UNITED Parcel Service (UPS) had flown less cargo to and from its hub at the Clark International Airport in the first five months of the year compared with the same period last year, as the global freight forwarder faced a shift by shippers to slower but cheaper transport modes.
Statistics PortCalls obtained from Clark International Airport Corp. (CIAC) showed that from January to May this year, UPS carried a total of 8,624.70 tons of international inbound cargo, 10.68% lower than the 9,655.85 tons it flew into the airport in the same period last year.
The company’s international outbound cargo from Clark decreased 18.93% to 7,709.02 tons compared with 9,508.94 tons a year ago, CIAC data showed.
In Atlanta, Georgia, the US base of UPS, the company admitted its overall performance had been affected by weak markets and customers trading down.
“Market conditions and shipper preferences clearly impacted our freight forwarding and international business,” said Scott Davis, chairman and CEO, at the second-quarter results announcement on July 23.
“UPS is adapting to these conditions to ensure we deliver a solid second half,” Davis said.
Even then, UPS’ total revenues for the second quarter increased 1.2% to US$13.51 billion from $13.35 billion in the same period last year. International package revenue rose slightly 1.63% to $3.06 billion from $3.01 billion.
Daily export shipments gained 5.0%, with Europe and Asia leading the way, UPS said.
The freight forwarder recorded lower cargo volume at Clark, despite adding a few more flights to that airport during the period. UPS flew 248 inbound and the same number of outbound flights, compared with 247 inbound and 246 outbound.
UPS has international flights to Taipei and Shenzhen.
Domestic flights for the first five months, on the other hand, carried a combined 671.42 tons of inbound cargo and 342.84 tons outbound in Manila and Cebu. UPS made 111 inbound flights and 125 outbound flights.
In 2012, the company carried a total of 21,821.13 tons of international inbound cargo and 19,800.27 tons outbound.
Another Clark airport user, Federal Express, which has technical stops from Clark to Taipei and
Guangzhou, operated fewer flights in the first half of the year with 296 inbound and the same number of outbound flights in 2013, compared with 301 and 302 in 2012, respectively.