UPS® Makes an Aggressive Move in Worldwide Express
UPS® is making a bold move to allow shippers guaranteed rush delivery to more countries than ever before. To date, UPS Worldwide Express Service provides service to a total of 117 countries and territories. In 2016 alone, the service was introduced to 52 countries and territories. Geared towards companies with time-sensitive international shipments, the Worldwide Express Service ensures packages will be delivered by the next business day at 10:30 AM, noon, or 2 PM (time varies based on destination.)
Key additions include:
- Africa/Middle East: Saudi Arabia, Morocco, Tunisia
- Asia: Cambodia, Vietnam, Myanmar
- Europe: Cyprus, Georgia, Albania
- North America: Dominican Republic
With the latest additions, the service is now available to 117 countries and territories which make up about 95% of the global GDP. This is a particularly aggressive move for UPS because previously, the service was available to countries and territories that totaled 90% of the global GDP. When you think about it, a jump from 90% to 95% requires more countries than a jump from 25% to 30% would. It’s like the 80/20 rule; if 80% of the GDP was in 20% of the countries, then you need to add a lot more countries to close the rest of the gap.
So what kind of companies will benefit most from this service expansion?
According to Logistics Management1, the answer is “shippers in the retail, high-tech, industrial manufacturing, and healthcare sectors, in addition to consumers using it for urgent global shipments…It [can also be] leveraged by businesses whose products have a short shelf life and companies producing goods for special events that require last-minute order changes.”
As the Dominican Republic has recently become a stronger market (thanks in part to the wider free trade agreement the US maintains with them and five other Central American nations) this service may represent a new opportunity for US exporters/shippers. Meanwhile, the European expansion shows UPS’s dedication expanding the region’s marketplace.
This is an aggressive move and big shake-up in terms of UPS’s level of investment and reflects a bigger corporate investment in UPS’s European operations. UPS plans to expand service destinations by $2 billion in the next three years. US shippers should keep an eye on the access to expanded services in new regions to assess whether or not this represents an opportunity for their business.
To learn more about UPS’s Worldwide Express expansion, check out this roundup of relevant articles:
- “UPS expands Worldwide Express service offerings to three more countries” – Logistics Management
- “UPS Worldwide Express Package Service Helps Businesses Deliver Urgent Shipments” – Yahoo! Finance
- “UPS Expanding Worldwide Delivery” – RTT News