As the world’s largest package delivery company, fuel consumption is a necessary business expense that accounts for an average of 5.6 percent of UPS’s operating revenue. From both a business and environmental perspective, UPS is committed to developing and testing innovative solutions and investing in technologies that minimize fuel consumption and reduce our impact on the environment.

Achieving maximum fuel efficiency on the road requires hours of effort behind the scenes in UPS’s corporate offices, technology centers and hubs, where packages are sorted and vehicles are loaded prior to final delivery. Accordingly, UPS has developed a number of programs and technologies that lead to reduced fuel consumption.

On the Ground

UPS Package Routing Technology

Effectively and efficiently delivering 15.6 million packages and documents a day takes a lot of planning. UPS has implemented several tools and procedures, called Package Flow Technologies, to optimize delivery routes. PFT includes a suite of hardware and software designed, in part, to help UPS plan the most effective route — before a package is even loaded into a delivery vehicle. The goal is to route vehicles more efficiently to drive fewer miles.

DIAD - UPS's Hand-Held Computer

Since 1991, UPS revolutionized the package delivery business when it developed and deployed the first Delivery Information Acquisition Device, known as the DIAD. The DIAD is the most comprehensive tracking device in the delivery industry, providing UPS drivers with data collection and transmission technologies that increase operational efficiencies and enable customers to track their packages in real time.

This technology includes internally-developed software that enables the driver to “see” each scheduled package delivery in the exact order needed to meet all the service requirements in the most effective way, reducing the number of miles driven and fuel consumption. The DIAD, used in 49 countries, also eliminates the use of 84 million sheets of paper, saving 7,308 trees per year.

Fuel Consumption

We have established a gallons per package measurement to chart progress in ground network fuel efficiency. It is calculated by dividing our total U.S. ground fuel consumption by total U.S. ground and air packages. Fuel consumption includes gas, diesel and CNG. It also includes fuel consumed by use of rail services. The results demonstrate our ability to be efficient in the gallons of fuel used per package delivered.

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2007 Goal:

Decrease gallons per package to 0.1008.

In 2006, fuel consumption per increased 2.2 percent. UPS's fuel use increased due to several factors:

• Time in transit and service enhancements require additional fuel use due to mode changes.
• Growth in online commerce is changing our delivery distribution. Our volume has shifted from 80 percent commercial and 20 percent residential to 70 percent commercial and 30 percent residential. Residential deliveries require more driving.

UPS continues to aggressively pursue technologies and procedures that will reduce our fuel consumption and emissions.

Ongoing Initiatives:

• Continuing to enhance our fleet using a "rolling laboratory" philosophy using its alternative-fuel fleet as a way to learn about how new technologies and advancements can be adapted for use in a large delivery fleet.
  • In 2006, UPS, the U.S. Environmental Protection Agency and others launched and began testing the world’s first hydraulic hybrid urban delivery vehicle.
  • Additionally, we announced the purchase of 50 next-generation hybrid electric delivery vehicles that are collectively expected to save 44,000 gallons of fuel annually.
• Continuing the roll-out of Package Flow Technology, which features advanced geographic tools that allow us to analyze and edit dispatch plans to optimize delivery routes and times. During 2006, this technology enabled UPS to shave 28.5 million miles off of already efficient delivery routes, reducing fuel use and emissions. As of April 2007, UPS was 77 percent implemented in the U.S.
• Participating in the U.S. EPA's SmartWay Transport Partnership, an initiative to reduce fuel use and emissions by shippers and carriers. UPS is a charter partner of this group and uses the SmartWay calculator tool to determine the CO₂ reductions we have achieved through our fuel conservation initiatives. In 2006, UPS showed a reduction of 1,877,983 metric tonnes of CO₂ as compared to a fleet that employs no emission reduction strategies.

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In the Air

Lido Flight Planning System

UPS is the first U.S.-based carrier to use the Lido flight planning system, which calculates the most efficient route between two points, based on weather, winds, terrain and other factors.

Automatic Dependent Surveillance–Broadcast (ADS-B)

UPS also is testing Automatic Dependent Surveillance–Broadcast (ADS-B) technology on all our 757 and 767 aircraft. Among other things, this technology allows UPS to proactively manage aircraft departure queues, which reduces fuel use and emissions. UPS is the world’s only fleet equipped with this advanced technology.

Continuous Descent Approach Landing Procedures

UPS has achieved significant fuel, noise and emissions reductions by using continuous descent approach (CDA) when landing at airports rather than stepping down altitudes. Rather than descend in a typical stair step fashion, the aircraft descends at a continuous 3 degree slope under idle power. At 10 miles from the runway, the aircraft is powered up for landing. This cuts emissions by 3 percent between cruise altitude and runway, and by 34 percent below 3,000 feet.

UPS Technology Helps Customers Be More Sustainable

UPS’s commitment to network optimization and energy conservation goes beyond its own network. UPS makes its fuel-saving logistics expertise available to other companies through UPS Logistics Technologies. Currently, more than 110,000 vehicles are using this technology, which is shaving 645 million miles off of driving routes and eliminating roughly 700,000 metric tonnes of CO2 annually. Learn more about UPS Logistics Technologies