UNITED Parcel Service (UPS) is expecting strong business in its Asia-Pacific operation until year-end after posting substantial growth in the region during the third quarter of the year.
In a report specifically on its Asia-Pacific operations, UPS said it expects a strong last quarter particularly in the small package business. ÒThe company expects the small package business to be strong in the fourth quarter due to the solid performance of international deliveries and the US holiday shipping period. Modest improvement from the supply chain and freight segment over third quarter results is also anticipated,Ó Ken Torok, president of UPS Asia Pacific, said in the report.
ÒWith the growing intra-Asia trade, our aim is to become the partner of choice for Asian businesses looking to expand internationally,Ó he added.
UPS is also taking significant steps to improve profitability of its forwarding and logistics business in a bid to cut non-operating expenses by 20%.
Based on the report, UPS posted export volume growth in the Asia Pacific of nearly 15%.
The company also registered solid revenue and profit growth on the back of a 5% rise in global small package volume and 19.9% increase in international package volume.
Also during the third quarter, the company opened its first retail centers in China. The launch of the UPS Express centers in Shanghai’s central business district is the latest in a series of strategic initiatives to expand UPS’s operations and brand presence in China.
UPS also operates in 23 cities with over 200 points of access in China. The US-listed firm is expected to launch its Shanghai hub early next year but this is not seen to compete with, but complement, its Asia-Pacific hub in the Philippines.