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United Parcel Adds Stations, Extends China-Europe Rail Route

Zacks Equity Research

United Parcel Service, Inc. (UPS) announced that it has added six stations to its full and less-than-container load (FCL and LCL) multimodal rail service connecting Europe and China. This expansion will provide customers with more options for reducing supply chain costs. Following the move, they can balance cost/time-in-transit requirements in a better manner.

Changsha, Chongqing, Suzhou and Wuhan stations have been added to the existing ones -Zhengzhou and Chengdu- in China. Additionally, in Europe, Duisburg, Germany and Warsaw, Poland have been included as stations to the ones in Lodz, Poland and Hamburg, Germany

According to Cindy Miller, President of UPS Global Freight Forwarding, this rail service is expected to save customers up to 65% versus air freight and improve time-in-transit by 40% versus traditional ocean freight service.

The new rail service offers closed circuit TV monitoring during train transition, seal management, alarms and optional GPS container tracking. The customs clearance process has been simplified and is limited to China and European import/export nations. It also offers several other improved facilities that will provide customers with fast and cost effective shipping solutions.

We note that United Parcel, which competes with the likes of FedEx Corporation FDX, has been making constant efforts to expand. Toward this end, it has inked multiple deals and launched products.

United Parcel Service, Inc. Price


United Parcel Service, Inc. Price | United Parcel Service, Inc. Quote

Zacks Rank & Key Picks

United Parcel currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the broader transportation sector areRadiant Logistics RLGT and Gol Linhas Aereas Inteligentes GOL. Both Radiant Logistics and Gol Linhas sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Radiant Logistics performed impressively in the fourth quarter, delivering an earnings surprise of 900%, while shares of GOL Linhas gained over 36% in the last six months.

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