Express package specialist United Parcel Service Inc. (UPS) has sealed an order to purchase 19 Boeing medium widebody 767-300 freighters due to a significant surge in e-commerce worldwide.
At the time of robust need for air cargo, freighters have a bright spot for Aerospace giant Boeing as it has capped a record-breaking year in 2021 for freighter sales. Boeing announced that it had received 80+ firm orders for new widebody freighters and converted freighters. Now, the latest order deal of UPS for 19 new 767 freighters marks the end of a successful year for the Boeing Freighter Family.
On Tuesday, Boeing announced a multi-year agreement with UPS for 19 767 Freighters to help meet expected long-term global demand for air cargo. UPS will deliver these freighters between 2023 and 2025 in alignment with its strategy and capital expenditure forecast. By that time, projections forecast an annual increase of 4% in air cargo demand. At the end of the next three years, UPS will invest in acquiring about 27 aircraft to replace aging trijets and pursue incremental fleet growth.
Need for modern, efficient jets
UPS has been a key beneficiary of the pandemic shift to e-commerce shipments as its sales soared and earnings roared worldwide. The package delivery company UPS benefitted from the novel coronavirus pandemic-fueled rises in lucrative healthcare and air shipments. Its stock hit an all-time high as demand for delivery rose with online shopping and home quarantine.
UPS required a modern, efficient fleet to serve its customers at a time of boom in online shopping and significant demand for air cargo. UPS Operations President Nando Cesarone described Boeing 767 as the most versatile aircraft that supports the company’s sustainability efforts with its outstanding operational efficiency and payload capability. Boeing 767-300Fs are mid-size cargo jets and will be workhorses of UPS to meet expected near-term and long-term cargo demand with proven economics, reliability, and flexibility.
The launch customer of Boeing 767 freighter in 1995, UPS operates a fleet of 71 B767-300Fs, four B767-300s, and four B767-300(ERBCF) s. The new Boeing 767-300Fs will likely replace the outgoing McDonnell Douglas fleet as a flexible platform for long-haul, regional, and feeder markets. At present, UPS operates a fleet of 236 Boeing freighters covering Boeing 747, Boeing 757, Boeing 767, and MD-11 type.
Historic number of Boeing freighter orders in 2021
Boeing is poised to record an incredible year of Boeing freighter sales as air cargo demand skyrocketed due to e-commerce expansion and the ongoing express cargo market.
The crippled fleet capacity, disruptions to the international supply chain, and e-commerce parcels dominating volumes moving through the network resulted in an increased dependence on air cargo for time-sensitive and urgent shipments. Boeing Company reaped an impressive order for cargo jets while passenger traffic plunged. Boeing forecasts growth and entry of passenger-cargo conversion freighters over coming years and increases in freighter fleet by 70% by 2040.
As the crisis unfolds and the world rejuvenates from drying economies, cargo links will serve to be one of the strongest parts of air revenue to keep shelves stocked. With UPS deliveries commencing in 2023, the delivery giant will ferry packages and other cargo worldwide by capturing as much of the growing demand as possible.
Airbus Company, another aerospace giant, has also responded to a strong cargo period with the new A350 F product. Boeing is also opting for the 777X freighter version in the post-crisis world to create a versatile portfolio.
Boeing 767 Freighters
Based on Boeing 767 ER (Extended Range) passenger twinjet, Boeing 767 Freighter is a popular aircraft with outstanding cargo capability. With more than 270 orders since its inception in 1995, this aircraft has seen strong market demand with its capacity to carry up to 52.4 tons of revenue cargo with an intercontinental range. It is characterized by excellent fuel capacity, operational flexibility, low noise level, and an all-digital flight deck.
It is the latest iteration of the industry’s evolution to meet ever-changing market requirements in cargo handling. The industry’s touchstone for loading flexibility and efficiency is derived through continuous technology enhancements. The airplane has unrivaled profitability and reliable performance and is ideal for replacing aging 707 and DC-8 freighters.
Atlanta-based United Parcel Service (UPS) is a multinational shipping and receiving and supply chain company specializing in courier express, freight forwarding, and logistics services worldwide. It is the world’s largest delivery company, which consolidated revenue of $23.3 billion in the third quarter of 2021.