UPS 2013 Annual Report Download - page 18

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6
In the U.S., Worldport is supported by our regional air hubs in Columbia, South Carolina; Dallas, Texas; Ontario,
California; Philadelphia, Pennsylvania; and Rockford, Illinois. This network design allows for cost-effective package
processing in our most technology-enabled facilities while enabling us to use fewer, larger and more fuel-efficient aircraft. Our
U.S. ground fleet serves all business and residential zip codes in the contiguous U.S.
U.S. Domestic Package Reporting Segment
UPS is a leader in time-definite, money-back guaranteed, small package delivery services. We offer a full spectrum of
U.S. domestic guaranteed ground and air package transportation services. Depending on the delivery speed needed, customers
can select from a range of guaranteed time and day-definite delivery options.
• Customers can select from same day, next day, two day and three day delivery alternatives. Many of these services
offer options that enable customers to specify a time-of-day guarantee for their delivery (e.g. by 8:30, 10:30, noon, end
of day, etc.).
• Customers can also leverage our extensive ground network to ship using our day-definite guaranteed ground service
that serves every U.S. business and residential address. UPS delivers more ground packages than any other carrier,
with nearly 12 million ground packages delivered on time every day in the U.S., most within one to three business
days.
• UPS also offers UPS SurePost, an economy residential ground service for customers with non-urgent, light weight
residential shipments. UPS SurePost is a contractual residential ground service that combines the consistency and
reliability of the UPS Ground network with final delivery provided by the U.S. Postal Service.
International Package Reporting Segment
Our International Package reporting segment includes the small package operations in Europe, Asia, Canada and Latin
America, the Indian sub-continent, Middle East and Africa. UPS offers a wide selection of guaranteed day and time-definite
international shipping services.
• We offer three guaranteed time-definite express options (Express Plus, Express and Express Saver) to more locations
than any other carrier.
• In 2013, we introduced UPS Worldwide Express Freight for palletized shipments over 150 pounds from 38 points of
origin to 42 points of destination. This service meets the needs of international customers that have palletized freight
shipments and require the same speed and reliability as our international express package service. UPS Worldwide
Express Freight leverages our unique combination of package and freight networks to provide industry leading transit
times with a money-back guarantee.
• For international shipments that do not require express services, UPS Worldwide Expedited offers a reliable, deferred,
guaranteed day-definite service option. In 2013, we tripled the coverage area for UPS Worldwide Expedited,
providing delivery in two-to-five business days to more than 220 countries and territories. This expansion will help
UPS customers magnify their global reach and balance delivery speed with cost, no matter where they ship.
• For cross-border ground package delivery, we offer UPS Transborder Standard delivery services within Europe,
between the U.S. and Canada and between the U.S. and Mexico.
Europe, our largest region outside of the U.S., accounts for roughly half of international revenue and is one of the
primary drivers of our growth. Several factors provide us significant additional opportunities, including the highly fragmented
nature of the market and the fact that exports make up a significant part of Europe’s GDP. We believe there is a continued
strong potential for growth in small package exports in Germany, the U.K., France, Italy, Spain and the Netherlands. To
accommodate this strong growth, we will complete the expansion of our main European air hub in Cologne, Germany in the
first quarter of 2014; it will have the capacity to process 190,000 packages per hour.
Asia remains attractive due to growth rates in intra-Asia trade and the rapidly-expanding Chinese economy. We are
bringing faster time-in-transit to customers focused on intra-Asia trade, and reducing transit days from Asia to Europe.
Through added flight frequencies, we provide our customers the ability to ship next day to more places in Europe, guaranteed,
than any other express carrier. We are continuing to build our presence in China through the expansion of our service
capabilities, investing in our transportation network and strengthening brand awareness. Additionally, we serve more than 40
Asia-Pacific countries and territories through more than two dozen alliances with local delivery companies that supplement
company-owned operations.