UPS Freight

UPS Freight is the less than truckload shipping (LTL) division of UPS. UPS acquired on August 8, 2005, Overnite Transportation Company (and its subsidiary Motor Cargo) from the Union Pacific Corporation (parent company of the Union Pacific Railroad) for $1.25 billion.[1] On April 28, 2006, Overnite Transportation officially became UPS Ground Freight, Inc.[2]

UPS Freight truck with Motor Cargo and Overnite trailers in 2016.

The logos on the doors of the Overnite tractors were covered with signs showing the operator as UPS Freight. UPS Freight soon changed the color scheme of the tractors from blue and grey to UPS brown on the bottom, with a gold line near the center of the tractor and gray for the upper color. All new vehicles purchased by UPS Freight LTL come painted in these colors as the older Overnite equipment is replaced, while the new tractors for the truckload division (Former Overnite Transportation – Special Services Division) are solid white with the UPS shield on the roof fairing. [3]

UPS is recognized as a most loved brand for three years (2016-2019) straight by consumers.[4]

UPS Freight is based in Richmond, Virginia.[5]

International DuraStar UPS Freight

Reasons for buyout

Prior to the buyout of Overnite, FedEx had recently purchased LTL companies American Freightways (on the east coast) and Viking Freight (on the west coast), creating FedEx Freight. UPS spokesman Norman Black told industry news outlet FleetOwner that the LTL industry had become attractive due to the increasing economic and strategic attractiveness of the sector: “[LTL has become] attractive because of consolidations and watching the survivors grow and flourish as they’ve been improving operating ratios and developing new types of services customers respond to – especially in time-definite delivery options... That is what Overnite has been forefront of and that’s a huge trend in commerce now. Certainly we see it in the package world."[6]

References
  1. Trunick, Perry A (June 1, 2005). "The incredible shrinking LTL industry".
  2. "Cargo.Pk: News: UPS has acquired Overnite Transportation Co". 28 May 2006.
  3. Carlozo, Lou (March 28, 2016). "The Ups and Downs of UPS". money.usnews.com. Retrieved May 2, 2019.
  4. UPS (9 April 2019). "Consumers Rank UPS Among Top 5 Most Loved Brands In America". AP NEWS.
  5. "UPS 3Q profit up 1 percent as US revenue increases". www.usnews.com. October 27, 2016. Retrieved May 2, 2019.
  6. Terrence Nguyen, web editor (2005-05-16). "UPS to buy Overnite". Fleetowner.com. Retrieved 2010-06-02.
This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.