Transpac spot rates crash as pre-tariff demand for US imports from Asia fades
Container spot freight rates on the transpacific eastbound routes from Asia to the US west ...
WTC: RIDE THE WAVEFDX: TOP EXEC OUTPEP: TOP PERFORMER KO: STEADY YIELD AND KEY APPOINTMENTAAPL: SUPPLIER IPOCHRW: SLIGHTLY DOWNBEAT BUT UPSIDE REMAINSDHL: TOP PRIORITIESDHL: SPECULATIVE OCEAN TRADEDHL: CFO REMARKSPLD: BEATING ESTIMATESPLD: TRADING UPDATEBA: TRUMP TRADE
WTC: RIDE THE WAVEFDX: TOP EXEC OUTPEP: TOP PERFORMER KO: STEADY YIELD AND KEY APPOINTMENTAAPL: SUPPLIER IPOCHRW: SLIGHTLY DOWNBEAT BUT UPSIDE REMAINSDHL: TOP PRIORITIESDHL: SPECULATIVE OCEAN TRADEDHL: CFO REMARKSPLD: BEATING ESTIMATESPLD: TRADING UPDATEBA: TRUMP TRADE
UPS’s third-quarter results were released to Wall St today, with revenues declining from $14.29bn in the third quarter of 2014 to $14.24bn. However, profit was up from $1.21bn to $1.26bn with shipments growing by 1.9% to 1.1bn packages, led by US air products and European shipments. Now comes the interesting part of the year, and according this article by Reuters, we move into the peak shopping and home delivery season, which have been particularly challenging in recent years as the cost of delivering e-commerce purchases to households has increased incrementally. To mitigate these additional costs the company has sought to create its Access Point Network, an 8,000-strong web of local stores and locker locations across 100 cities where deliveries can be left if there is no one at home which will have “a dramatic impact on UPS’s ability to operate during the peak season”. Given how badly it misjudged demand in 2013 and 2014, it will find its performance under the microscope come this Christmas.
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