UPS Freight, the trucking arm of $55.4 billion package giant UPS, increased less-than-truckload revenue 5.3 percent or $125 million in 2013 to $2.5 billion.
That’s a higher growth rate than in 2012, when the fourth-largest LTL carrier as ranked by revenue increased its annual sales by 3.5 percent.
UPS does not release an operating profit figure for the LTL carrier. The UPS Supply Chain and Freight division had an operating profit of $674 million in 2013.
The trucking company’s LTL volume increased 3.6 percent last year, as the Richmond, Va.-based carrier hauled approximately 41,500 shipments a day.
UPS Freight increased revenue per hundredweight or yield, a measure of pricing, 1.5 percent year over year, to $22.05, UPS said in its Jan. 30 earnings report.
Tonnage hauled rose 3.7 percent, while weight per shipment rose only 0.2 percent, an indication UPS Freight hauled more freight rather than just heavier freight.
In the fourth quarter, UPS Freight’s LTL revenue increased 2.3 percent as a result of tonnage and pricing increases, UPS said in an earnings conference call.
Revenue per hundredweight increased 1.6 percent in the quarter, slightly higher than the increase for 2013, as LTL pricing remained stable, said UPS.
UPS Freight got off to a good start in 2014 when its Teamsters employees approved a new five-year labor agreement, ending a seven-month contract dispute.