UPS 2005 Annual Report Download - page 21

China’s fastest growing manufacturing regions. In 2006, we will add another three daily flights to China. Those
flights are supporting international express volume into and out of China, which has seen dramatic growth in
recent quarters.
We believe that there is long-term potential for us to expand our service offerings in Latin America. To this
end, we have realigned our delivery capabilities between key cities in the Mercosur and other trade blocs. Our
Americas International Gateway in Miami, Florida is the focal point for trade between Latin America and the
U.S. This gateway complements our operations in Florida and Latin America, and represents our commitment to
the Americas market.
Mexico and Canada are also important to our international business. We developed the UPS Trade DirectSM
Cross Border service to manage package movements between the U.S. and these countries. This service
combines our small package, freight and brokerage capabilities to create an integrated, streamlined and
economical door-to-door solution for customers with complex cross-border distribution needs.
The Trade Direct portfolio of ocean and air services integrates our small package and supply chain solutions
capabilities to provide additional value to our international customers. In essence, the Trade Direct service
consolidates individually labeled packages or pallets into one movement across borders. When the goods arrive
in the destination country, packages are deconsolidated and entered into the UPS system for delivery, often
eliminating the receiving, sorting and handling necessary in distribution centers. This service significantly cuts
the supply chain cycle from point of origin to consignee. It also provides our customers with faster time to
market, reduced costs, increased visibility and better management of their global supply chain.
In 2004 we expanded UPS Trade Direct Ocean, a service that transforms ocean container movements into
pre-labeled small packages or LTL shipments. As of December 2005, this service was expanded to over 70
international origin ports and five U.S. entry ports. In addition, a faster Trade Direct Air option was also
introduced.
Supply Chain & Freight Services. UPS Supply Chain Solutions, which comprises our freight forwarding
and logistics businesses, meets customers’ supply chain needs by selecting the most appropriate solution from a
portfolio of over 60 services. Among these are:
•Transportation and Freight Forwarding: air, ocean, rail and ground freight for all size shipments
utilizing UPS and other carriers, and multimodal transportation network management.
•Logistics and Distribution: supply chain management, distribution center design, planning and
management, order fulfillment, inventory management, receiving and shipping, service parts logistics,
reverse logistics and cross docking.
•International Trade Management: freight forwarding, full-service customs brokerage and international
trade consulting.
•Consulting Services: strategic supply chain design and re-engineering.
Asset-based lending, global trade finance and export-import lending services are available through UPS
CapitalSM.
In 2005, we expanded our LTL transportation services with the acquisition of Overnite Corp., which offers a
full range of regional, inter-regional and long-haul LTL services in all 50 states, Canada, Puerto Rico, Guam, the
Virgin Islands and Mexico. Overnite, which is now known as UPS Freight, provides LTL services through a
network of owned and leased service centers and carrier partnerships. UPS Freight transports a variety of
products, including fabricated metal products, health care products, chemicals, textiles, machinery, furniture and
fixtures, electronics, paper products and general commodities, including consumer goods, packaged food stuffs,
industrial equipment and auto parts. UPS Freight also provides our customers with truckload and dedicated
truckload transportation solutions (truckload shipments weigh 10,000 pounds or more).
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