UPS Freight didn't increase less-than-truckload shipment volume much in 2010, but its LTL revenue leaped 10.9 percent to $2 billion, a sign higher rates are sticking.
UPS Freight's total revenue climbed 22.6 percent in the fourth quarter to $580 million and 13.6 percent for the full year to $2.2 billion, according to UPS data.
The industrial freight arm of package giant UPS increased its LTL shipments per day 1 percent compared with 2009, hauling on average 39,500 shipments a day.
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The carrier's revenue per hundredweight, or yield, however, jumped 8.4 percent in 2010, rising from $17.69 to $19.18 per hundredweight as LTL rates moved up.
LTL shipments did surge in the fourth quarter, rising 9.6 percent per day and 7.7 percent overall, boosting the carrier's revenue 20.1 percent to $526 million.
Fourth quarter yield was 8.7 percent higher year-over-year, rising to $19.95 per hundredweight. LTL gross weight hauled was up 10.4 percent to 2.6 million pounds.
As a unit of UPS Supply Chain Services, the Richmond, Va.-based carrier doesn't release a separate income statement, but its higher yield benefited its parent.
The group, which includes forwarding and logistics units, doubled its 2010 operating profit to $597 million, increasing revenue 16.5 percent to $8.7 billion.
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