UPS to purchase 19 Boeing 767 Freighters as e-commerce expands – Reuters

The company logo for United Parcel Service (UPS), is displayed on a screen at the New York Stock Exchange (NYSE) in New York, U.S., October 22, 2019. REUTERS/Brendan McDermid/File Photo

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Dec 21 (Reuters) – Package delivery giant United Parcel Service Inc (UPS.N) has placed an order for 19 of Boeing Co’s (BA.N) 767 freighters as a surge in e-commerce has raised demand for air cargo, the U.S. planemaker said on Tuesday.

The deal adds to a “record-breaking year” for Boeing freighter sales, the planemaker said, adding sales include 80 firm orders for new widebody freighters and more than 80 orders for Boeing Converted Freighters.

The freighter market has been a rare bright spot for planemakers after facing pandemic lows, as a boom in online shopping, supply chain disruptions and a drop in passenger plane flights has stoked demand.

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UPS, which has been a key beneficiary of the pandemic shift to online shopping, will take the delivery of aircraft between 2023 and 2025, its U.S. Operations President Nando Cesarone said.

Boeing said the new jets will enable UPS, the Freighter’s launch customer, to meet expected near-term and long-term cargo demand.

Since the launch of the model in 1995, UPS has ordered a total of 91 of the aircraft, according to the statement.

Boeing, which controls 90% of the freighter market, forecasts an annual increase of 4% in air cargo demand over the next 20 years.

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Reporting by Aishwarya Nair in Bengaluru; Editing by Krishna Chandra Eluri

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