During the second quarter, UPS saw international small package revenue rise by 6.2 percent, year-over-year, to $3.3 billion, as domestic package revenue increased by 5.2 percent to $8.7 billion.
A 9.1-percent growth in exports fueled the international growth, with exports to Europe increasing by 13 percent, and exports to Asia rising by 6 percent. Revenue per package declined by 1.7 percent, year-over-year, due to shippers trading-down for non-premium services.
Revenue per package also declined domestically, falling 2 percent compared to the same period in 2013, due primarily to a rise in lightweight e-commerce shipments. Daily package volume shot up 7.4 percent on an 8.1-percent rise in UPS Ground shipments and a 5.4-percent rise in Deferred activity.
During the quarter, revenue from the supply chain and freight segment increased by 6.5 percent to $2.3 billion because of forwarding and distribution growth.
To continue growth, officials will invest in capacity and other key projects, bringing 2014 operating expenses up by $175 million. This will lower diluted earnings, according to officials, but earnings will still represent at least a 7-percent improvement over 2013.
"The strong revenue growth this quarter is evidence that our portfolio resonates with customers, with more choosing UPS as their logistics provider," UPS Chairman and Chief Executive Officer Scott Davis said in a statement. "As we've said, 2014 is the year of investing for the customer. We are providing new capabilities and expanding capacity to ensure UPS meets the rapidly growing needs of the marketplace."