UPS to buy US$1.5b of Boeing freighters as air cargo booms

[ATLANTA] United Parcel Service agreed to buy 19 Boeing 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 on Tuesday. The planes have a combined base value of US$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.

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