More packages sent by ground than air: UPS

UPS                  LOGISTICS

Singapore - More customers are choosing the less expensive option and sending packages by ground than air, UPS said.

UPS said improving global economies has helped boost its first quarter profit and prospects for the rest of the year. First-quarter profits rose 33%.

However, the company is seeing higher demand in people sending packages by ground rather than air. The trend is expected to continue in the near future as more customers, amid tight budgets at home and at work, seek slower methods of delivery that are less expensive than faster methods like next-day air.

The company also restructured its business over the last 18 months, including axing jobs. UPS said it does not plan any significant hiring anytime soon, at least until the recovery is on more solid footing.

"We intend to sustain the reductions we have made and control all those cost items," said Kurt Kuehn, CFO of UPS.

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