UPS Reports Growth Resumption on China-to-US Trade Lane
UPS has reported that air freight volumes along the trans-Pacific trade lane have returned to year-over-year growth, beginning in May 2026. This follows a period of decline due to U.S. tariffs and the expiration of duty-free exemptions for Chinese goods. The company cited increased demand from higher-value cargo flows as contributing factors. UPS also announced an increase in full-year revenue and earnings guidance after completing its 18-month reduction in package deliveries for Amazon, which had previously contributed significantly to volume declines. While UPS's total air average daily volumes were down slightly year-over-year due to the loss of Amazon business, excluding Amazon showed a modest improvement. UPS now expects consolidated revenue of approximately $91.2 billion and operating profit around $8.65 billion for 2026. The company is also investing in automation technologies like RFID and AI as part of broader cost-cutting efforts.