(), commonly referred to as '''UPS''', is the world's largest
Package Delivery company, delivering more than 15 million packages
1 a day to 6.1 million customers in over 200 countries and territories around the world. It has recently expanded its operations to include
Logistics and other transportation-related areas. It is headquartered in
Sandy Springs, Georgia ,
USA .
UPS is well known for its
Brown trucks, internally known as package cars (hence the company nickname "The Big Brown Machine"). UPS also operates its own
Airline based in
Louisville, Kentucky .
UPS also owns
The UPS Store (formerly Mailboxes Etc.), a
Franchise chain which provides shipping, packaging, and copy services.
- and 18-year-old Claude Ryan founded the in Seattle, Washington with 100 borrowed dollars. The first main service was the delivery of Opium , which was fully legal in the country at that time.
- , Merged with a competitor, Evert McCabe, and formed Merchants Parcel Delivery. Consolidated delivery was also introduced, combining packages addressed to a certain neighborhood onto one delivery vehicle.
- 1918 : A new member was recruited, who helped manage their ever-growing fleet of delivery vehicles.
- . The name United Parcel Service was adopted.
- , and soon after began operations in other major cities in the east and midwest. First mechanical system for package sorting. Accountant George D. Smith joined the company. The name United Parcel Service was adopted all over the country. All UPS vehicles were then painted the familiar Pullman brown, chosen because it was considered neat, dignified, and professional.
- rights to deliver packages between all addresses, any customer, private and commercial.
, Venice , Italy ]]
- , Canada (YYZ) .
- 1952 : Blue Label Air
- of the USA.
- with a domestic operation in West Germany . Blue Label Air.
- 1982 : UPS Next-Day Air Service is offered in the US and Blue Label Air becomes UPS 2nd Day Air Service.
- November 10 , 1999 : UPS became a public company
- August 28th , 2007 : Marks the 100th anniversary of the United Parcel Service.
UPS has an ongoing history of its employees stealing firearms while in transit to licensed firearm dealers.
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3
In
1999 , in response to these thefts, UPS issued a policy that all
Handguns must be shipped overnight. "We're trying to protect ourselves from employees stealing," UPS spokesman Bob Godlewski said.
4
In
April 2003 , UPS unveiled a new logo, replacing the iconic package and shield originally designed in 1961 by
Paul Rand .
UPS entered the
Heavy Freight business with its purchase of
Menlo Worldwide Forwarding , a former subsidiary of
Menlo Worldwide , and rebranding it as UPS Supply Chain Solutions. The purchase was announced on
December 20 ,
2004 ; the price was US$150 million and the assumption of US$110 million in long-term debt. Menlo Worldwide was the successor of
Emery Worldwide . Emery was grounded on
August 13 ,
2001 after a
DC-8-71F crashed in
Northern California .
On
August 5 ,
2005 UPS announced that it had completed its acquisition of Overnite Transportation for US$1.25 billion.
5 This was approved by the
FTC and Overnite shareholders on
August 4 ,
2005 . On
April 28 ,
2006 , Overnite officially became UPS Freight.
On
October 3 ,
2005 , UPS in the
United Kingdom completed the purchase of LYNX Express Ltd, one of the UK's largest independent parcel carriers, for
£ 55.5 million (US$97.1 million) after having received approval for the transaction from the
European Commission . The first joint package car centre operation, in
Dartford , east
London , was opened during mid-2006. Dartford Centre carries the SLIC GB1330.
UPS's Political Action Committee has been the most generous corporate giver to
Federal candidates for every U.S. election since 1992, donating a total of $14 million through
December 31 ,
2005 according to
Federal Election Commission records.
On
April 20 ,
2006 , UPS reported earnings per diluted share of $0.89, up 14.1% over the previous year. Results were driven by a 9% increase in global small package volume or 1.24 million packages per day, outpacing worldwide market growth.
On
April 16 ,
2007 , the East Central region started The Total Service Plan.
Major domestic (
United States ) competitors include
United States Postal Service (USPS),
FedEx and
DHL . In addition to these domestic carriers, UPS competes with a variety of international operators, including
TNT N.V. ,
Deutsche Post ,
Royal Mail ,
Japan Post , and many other regional carriers, national postal services and air cargo handlers (see
Package Delivery and
Mail pages).
Historically, the bulk of UPS' competition came from inexpensive ground-based delivery services, such as
Parcel Post (USPS). But in 1998 FedEx expanded into the ground parcel delivery market by
Acquiring RPS (originally Roadway Package System) and rebranding it as
FedEx Ground in 2000. In 2003 DHL expanded its US operations by acquiring
Airborne Express , significantly increasing its presence in the United States, and adding more competition in the ground delivery market. In response to this, UPS partnered with the US Postal Service to offer
UPS Mail Innovations , a program that allows UPS to pick up mail and transfer it to a USPS center, or
destination delivery unit (DDU) , for final distribution. This process is also known as
zone skipping , long used by
Parcel Consolidators .
More recently, the continued growth of
Online Shopping , combined with increasing awareness of the role
Transportation (including package delivery) has on the
Environment , has contributed to the rise of emerging competition from niche carriers or rebranded incumbents. For instance, the
US Postal Service claims "greener delivery" of parcels on the assumption that USPS letter carriers deliver to each US address, six days a week anyway, and therefore offer the industry's lowest fuel consumption per delivery. Other carriers, like
ParcelPool.com , which specializes in residential package delivery to APO-FPO addresses, Hawaii, Alaska, Puerto Rico and other US Territories, arose in response to increased demand from catalog retailers and online e-tailers for low-cost residential delivery services closely matching service standards normally associated with more expensive expedited parcel delivery.
]]
In
April 2003 , UPS unveiled a new logo, the fourth the company has used, replacing the iconic package and shield originally designed in 1961 by
Paul Rand . The original logo first saw use in 1916 when the company was ''American Messenger Service''. In 1935, the logo was redesigned to reflect the company's new name ''United Parcel Service''. All four designs for the logo shared the shield theme, and UPS employees often refer to the brand mark as "the shield."
The brown color that UPS uses on its vehicles and uniforms is called ''UPS Brown,'' which was chosen because it is the same color that was used on
Pullman railroad sleeper cars and was seen as professional and elegant. The brown color hides dirt well and was inconspicuous. This color is often erroneously referred to as
Pantone color 0607298, but this is not a valid Pantone number.
6 UPS's department store customers did not want to call attention to the fact that UPS was delivering their furniture, rather than its own delivery people. The color ''UPS Brown'' is
Trademark , which prevents other delivery companies from using it as part of their brand.
UPS has also designed and trademarked a font ''UPS Sans'' for use in marketing and communication material. While similar to other sans-serif fonts in many respects, certain characters (including p, s, and u) have been stylized to match the company branding.
The UPS delivery driver uniform is one of the most recognized symbols of
Corporate America . It consists of a brown short- or long-sleeve button-up shirt or blouse with a pointed collar, front left pocket, and the company logo above the pocket. The shirt is worn with a pair of brown
Pants or shorts. When pants are worn, the shirttail is tucked in. All buttons, with the exception of the one on the collar, are fastened. The short-sleeve shirt can be worn with either the shorts or the pants. The long-sleeve shirt is worn exclusively with the pants. Drivers for UPS's SonicAir do not wear any uniforms and deliver in their own clothes.
UPS employs approximately 407,200 staff, with 348,400 in the U.S. and 58,800 internationally. In the United States, UPS requires drug testing for full time driver positions who are looking to drive feeders or any other driving position that requires a
Commercial Driver's License , but not for drivers of vehicles not requiring a
Commercial Driver's License .
Approximately 215,000 UPS employees are represented by the
International Brotherhood Of Teamsters . The company had only one nationwide
Strike in its history, which occurred in
1997 , lasting 16 days.
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UPS's Parcel Network is based on a
Hub And Spoke Model . UPS operates
Centers which feed parcels to hubs where parcels are sorted and forwarded to their destinations. Centers typically are the point of entry for parcels and send the parcels to one or more hubs. A hub is a location where many centers send packages to be sorted and sent back out to other centers or hubs. For example, a parcel being shipped from
Wilmington, North Carolina to
San Francisco, California is picked up by a driver and taken to the 23rd street center in Wilmington, where it is loaded on a trailer and driven to
Raleigh, North Carolina . At Raleigh, the package would join packages from all over North Carolina and be forwarded to the
Chicago Area Consolidated Hub in
Hodgkins, Illinois . After arriving there, it would be loaded onto a
Trailer and sent by rail (
Trailer On Flat Car in most cases) to the North Bay, California hub in
Richmond, California where it would then be forwarded to the delivery center, loaded onto the delivery vehicle, and transported to its final destination.
UPS's air network runs similarly to the ground network through a hub-and-spoke system, though air hubs are typically located at airports so packages and planes can quickly be unloaded, sorted, and loaded again. Centers feed packages to facilities at airports (called gateways), which in turn send them to an air hub to be sorted and put on another plane to a final destination gateway, and then from there to a center. For instance, a package traveling from
Seattle, WA to
Atlanta, GA , would be loaded onto an
Air Container at
Boeing Field International and flown to the UPS
Worldport in
Louisville, KY . From there it would be sorted to a container heading to Atlanta to
Hartsfield-Jackson International Airport , and taken by truck from the airport to the delivery center.
The normal procedure for residential customers in Canada to import goods from the U.S. by mail is relatively simple; they are required to pay 6%
GST on the item, plus a $5 or $8 CAN handling fee collected by the
Canada Border Services Agency (CBSA) on behalf of
Canada Post . This applies for mailed items greater than $20 CAN and gifts greater than $60 CAN in value
8. However, this does not apply to items shipped by couriers such as UPS.
When delivering packages in Canada, UPS
Brokers or clears the item through the CBSA and transfers a cost to the buyer.
9 These fees are not disclosed at the time of purchase by the seller as many sellers from the U.S. are themselves unaware of this.
UPS “Brokerage fee” class-action UPS Brokerage Fee Canadian Customs: What's The Deal. A Shipment to My Daughter Why we hate UPS UPS brokerage fees shock horror! UPS Problems -- WARNING
As a result , there have been two class-action lawsuits filed against UPS by Canadians. The first one filed in October, 2006 by Robert Macfarlane, a resident of
British Columbia 10 alleges that the UPS brokerage is "so harsh and adverse as to constitute an unconscionable practice."
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The second filed by Ryan Wright and Julia Zislin in Ontario claims "that UPS failed to obtain consumers’ consent to act as a customs broker; to disclose the existence and/or amount of the brokerage fee; and to provide consumers with the opportunity or disclose to them how to arrange for customs clearance by themselves."
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It is possible for the recipient to avoid these brokerage fees if the parcel is being shipped by a UPS "express" service , that is, another service than UPS Standard (Ground).
This distinction is not limited to Canada, or to UPS. As a rule, "mail" import procedures in all countries apply only to items imported , i.e., originated by the exporter's local postal authority (for Canadians, commonly
USPS ) for delivery by the importer's local postal authority (Canada Post); they do '''not''' apply to shipments made by courier services such as UPS,
FedEx , or
DHL . For example, this distinction is specifically noted by
U.S. Customs And Border Protection (CBP) in its website's page on Internet purchases imported into the
United States ; it also warns that imports by courier may come with "higher than...expected" brokerage fees that "sometimes exceed the cost of (the) purchase", and that prepaid shipping charges on imports by courier normally do '''not''' include duties or brokerage fees.
13 (The distinction may be sharper in the U.S. because CBP normally waives duties on mail imports of up to US$200 per day, but '''not''' on courier imports of any amount.
Use Tax , the U.S. equivalent of GST, is collected only by the states, not by CBP or shippers.) What makes this case unique is that UPS charges a substantial brokerage fee on ground shipments to Canada, when other Canadian small-package services apparently charge nothing (UPS "express" services) or a minimal fee (Canada Post).
In 2004 UPS announced that they would save fuel by making as many right hand turns as possible. Because drivers idle at intersections while waiting to make left hand turns, UPS developed software that finds the route to deliver the day's packages with the most right hand turns possible. Another advantage of making right hand turns is at stop signs because they spend less time waiting to cross several lanes of traffic when making a left. Since UPS operates a fleet of over 88,000 ground vehicles, the fuel savings are considerable. In 2005 UPS eliminated 464,000 miles from its routes and saved 51,000 gallons of fuel.
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UPS is also utilizing hybrid electric vehicles (HEV). As of May 22, 2007, the company has 50 deployed in Atlanta, Dallas, Houston, and Phoenix. The 50 HEVs are expected to cut fuel consumption by 44,000 gallons and 454 metric tons of CO2 emissions.
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The United Parcel Service fleet consists of the following aircraft as of December 2006:
United Parcel Service had ordered ten
Airbus A380 freighters and had options on ten more. However, this order was canceled on March 2, 2007, one day after Airbus announced that it would halt development and production of the A380 freighter to prioritize the production of the A380 passenger version. To replace those orders, UPS may order
Boeing 777 and
747-800 freighters instead.
16 UPS has also ordered eight
Boeing 747-400 freighters to increase capacity on its major "trunk" routes to Europe, Asia, and North America. The first was delivered on July 19, 2007 and the latter deliveries go on through 2008.
17 Furthermore, UPS Airlines placed a firm order for 27 additional
Boeing 767-300 Freighter s in February 2007 to be delivered 2009 to 2012.
18
Most UPS Airlines flights go through the UPS
Worldport at
Louisville International Airport , but also use hubs at
Chicago/Rockford International Airport ,
Dallas/Fort Worth International Airport ,
Philadelphia International Airport ,
Ontario International Airport ,
Miami International Airport ,
Columbia Metropolitan Airport , and
Bradley International Airport in
Hartford (CT) . A new UPS hub is set to be opened at
Shanghai Pudong International Airport in 2008. It will link for all of China to Shanghai.
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- UPS delivered two Beluga whales from Mexico City to the Georgia Aquarium .20
- UPS's total United Way Of America contribution of more than $57.3 million set a new national record.21
- UPS inspired the off-Broadway musical '' Romance On Wheels '' during World War II .
- The body design of the "package cars" is unique to UPS, and the cars are only operated by them. Retired cars either become crew vans for use at air hubs, or are destroyed. The manufacturer's name, Grumman-Olson , is not displayed on the outside of the car.
- A business biography about UPS and its founder Jim Casey: ''BIG BROWN: The Untold Story of UPS'' was published in February 2007.
- UPS's " Whiteboard " Ad Campaign , which launched 6 January , 2007 , features the song " Such Great Heights " by The Postal Service .22
- The tops of many of UPS trucks are not painted brown but are in fact a white and translucent skylight; this allows operators to take advantage of natural light in daytime to see the vehicle's inventory.
- UPS was one of the two main delivery services to transfer '' Harry Potter And The Deathly Hallows '', which they delivered not only to bookstores before the book was officially released but also on July 21, 2007 to customers who had ordered their books online, the other one being the United States Postal Service who received the books directly from UPS for final delivery.
- "Insourcing," Thomas L. Friedman , ''The World Is Flat: A Brief History of the Twenty-first Century,'' New York: Farrar, Straus and Giroux, updated and expanded, 2006, pp. 167-176.
- "Big Brown: The Untold Story of UPS" Niemann, Greg . John Wiley & Sons, 2007.
