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            september 20, 2019

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UPS to transfer its Asian flights from Hong Kong to Shenzhen


When the new US$180 million UPS intra-Asia hub at Shenzhen becomes operational in six weeks, American express giant UPS will transfer its Asian flights from Hong Kong to Shenzhen, reports Logistics Week.
UPS Hong Kong-Macau managing director KK Leung also said the new Shenzhen hub would cut delivery time by at least a day while keeping UPS in closer touch with Guangdong manufacturers.
The Shenzhen facility covers 89,000 square metres. It will initially offer flights to eight to 10 destinations and have a handling capacity of 18,000 parcels per hour. Shenzhen customs also agreed to ease controls on UPS packages to speed delivery, said the report.
The intra-Asia hub, he said, will help Hong Kong and Shenzhen in separating their functions more clearly.
Mr Leung also said the peak season for express industry had come late this year, but that it will last until Chinese New Year in February 2010.
Mr Leung also said UPS is increasing capacity for Hong Kong in a bid to meet the growing demand, Logistics Week reported.
He said consumer power in European and US markets was flourishing in the latter half of 2009 compared to the first half. The express package volume has shown tendency of increase starting from August. Mr Leung expected to see year-on-year growth in global express package volume in the fourth quarter, but declined to give an estimate on the annual volume.
UPS predicted that it will deliver about 400 million packages during the Christmas holiday period, more than last year's volume. December 21 is expected to the busiest day when there would be about 22 million packaged delivered in the world.
The market is in a rebound, said Mr Leung, but it's not clear how long the European and US markets will thrive. The Christmas consumption peak season had come later this year than ever before.
The air cargo industry slashed capacity by mothballing freighters after experiencing the drastic fall in volumes in the first half of year. This caused shortage of capacity when the late Christmas peak season arrived, said Mr Leung.
UPS will manage to maintain capacity at a high level to meet the expected thriving demand ahead of Chinese New Year, he said. During the peak season, UPS will offer 36 weekly services from Hong Kong to Europe, US and other parts of Asia. Twenty-one will be US flights, nine to Europe, six to Asia. Even just before the lunar new year, UPS will still offer 18 US and nine European flights per week. 

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