UPS Expands Global Express Services, Morgan Stanley Releases Amazon Predictions
UPS Expands Reach of International Express Services
In a recent press release, UPS announced the expansion of its Express Plus and Worldwide Express delivery to “over 3,200 new postal codes across 40 countries including five new countries.” Part of UPS’ international suite of services, Express Plus and Worldwide Express guarantee time- and day-definite delivery for urgent shipments.
This expansion will provide morning or midday service for companies looking to improve their time to market, increase the speed of inventory replenishment and meet the need for time-sensitive shipments to international growth areas across the globe.
“Cross-border trade continues to present growth opportunities for us and for customers of all sizes,” said Nando Cesarone, president of UPS International. “By expanding the reach of our industry-leading express services, we’re better connecting our customers to where we see continued growth potential. Our time-sensitive services are faster, they speed up time-to-market in high-growth economies and they offer another way for our customers to optimize their cross-border supply chains. Every advantage counts, especially for smaller businesses starting out. Their success is what drives commerce and creates jobs – globally.”
Morgan Stanley Estimates Amazon Will Surpass FedEx, UPS
According to new research released by Morgan Stanley last Thursday, Amazon Logistics parcel volume will account for 65% of total U.S. Amazon orders by 2022. The analysis was based on parcel data from 70,000 Amazon transactions.
Morgan Stanley figures Amazon is currently delivering 46% of the items ordered through its U.S. site, totaling 2.5 billion parcels in 2019. Additionally, Amazon Logistics’ share of its own orders doubled this year.
While Amazon’s 2019 parcel volume was lower than FedEx (3 billion) and UPS (4.7 billion), Morgan Stanley estimates that, due to the current speed of growth, Amazon Logistics will overtake the two carriers by 2022.
Many have predicted that Amazon will build out a shipping service for parcels originating from sites other than their own, and researchers seem to agree. “[Amazon’s] commitment to increase capacity by 2024/2025 re-affirms our view that a Third-Party Logistics offering is coming,” says Morgan Stanley.