UPS to Buy $1.5 Billion of Boeing Freighters as Air Cargo Booms

UPS to Buy $1.5 Billion of Boeing Freighters as Air Cargo Booms
UPS Inc. cargo planes loaded with packages land and take off at UPS World Port Center at Louisville International Airport in Louisville, Ky. (John Sommers II for Transport Topics)

[Stay on top of transportation news: Get TTNews in your inbox.]

UPS Inc. agreed to buy 19 Boeing Co. freighter jets as soaring e-commerce and snarled shipping lines lead to a boom in air-cargo demand.

The package-delivery giant plans to accept the 767 Freighters between 2023 and 2025, according to a statement Dec. 21. The planes have a combined base value of $1.5 billion, according to aircraft appraiser Avitas, though customers typically receive discounts from list prices.

The purchase bolsters the UPS fleet and adds to a record-breaking year for Boeing’s freighter sales. Air-cargo demand has surged during the pandemic amid a rise in time-sensitive online shopping that is expected to last even after COVID-19 subsides. More companies have turned to air transport lately as ocean cargo routes suffer from delays.

UPS Inc. ranks No. 1 on the Transport Topics Top 100 list of the largest for-hire carriers in North America.

Want more news? Listen to today's daily briefing below or go here for more info: