United Parcel Service Inc. said revenue rose nearly 16% in the third quarter as its business continues to be boosted by the influx of packages moving domestically and internationally during the pandemic.
The Atlanta-based delivery giant said that delivery volumes rose 13.8% in its large U.S. domestic business in the latest period as more people shopped online. Meanwhile, international shipments, which have benefited from a cut in shipping capacity from fewer passenger flights, rose 12%.
Overall profit rose 11.8% due to the extra business, although its U.S. business posted a decline in profit despite the higher demand due to the added costs and lower margins of delivering millions more packages to homes.
UPS Chief Executive Carol Tomé said that the business was boosted primarily by strong demand from Asia and resurgent growth from small and medium-size businesses shipping through its network.
Both FedEx and UPS have been inundated with packages during the pandemic as fewer consumers head to stores and more people shop online. The boom in the number of packages has overwhelmed their delivery networks and stretched delivery times, but the demand has given the carriers leeway to impose fees and negotiate higher rates from shippers.
