UPS 2008 Annual Report Download - page 4

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3
In contrast, international export volume gains increased by
a market-leading 6.8 percent from 2007 levels, despite the
fact that growth was constrained by declines in U.S. imports
and slowing global economies in the second half of 2008.
The unprecedented run-up in fuel prices precipitated very
significant increases in our fuel surcharge rates, resulting in a
product mix shift from more expensive premium air services
to ground. This trend was apparent throughout our global
package operation.
UPS took aggressive steps to address market conditions. We

flexible network to match reduced volume levels, and con-
trolled cost by closing facilities, reducing staff, and curtailing
spending. We will remain vigilant this year in our efforts to
reduce or eliminate additional costs in every area of the
enterprise. This includes freezing management salaries,
reducing other forms of compensation and suspending the

changes to our long-standing defined benefit pension plans.
These actions will partially offset the impacts to the company
from continued economic weakness.
What we did not do was reduce investment for the future.
In the United States we continued the multi-year expansion
of our largest international air facility, called Worldport, in



service contractor in Romania. In Asia, we opened an air hub
in Shanghai and broke ground on a new hub in Shenzhen. We

began offering express pickup and delivery services within 16


25
75


U.S.
International
22
61
17


 
International Package
 
“We are resilient and adaptable ...
creating new solutions to help our
customers succeed.”