UPS Enjoys Profitable Q2 Ahead of Peak Surcharge Rollout

by | Aug 1, 2017

1 min read


On the heels of FedEx’s record fiscal year earnings announcement, the other half of the domestic parcel shipping duopoly released its stellar second quarter 2017 results as UPS reported year-over-year revenue and operating profit gains.

For the United States market, revenues were up 8% over Q2 2016 thanks to ecommerce demand in the Air and Ground service types.

Revenue per package increased 3% over last year, attributable to pricing increases, or “yield management initiatives,” as CFO Richard Peetz described it during the July 23 earnings conference call.

That good news follows UPS’ June announcement of Peak Surcharges coming in November and December, and as it prepares to release its revised 2017 Rate and Service Guide on Sept. 1. Both are likely to have appreciable impacts on the rest of its fiscal year.

To summarize: Like FedEx shared earlier this summer, UPS is shipping more packages and enjoying the fruits of this year’s rate increases.

Do you know how coming rate increases and new accessorials – such as the Peak Surcharge – will affect your total cost of goods?

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