Dive Brief:
- UPS Worldwide Express Freight is expanding service to nine additional countries: Bahrain, Bangladesh, Malta, Kuwait, Morocco, Pakistan, Qatar, Sri Lanka and Tunisia.
- The guaranteed service is meant for urgent, high-value, heavy shipments of more than 150 pounds, such as items needed to fill inventory shortages or replace equipment.
- The number of businesses using the service has grown by more than 250 percent since the program's 2013 introduction, as the service now reaches 66 origin and 64 destination nations or territories.
Dive Insight:
"The growth of the UPS Worldwide Express Freight service in a relatively short time period shows it is fulfilling a critical market need for a reliable, urgent heavy freight international shipping service," said UPS' President of U.S. International Exports, Bill Seward.
In general, air freight appears to be on the rise according to data from the International Air Transport Association (IATA). Global air freight demand rose 4.3% year over year in June, while capacity increased by 4.9%. The demand increase marked the fastest growth rate in 14 months.
However, air cargo markets have been in the "doldrums" for several years, according to IATA Director General and CEO Tony Tyler, and the business environment remains fragile given sluggish global economic growth, downward trends in world trade volumes and uncertainty arising from the Brexit vote.