📦 UPS under pressure: Declining volumes and uncertainty around global trade!
UPS $UPS released 2Q results that show the changing dynamics in international logistics. Sales and profits are down, while volumes are suffering due to new tariff rules and trade tensions between the US and China.

Earnings per share: $1.55 (last year $1.79)
Demand under pressure: new tariffs on shipments under $800 reduce the attractiveness of cheap goods from platforms like Temu and Shein

🔍 Impact of tariffs
The US has also imposed tariffs on low-value shipments from China, dampening the most profitable routes between China and the US. Of the original 120 % the tariff has been reduced to 54 %but consumer demand is not as strong.

⚠️ UPS is losing key e-commerce volumes that have held up in recent years.

The company has not updated its full-year guidance for the second consecutive quarter, and the markets see this as a signal of uncertainty and strategic wait-and-see.

UPS, along with FedEx $FDX, often serves as an indicator of global economic health, and their results now signal that global demand is weakening, especially in discretionary online purchases.

High dependency UPS on Asian-American trade is a very large risk affecting the company's operations.

UPS will have to rely more on growth in B2B business-to-business (B2B) segments, domestic logistics and cost optimization.

UPS stock is down more than 30% since the beginning of the year!

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