UPS reported a double-digit increase in volumes for the third quarter, which was driven by strong freight forwarding demand from Asia.

The multinational logistics company said in a statement that its average daily volumes increased 13.5% year-on-year in the third quarter, and consolidated revenue increased 15.9% to US$21.2 billion during the same period.

Strong Asia growth 

“Our performance highlights the agility of our global integrated network amid the ongoing challenges of the pandemic. Our results were fueled by continued strong outbound demand from Asia and growth from small and medium-sized businesses,” said Carol Tomé, UPS chief executive officer, citing how the firm helped keep supply chains moving.

UPS said average daily volumes from domestic operations in the US grew by 13.8%, with growth across all products and continued elevated residential demand.

Internationa average daily volumes also expanded by 12.1%, with double-digit export volume growth globally and continued strong outbound demand from Asia.

Revenue also increased by 16.5% in the third quarter, which UPS attributed to the strong freight forwarding demand from Asia. 

Industry outlook

UPS said it is not providing any income guidance due to the uncertainty around the timing and pace of the economic recovery.

It said the company is also "unable to predict" the extent of the business impact or the duration of the coronavirus pandemic, or reasonably estimate its operating performance in future quarters.

“Our Better, not Bigger approach had a positive impact on our performance in the quarter, specifically through the revenue-quality actions we’ve taken. Additionally, we recently launched new initiatives to further reduce our costs,” said Brian Newman, UPS chief financial officer. 

“Looking ahead to the fourth quarter, we are collaborating with our customers and using our proven tools to control volume and ensure the resiliency of our network.  We are focused on delivering a successful peak and generating cash returns.”