Logistics provider UPS and the Hong Kong Airport Authority have entered into an agreement that will improve UPS service to customers and enhance the company’s operations in Asia. A new hub will be located at the Hong Kong International Airport and near the Hong Kong-Zhuhai-Macau Bridge
The hub measuring 20,000 sqm will be completed by 2028. It will have direct access to aircraft. The facility is being designed to handle close to 1 million tons of annual capacity, giving UPS and its customers around the world better and more reliable connectivity to Hong Kong, the Greater Bay Area.
Importance of Hong Kong in logistics
The International Trade Administration (ITA) explains Hong Kong is a regional logistics hub for Asia Pacific. Hong Kong International Airport is also the second busiest cargo facility in the region. “Cross-border e-commerce: The exponential growth of cross border e-commerce has presented Hong Kong with a unique opportunity to develop its logistics sector and improve its supply chain offerings in warehousing, distribution, and fulfillment facilities,” ITA reports.
UPS acquires reverse logistics firm
Earlier this year, the company announced its acquisition of software and reverse logistics company Happy Returns.
Los Angeles-based Happy Returns provides no-box, no-label returns to merchants and customers. Its network consists of over 10,000 box-free return locations in the US.
Automation for package flow
The logistics giant has also been looking toward automation in 2023. UPS is now using automated technology to improve its package flow.
The company has initiated several technological improvements targeting certain processes in its operations that are physically demanding on employees. These processes will also ensure faster throughput.
Pick-up-and-place technology is being used to help staff sort small packages. Unloading technologies now help UPS employees unload easily and give customers better package care.
In 2023, 57% of UPS’ packages processed through the company’s network went through automated facilities. The businesses’ airfreight facilities are also equipped with automated package flow technology.
UPS’ UK operations
Last month, the company announced it will expand its Access Point locker network in the UK. This will see UPS partner with smart locker providers and open 400 new locations where deliveries can be made.
Customers in the UK can have packages sent to their nearest location when they are away. This gives customers convenience to collect their package at a locker any time.
Global parcel delivery market
Maximize Market Research reports one of the primary drivers fuelling the expansion of the parcel delivery industry is the rising e-commerce sector, as well as the growing cross-border trade. “The acceptance of international trade and B2C shipments has increased as cross-border trade routes have developed, particularly in emerging economies.”
The report further adds the growing demand of consumers for purchasing online through various e-commerce platforms is boosting the market growth. “To distribute their products across national and international borders, e-commerce stores work with courier service providers.”
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About the author
Sharl is a qualified journalist. He has over 10 years’ experience in the media industry, including positions as an editor of a magazine and Business Editor of a daily newspaper. Sharl also has experience in logistics specifically operations, where he worked with global food aid organisations distributing food into Africa. Sharl enjoys writing business stories and human interest pieces.
