Dallas, Texas 07/15/2013 (Financialstrend) – United Parcel Service, Inc. (NYSE:UPS), a package delivery company with primary operations in the United States and major international markets, is currently worried about the international shipments to be made to the slowing economies such as those of China. However, certain other issues in the domestic markets of the company are also presenting more concerns to the operations of the shipping and transportation services firm. Major retailers operating in the United States are currently resorting to e-commerce-based trading strategies that reduce the demand for package delivery services, especially the demand for shipments to longer distances, which are heavily declining.
It has further been reported that the world’s largest online retailer, Amazon.com, has recently been increasing the use of the company’s own truck services to replace the order fulfillment network of companies such as UPS and FedEx. Further, Amazon is providing for effective reduction in shipping costs by building the distribution warehouses closer to the customers. All these issues have brought new concerns of declining demand for the services of shipping companies such as United Parcel Service.
United Parcel Service, Inc. (NYSE:UPS) closed at $86.12 on Friday, recording a decline of 5.83% for the stock. During the day, the stock was fluctuating between a low intraday price of $85.49 and a high intraday price of $87.50 per share. The stock currently has a 52-week low of $69.56 and a 52-week high of $91.78 per share. United Parcel Service currently has a market cap of $81.33 billion with around 944.34 million outstanding shares in the market and institutional ownership of 55 percent of the company’s total equity capital. The stock witnessed active trading in around 15.34 million shares on Friday, while the average level of trading activity for the stock is at 3.59 million shares per day.
