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Faster transit times, wider service footprint, and extended collection hours for export shipments across the company’s Smart Logistics Network
The series of service enhancements UPS (NYSE:UPS) revealed today impact almost 1.4 million postal codes in 41 countries and territories across the Asia Pacific region, enabling worldwide connectivity for over 22 million businesses.
“At the root of the investments in our Smart Logistics Network is a simple desire to make global commerce easier for Asian businesses—because when they grow, we grow too,” said Ross McCullough, President, UPS Asia Pacific Region. “More UPS customers in the region will now be able to have their shipments sent and received in less time; they’ll be able to find us easily in more cities and towns, and they’ll be able to send shipments later in the day than before—all of which will open new opportunities for businesses in the region to trade more efficiently with the rest of the world.”
In the first half of 2019, UPS completed the following as part of its strategy to bolster economic development in the region, which is projected to account for 63 percent of global GDP growth in 20191:
- Shenzhen Asia Pacific Air Hub upgrades increase the hub’s processing capacity by nearly 50 percent in preparation for volume gains in the coming three years.
- Transit times reduced across 2,300 trade lanes: Intercontinental transit times reduced by up to 4 days, while shipments with destinations in Asia see transit times improved by up to 2 days. Korean customers with shipments destined for Europe or Vietnam strengthen their competitiveness, with outbound shipments reaching a day earlier.
- Greater capacity for shipments between South Korea and Europe, with the deployment of a Boeing 747-400 that replaces an existing MD-11, and increases aircraft capacity by more than 20 percent.
- Improved the geographic reach of UPS Worldwide Express® services, offering international shipping with time-definite deliveries in Australia, Hong Kong, Japan, Singapore, and South Korea.
- Extended cut-off times by up to five hours for export shipments from China, Japan, Taiwan, and South Korea. A wider production window gives Korean businesses up till 5:00 PM to fulfill customer orders.
- Strengthened supply chain flexibility with Saturday pick-up services in the U.S. enabling import shipments destined for eight markets in Asia – including South Korea – to be delivered 1 day earlier than before.
“Despite the challenging economic and geopolitical climate, we still see lots of opportunities for growth. The recent service enhancements carried out across Korea including extended cut-off times and time-definite delivery cover key cities such as Gyeonggi Province, a major economic center of Korea. To better support growing inbound and outbound volumes, UPS continues to invest in our capabilities and deepen our presence across Korea. We’re committed to providing customers with greater speed and operational efficiencies as they expand their global footprint; all while maintaining timely deliveries,” said Harrison Park, managing director of UPS Korea.
UPS’s Shenzhen Hub serves as a transfer point for shipments moving within the region, and the enhancements improve both reliability and quality of service provided to UPS customers in Asia. About 550 employees maintain round-the-clock operations at the hub, which houses separate sorting and handling facilities for express and cargo shipments, on-site customs office and processing – including China Inspection and Quarantine (CIQ) clearance for import commodities – and a dedicated 150,000 square meter ramp with 13 aircraft parking positions. Self-operated aircraft ground-handling provides UPS, as a logistics integrator, with greater control over the 86 weekly UPS flights in and out from the hub.
UPS has operated in the Asia Pacific region since 1988, and has grown to service 41 countries and territories in the region over the past 30 years. As the trade environment becomes increasingly complex, customers are relying on UPS’s experience to help overcome cross-border challenges. Recently, the company established an in-house customs brokerage team to strengthen reliability and improve the export and import customs clearance process for Korean customers.
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