UPS 2005 Annual Report Download - page 20

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Products and Services
Domestic Package Products and Services. For most of our history, we have been engaged primarily in the
delivery of packages traveling by ground transportation. We expanded this service gradually, and today our
standard ground service is available to every address in the 48 contiguous United States. With the addition of
Hawaii and Alaska, we were the first to reach every address in all 50 states. We handle packages that weigh up to
150 pounds and are up to 165 inches in combined length and girth. We offer same-day pick-up of air and ground
packages.
In addition to our standard ground delivery product, UPS Hundredweight Service®offers guaranteed, time-
definite service to customers sending multiple package shipments having a combined weight of 200 pounds or
more, or air shipments totaling 100 pounds or more, addressed to one recipient.
We provide domestic air delivery throughout the United States. UPS Next Day Air®offers guaranteed next
business day delivery by 10:30 a.m. to 75% of the United States population and delivery by noon to areas
covering an additional 15% of the population. We offer Saturday delivery for UPS Next Day Air shipments for
an additional fee.
Additional products and services, such as UPS CampusShip, Consignee Billing, Quantum View Manage,
Delivery Confirmation and UPS ReturnsSM, are available to customers who require customized package
distribution solutions.
International Package Products and Services. We deliver international shipments to more than 200
countries and territories worldwide, and we provide delivery within one to two business days to the world’s
major business centers. We offer a complete portfolio of import, export and domestic services. This portfolio
includes guaranteed early morning, morning and noon delivery to major cities around the world, as well as
scheduled day-definite air and ground services. We offer worldwide customs clearance service for any mode of
transportation.
We classify our service as export (packages that cross national borders) and domestic (packages that stay
within a single country’s boundaries). We have a portfolio of domestic services in 20 major countries throughout
the world.
Transborder services, or the movement of packages within the European Union, are proving to be the
growth engine in this region. In early 2006, to accommodate growth opportunities across the whole of Europe,
we completed the expansion of our automated package sorting hub at the Cologne/Bonn airport in Germany. The
expansion doubled the hub’s original sorting capacity to 110,000 packages per hour, largely through the
deployment of new automation technology.
We continue to invest in infrastructure and technology in Asia. In April 2002, we opened a new intra-Asia
hub at Clark Air Force Base in Pampanga, Philippines to enable future growth in the region. This hub allows us
to compete more effectively in the Asian express market and improve our Europe/Asia service. In 2005, we
announced expansion plans to triple the intra-Asia hub’s sorting capacity from 2,500 packages to 7,500 packages
per hour. We obtained landing slots on the new runway at Tokyo’s Narita Airport, which have enhanced access
and connections to the intra-Asia hub.
In 2003, we received from the U.S. Department of Transportation the authority to expand service to and
through Hong Kong, including permanent authority to fly from Hong Kong to other cities, specifically to our
Cologne hub in Europe. We continue our development efforts in the fast-growing China market. In 2004, the
U.S. Department of Transportation authorized us to significantly expand our air operations in that country with
the award of 12 new frequencies. The decision tripled UPS’s access to China. In April 2005, UPS became the
first U.S. airline to launch non-stop service between the U.S. and Guangzhou, which lies strategically in one of
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