Description of United Parcel Service Inc's Business Segments

United Parcel Service Inc. (UPS) Overview

United Parcel Service Inc. (UPS) is a renowned global provider of logistics, package delivery, and supply chain management services. Founded in 1907, UPS has evolved from a small messenger company into a multinational corporation with a complex portfolio of services tailored for both domestic and international markets.

Domestic Package Products and Services

Ground Delivery Services

UPS has built its reputation primarily on ground delivery services. Today, its standard ground service is robust, providing coverage to all addresses in the contiguous 48 states of the U.S. The company can handle packages weighing up to 150 pounds and with a maximum combined length and girth of 165 inches.

- UPS Hundredweight Service: This service is designed for customers sending multiple packages that have a total weight of 200 pounds or more. By consolidating shipments headed to one recipient and shipping on the same day, customers can enjoy significant cost savings compared to traditional less-than-truckload (LTL) or air freight published rates.

Air Delivery Services

In addition to ground services, UPS offers extensive air delivery options across the United States.

- UPS Next Day Air: This service guarantees next-business-day delivery by 10:30 a.m. for over 74% of the U.S. population, with options for delivery by noon for an additional 15%. For time-sensitive shipments, Saturday delivery is also available for an extra fee.

Additional Services

To enhance customer convenience, UPS provides a variety of supplementary services, including:

- Consignee Billing: Simplifies billing for the recipient.
- Quantum View Manage: Offers visibility of shipping information and tracking.
- Delivery Confirmation: Provides confirmation upon package delivery.
- UPS Returns: Streamlines the returns process for customers.

International Package Products and Services

UPS operates internationally, delivering packages to over 200 countries and territories worldwide. This includes a comprehensive portfolio of import, export, and domestic services which cater to global shipping needs.

- Global Delivery Services: UPS provides guaranteed delivery options, including 8:00 a.m. 8:30 a.m. 10:30 a.m. and 12:00 p.m. next-business-day services to major cities around the globe.

- Customs Clearance: UPS handles full customs clearance services for shipments, ensuring compliance and facilitating smoother logistics across borders.

Regional Expansion

- Europe: With significant operations in this region, UPS has expanded its air hub in Cologne, Germany, to bolster service capabilities and accommodate growth in transborder services within the European Union.

- Asia: UPS continues to invest in technology and infrastructure in Asia to enhance services. Key initiatives include opening the intra-Asia hub at Clark Air Force Base in the Philippines and establishing new flight routes to improve connectivity across regions, particularly to Europe.

- Latin America: UPS is focused on expanding service offerings through the Americas International Gateway in Miami and has developed solutions for cross-border shipping between the U.S. Canada, and Mexico via the UPS Trade Direct service, which integrates multiple logistics capabilities for efficiency.

Specialized Shipping Services

- UPS Trade Direct Ocean: This innovative service allows goods shipped internationally via ocean transport to be transformed into pre-labeled small packages or less-than-truckload shipments, reducing handling and accelerating delivery.

Non-Package Products and Services

Supply Chain Services

UPS Supply Chain Solutions encompasses a diverse portfolio of over 60 services aimed at optimizing supply chain operations, including:

- Logistics and Distribution: Services like warehousing, inventory and order management, reverse logistics, and cross-docking.
- International Trade Management: This includes freight forwarding, customs brokerage, and consulting on international trade.
- Transportation and Freight: UPS facilitates multimodal transportation options, offering air, ocean, rail, and ground freight solutions.

UPS Capital and Consulting

UPS Capital provides financial services such as asset-based lending and trade finance, while UPS Consulting offers strategic advisory services for supply chain design and optimization.

Electronic Services

UPS provides a suite of online solutions aimed at enhancing shipping and tracking efficiencies for customers:

- UPS WorldShip: A desktop application that enables users to process shipments, print labels, and manage tracking efficiently.
- UPS CampusShip: A web-based solution for companies with multiple locations, allowing decentralized shipping while maintaining centralized control.
- UPS Internet Shipping: A simple web-based platform for shipping without the need to install software.
- UPS OnLine Host Access: Facilitates direct electronic connectivity between UPS and customers systems for seamless information sharing.

Summary

Overall, United Parcel Service Inc. continues to bolster its position in the logistics industry through a comprehensive range of domestic and international package delivery services, specialized supply chain solutions, and advanced electronic shipping tools. The company is committed to adapting its offerings to meet the evolving needs of customers while pursuing growth opportunities across global markets.

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Composition of United Parcel Service Inc Revenues by Segments


Supply Chain Solutions SCS	11.97 %	of total Revenue
U S U S Domestic Package	66.62 %	of total Revenue
International International Package	21.41 %	of total Revenue
Next Day Air U S U S Domestic Package	11.1 %	of total Revenue
Deferred U S U S Domestic Package	4.93 %	of total Revenue
Ground U S U S Domestic Package	49.23 %	of total Revenue
Cargo and Other U S U S Domestic Package	1.36 %	of total Revenue
Cargo and Other International International Package	0.74 %	of total Revenue
Domestic International International Package	3.94 %	of total Revenue
Export International International Package	16.73 %	of total Revenue
Forwarding Supply Chain Solutions SCS	3.09 %	of total Revenue
Logistics Supply Chain Solutions SCS	6.65 %	of total Revenue
Other Supply Chain Solutions SCS	2.23 %	of total Revenue
Reconciliation	11.97 %	of total Revenue
U S Domestic Package Segment	66.62 %	of total Revenue
International Segment	21.41 %	of total Revenue

Q1 three months ended (Mar 31 2026)
Revenues by Business Segments	Revenues (in millions $)	% (of total Revenues)
Supply Chain Solutions SCS	2,537.00	11.97 %
U S U S Domestic Package	14,125.00	66.62 %
International International Package	4,540.00	21.41 %
Next Day Air U S U S Domestic Package	2,354.00	11.1 %
Deferred U S U S Domestic Package	1,045.00	4.93 %
Ground U S U S Domestic Package	10,438.00	49.23 %
Cargo and Other U S U S Domestic Package	288.00	1.36 %
Cargo and Other International International Package	157.00	0.74 %
Domestic International International Package	835.00	3.94 %
Export International International Package	3,548.00	16.73 %
Forwarding Supply Chain Solutions SCS	656.00	3.09 %
Logistics Supply Chain Solutions SCS	1,409.00	6.65 %
Other Supply Chain Solutions SCS	472.00	2.23 %
Reconciliation	2,537.00	11.97 %
U S Domestic Package Segment	14,125.00	66.62 %
International Segment	4,540.00	21.41 %
Total	21,202.00	100 %

Q1 three months ended (Mar 31 2026)
Revenue Growth rates by Segment	Y/Y Revenue %	Q/Q Revenue %
Supply Chain Solutions SCS	-6.49 %	-
U S U S Domestic Package	-2.32 %	-
International International Package	3.82 %	-
Next Day Air U S U S Domestic Package	-0.3 %	-
Deferred U S U S Domestic Package	-0.38 %	-
Ground U S U S Domestic Package	-2.53 %	-
Cargo and Other U S U S Domestic Package	-15.54 %	-
Cargo and Other International International Package	-0.63 %	-
Domestic International International Package	8.3 %	-
Export International International Package	3.02 %	-
Forwarding Supply Chain Solutions SCS	-9.64 %	-
Logistics Supply Chain Solutions SCS	-10.37 %	-
Other Supply Chain Solutions SCS	13.73 %	-
Reconciliation	-6.49 %	-
U S Domestic Package Segment	-2.32 %	-
International Segment	3.82 %	-
Total	-1.6 %	-

Q1 three months ended (Mar 31 2026)
Income by Business Segments	Income (in millions $)	% (Profit Margin)
Total	864.00	4.08 %

Q1 three months ended (Mar 31 2026)
Income Growth rates by Segment	Y/Y Income %	Q/Q Income %
Total	-27.21 %	-

Annual Report on United Parcel Service Inc Divisions, Sales by Country


Reconciliation	11.92 %	of total Revenue
U S Domestic Package Segment	67.13 %	of total Revenue
International Segment	20.95 %	of total Revenue
U S Domestic Package Next Day Air	10.89 %	of total Revenue
U S Domestic Package Deferred	5.01 %	of total Revenue
U S Domestic Package Ground	49.83 %	of total Revenue
U S Domestic Package Cargo Other	1.4 %	of total Revenue
International Package Domestic	3.84 %	of total Revenue
International Package Export	16.33 %	of total Revenue
International Package Cargo Other	0.79 %	of total Revenue
SCS Forwarding	3.29 %	of total Revenue
SCS Logistics	6.6 %	of total Revenue
SCS Other	2.02 %	of total Revenue
United States	76.06 %	of total Revenue
International	23.94 %	of total Revenue

Twelve months ended 2025
UPS s Annual Revenue by Geography and Business Segments	Sales (in millions $)	% (of total Sales)
Reconciliation	10,566.00	11.92 %
U S Domestic Package Segment	59,519.00	67.13 %
International Segment	18,576.00	20.95 %
Total	88,661.00	100 %
U S Domestic Package Next Day Air	9,652.00	10.89 %
U S Domestic Package Deferred	4,446.00	5.01 %
U S Domestic Package Ground	44,183.00	49.83 %
U S Domestic Package Cargo Other	1,238.00	1.4 %
International Package Domestic	3,401.00	3.84 %
International Package Export	14,479.00	16.33 %
International Package Cargo Other	696.00	0.79 %
SCS Forwarding	2,916.00	3.29 %
SCS Logistics	5,855.00	6.6 %
SCS Other	1,795.00	2.02 %
United States	67,432.00	76.06 %
International	21,229.00	23.94 %

Twelve months ended 2025
UPS s Annual Income by Country and Business Segments	Income (in millions $)	% (Profit Margin)
Total	5,572.00	6.28 %

Twelve months ended 2025
Annual Revenue and Income Growth by Country and Business Segments	% Y/Y Sales Growth	% Y/Y Income Growth
Reconciliation	-17.03 %	-
U S Domestic Package Segment	-1.42 %	-
International Segment	3.43 %	-
Total	-2.65 %	-3.63 %
Supply Chain Solutions	-	-
U S Domestic Package Next Day Air	-0.53 %	-
U S Domestic Package Deferred	-6.54 %	-
U S Domestic Package Ground	-2.57 %	-
U S Domestic Package Cargo Other	117.57 %	-
International Package Domestic	6.75 %	-
International Package Export	2.38 %	-
International Package Cargo Other	10.13 %	-
SCS Forwarding	-38.32 %	-
SCS Logistics	-9.04 %	-
SCS Other	14.4 %	-
United States	-4.2 %	-
International	2.65 %	-
U S Domestic Package	-	-
International Package	-	-
Supply Chain Solutions Forwarding	-	-
Supply Chain Solutions Logistics	-	-
Supply Chain Solutions Other	-	-
Domestic Segment	-	-
Other items	-	-

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