“UPS has a monopoly position in the world’s largest economy,” said Lupo this week at the 10th Annual Aviation Symposium, a global forum of aviation executives in Phoenix. He expressed “serious concern” about UPS’s dominant position in the U.S. ground delivery market and its impact on the global parcel/express delivery market.
Lupo cited a recent U.S. Department of Transportation (DOT) order indicating that UPS has 53% of the domestic U.S. parcel/express delivery market and almost 80% of the domestic U.S. ground delivery market, far outpacing its competitors.
He added that a DOT ruling issued last Friday dismissing a petition brought earlier this year by UPS that sought to revoke DHL’s license to conduct foreign air freight forwarding in the U.S. is an example of anti-competitive practices by UPS.
“Such extraordinary concentration poses considerable dangers to the shipping public,” Lupo said, citing repeated price increases by UPS and operating margins of 16% in the U.S. ground business -- more than double the industry average.
