• ITVI.USA
    15,487.730
    -50.360
    -0.3%
  • OTRI.USA
    25.300
    0.130
    0.5%
  • OTVI.USA
    15,446.060
    -51.850
    -0.3%
  • TLT.USA
    2.720
    0.000
    0%
  • TSTOPVRPM.ATLPHL
    2.550
    -0.030
    -1.2%
  • TSTOPVRPM.CHIATL
    3.030
    -0.080
    -2.6%
  • TSTOPVRPM.DALLAX
    1.450
    0.150
    11.5%
  • TSTOPVRPM.LAXDAL
    2.910
    -0.030
    -1%
  • TSTOPVRPM.PHLCHI
    1.700
    -0.040
    -2.3%
  • TSTOPVRPM.LAXSEA
    3.020
    -0.010
    -0.3%
  • WAIT.USA
    120.000
    0.000
    0%
  • ITVI.USA
    15,487.730
    -50.360
    -0.3%
  • OTRI.USA
    25.300
    0.130
    0.5%
  • OTVI.USA
    15,446.060
    -51.850
    -0.3%
  • TLT.USA
    2.720
    0.000
    0%
  • TSTOPVRPM.ATLPHL
    2.550
    -0.030
    -1.2%
  • TSTOPVRPM.CHIATL
    3.030
    -0.080
    -2.6%
  • TSTOPVRPM.DALLAX
    1.450
    0.150
    11.5%
  • TSTOPVRPM.LAXDAL
    2.910
    -0.030
    -1%
  • TSTOPVRPM.PHLCHI
    1.700
    -0.040
    -2.3%
  • TSTOPVRPM.LAXSEA
    3.020
    -0.010
    -0.3%
  • WAIT.USA
    120.000
    0.000
    0%
Air CargoAmerican ShipperNewsParcel

UPS expanding at Kansas City airport as e-commerce surges (video)

UPS will be able to park more planes simultaneously and process parcels faster next year once it completes a major modernization at its Kansas City, Missouri, air gateway. The project is made possible by a new lease agreement.

A significant increase in e-commerce business is driving the UPS infrastructure investment in Kansas City, as it is throughout the company.

The express parcel hauler will expand its warehouse ramp at Kansas City International Airport to 534,000 square feet, with five aircraft parking positions — up from the current two — and a complete renovation of the 50,000-square-foot processing facility, according to the airport authority and UPS. New high-speed sorting equipment will increase sorting capacity to 5,000 packages per hour from 1,500 today.

UPS Airlines’ operation at Kansas City International Airport. (Source: UPS)

The Kansas City Aviation Department last week finalized a 30-year lease extension with real estate developer Aeroterm, which subleases the property to UPS. 

“In addition to the need for additional capacity in Kansas City, the project is also expected to improve service reliability” for northwest Missouri and northeast Kansas. “With packages sorted faster, they’re out for delivery a little sooner,” UPS Airlines spokesman Jim Mayer said.

UPS expects to hire about 60 new employees to help sort packages. The project is scheduled to begin in late October and be completed in the fall of 2021.

UPS launched air operations from Kansas City International in 1986 and now operates six flights per day. 

“Expedited transportation in the Kansas City region dates back to the Pony Express days in the 1800s,” said Kansas City Director of Aviation Pat Klein in a statement. “Our central U.S. location continues to be key for air freight operations.”

Global e-commerce sales are projected to more than double to $6.5 trillion by 2023, according to Statista. The Boston Consulting Group estimates U.S. e-commerce sales will double too, to $1 trillion, growing at six times the rate of all retail transactions.

Those projections came before the coronavirus pandemic, which has prompted an explosion in online shopping by people avoiding brick-and-mortar stores because of stay-home orders or fear of being infected by the virus. Best Buy this week reported that e-commerce sales grew 242% from the year-ago quarter and now represent 53% of total sales.

Amazon (NASDAQ: AMZN), is UPS’ largest customer, accounting for almost 12% of UPS’ $74 billion in revenue last year. 

UPS is enlarging its fleet of Boeing 767 aircraft, which are well suited for e-commerce shuttle operations, and opening an airport distribution center in Gary, Indiana, in November to keep up with package growth in the Chicagoland area.

Click here for more FreightWaves/American Shipper stories by Eric Kulisch.

RECOMMENDED READING:

E-commerce drives multipronged expansion at UPS Airlines

UPS names new US, international heads

The Force is with the USPS

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Eric Kulisch, Air Cargo Editor

Eric is the Air Cargo Market Editor at FreightWaves. An award-winning business journalist with extensive experience covering the logistics sector, Eric spent nearly two years as the Washington, D.C., correspondent for Automotive News, where he focused on regulatory and policy issues surrounding autonomous vehicles, mobility, fuel economy and safety. He has won two regional Gold Medals from the American Society of Business Publication Editors for government coverage and news analysis, and was voted best for feature writing and commentary in the Trade/Newsletter category by the D.C. Chapter of the Society of Professional Journalists. As associate editor at American Shipper Magazine for more than a decade, he wrote about trade, freight transportation and supply chains. Eric is based in Portland, Oregon. He can be reached for comments and tips at ekulisch@freightwaves.com
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