Full Description

United Parcel Service, Inc. (UPS) is a package delivery company. The Company delivers packages each business day for 1.8 million shipping customers to 6.1 million consignees in over 200 countries and territories. During the year ended December 31, 2008, UPS delivered an average of 15.5 million pieces per day worldwide, or a total of 3.92 billion packages. Its primary business is the time-definite delivery of packages and documents worldwide. It has also extended its service portfolio to include global supply chain services and less-than-truckload transportation, primarily in the United States. UPS operates in three segments: U.S. Domestic Package operations, International Package operations, and Supply Chain & Freight operations. U.S. Domestic Package operations include the time-definite delivery of letters, documents, and packages throughout the United States. International Package operations include delivery to more than 200 countries and territories worldwide. Supply Chain & Freight includes its forwarding and logistics operations, UPS Freight, and other related business units. During 2008, UPS completed construction of a new hub in Tamworth, England, UPS’s largest ground hub outside the United States. During 2008, it acquired its partner’s interest in the small package joint venture operation in Romania. In June 2009, the Company acquired a unit of Intereuropa Globalni Logisticni Servis.

The Company’s global small package portfolio consists of a spectrum of export and domestic services. Export services are those provided for packages crossing a country’s borders, while domestic services are for packages that stay within the borders of a single country. It provides domestic services in 23 major countries outside the United States. This portfolio includes guaranteed delivery options to major cities around the world. It handles packages that weigh up to 150 pounds and are up to 165 inches in combined length and girth. It offers same-day pickup of air and ground packages. UPS also offers worldwide customs clearance service for any mode of transportation.

The Company provides its customers with easy access to UPS. There are almost 150,000 domestic and international access points to UPS. These include: 38,800 branded drop-boxes, 1,000 UPS Customer Centers, 6,000 independently owned and operated The UPS Store and Mail Boxes Etc. locations worldwide, 2,800 alliance partner locations, 13,200 Authorized Shipping Outlets and commercial counters, and 87,000 UPS drivers who can accept packages given to them.

UPS offers a portfolio of supply chain services, including international air, full container load (FCL) and less than container load (LCL) ocean, rail and ground freight for all size shipments utilizing UPS and other carriers, and multimodal transportation network management; supply chain management, distribution center design, planning and management, order fulfillment, inventory management, receiving and shipping, critical parts logistics, reverse logistics and cross docking; customs brokerage and international trade consulting; industry-specific solutions for healthcare, retail, high tech, automotive, industrial manufacturing and government customers, and also provides asset-based lending, global trade finance and export-import lending services. UPS Freight provides LTL services through a network of owned and leased service centers and carrier partnerships. UPS Freight also provides its customers with truckload and dedicated truckload transportation solutions.

U.S. Domestic Package

The United States business consists of air and ground delivery of small packages up to 150 pounds in weight and letters to and from all 50 states. It also provides guaranteed, time-definite delivery of certain heavy-weight packages.

International Package

The International Package segment provides air and ground delivery of small packages and letters to more than 200 countries and territories worldwide. Europe is its largest region outside the United States accounting for approximately half of its international revenue. In Europe it provides both express and domestic service. Through more than two dozen alliances with Asian delivery companies that supplement Company-owned operations, it serves more than 40 Asia Pacific countries and territories. Its Canadian operations include both domestic and import/export capabilities. It delivers to all addresses throughout Canada.

Supply Chain & Freight Segment

The Supply Chain & Freight segment consists of the Company’s forwarding and logistics capabilities, as well as its UPS freight business unit. It manage supply chains in over 175 countries and territories, with about 35 million square feet of distribution space worldwide. It focuses on supply chain optimization, freight forwarding, international trade services and management-based solutions for its customers. UPS provides a range of transportation solutions to customers worldwide, including air, ocean and ground freight, as well as customs brokerage, and trade and materials management. It provides service, information technology systems and distribution facilities adapted to the supply chains of specific industries, such as healthcare, technology, and consumer/retail. It calls this configurable solutions. It offers a portfolio of financial services that provides customers with short-term and long-term financing, secured lending, working capital, government guaranteed lending, letters of credit, global trade financing, credit cards and equipment leasing.