profits would fall when they announced the increases in late 2010? You bet they did.

So we have a question for all those customers who utilize the services of UPS or any freight carrier for that matter, have you increased your rates to your customers each year for the past 30 years by an average of 6-7% a year? We didn't think so. Which leads us to another question, don't you think its time to make sure that your company is not overly contributing to these huge carrier profits? There is a simple solution. Have your rates and contracts analyzed and benchmarked by a Third Party Parcel Consultant who can tell you precisely if you are overpaying and by how much. All it takes to get started is a short telephone conversation for a No COST, NO OBLIGATION benchmark analysis.

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