UPS significantly adds to LCL lane density in 2012

UPS said this week that it added more than 300 direct less-than-container-load (LCL) ocean lanes to its global ocean product portfolio last year.

Company officials said this expansion was made to address market trends related to increased manufacturing and consumer demand in many regions, with these lanes originating in Asia, Europe, the Middle East, Africa, and South Africa. With this expansion, UPS has more than 1,700 direct LCL lanes serving 116 countries.

For 2012, UPS said it added the following lanes:
-139 Asia outbound lanes, with 68 from China to connect retailers and industrial suppliers in Europe and North America to new global markets;
-91 Europe/Middle East/Africa (EMEA) outbound lanes;
-42 Intra-Asia lanes;
-36 Intra-EMEA lanes;
-33 North American outbound lanes;
-15 Latin American outbound lanes; and
-7 Intra-Latin American lanes

Also included in this expansion are: 10 outbound direct LCL lanes to the U.S., Europe, and intra-Asia; 12 inbound and outbound lanes to Busan, South Korea to meet demand from the March 2012 U.S.-South Korea Free Trade Agreement; and 81 direct LCL lanes in Europe, which is a response to the countries in the European Union looking for high-growth emerging markets for manufacturing expansion.

UPS has been an NVOCC (Non-Vessel Operating Common Carrier) since 2001 when it acquired global freight forwarder Fritz Companies, which began offering NVOCC services three decades prior in 1972, said Andy Huckbody, vice president of UPS Ocean Freight Services, in an interview. Today, he said, UPS is one of the world’s top NVOCCs, offering LCL services from virtually any origin and destination in the world.

“UPS’s involvement in the ocean freight forwarding industry stemmed from a strategy of providing broad supply chain solutions that enable global commerce by expanding UPS’s global capabilities and enabling customers to reach the global marketplace faster,” he said. “Now UPS’s extensive integrated transportation network and multi-modal freight services, such as the UPS LCL offering, give companies maximum flexibility in their supply chains to adapt to new market demands and ensure that they can move goods to customers in the most efficient and effective way possible.”

Huckbody said a major driver for the 300-lane expansion was to address the growing demands in the global marketplace and meet the needs of its customers for a service that allows them to cost-effectively transport their freight shipments, while allowing for flexibility in their inventory levels as needs change. UPS will continue to anticipate these needs, and will open additional LCL lanes throughout 2013 based on current and anticipated demand in the global marketplace, he added.

When asked what the biggest benefits of this announcement are for shippers, Huckbody said cited greater global access to a freight solution that is cost-effective, dependable and that allows more flexibility for shipper’s inventory levels.

“This news is particularly important, as it allows customers to reach high-priority emerging markets directly, eliminating significant time and cost barriers,” he said.