The new service will connect Qingdao with Incheon, in South Korea, and so onto UPS's global network, which includes the United States, Europe and the firm's Intra-Asia hub in the Philippines.

"Today's announcement is the latest step in UPS's strategy to grow in the region and to provide our customers with improved services in all segments of the market - from express delivery to freight," said Ken Torok, president of UPS Asia Pacific.

"With this flight, UPS now serves more points in China than any other US airline. Our business is clearly benefiting from this strategy as evidenced by our excellent second quarter results, which saw export volume from China rise by 99 per cent," he said.

Liu Yuliang, general manager of Qingdao Liuting International Airport, said, "We warmly welcome UPS to Qingdao and are committed to working closely with the global carrier to ensure the successful operation of the UPS Qingdao flights.

"The launch of this service marks a significant milestone in the development of Qingdao as an important transportation point in China, and we are confident it will contribute positively towards the local economy."

The announcement is the latest in a string of UPS developments in China. Earlier this month the company announced the introduction of a domestic express service on a contractual basis to selected customers in China, including deliveries to Qingdao.

That same day, UPS announced the signing of a Memorandum of Understanding with Shanghai Airport Group that will allow UPS to open an international air hub at Shanghai Pudong International Airport in 2007.

    
UPS's supply chain management unit, UPS Supply Chain Solutions, recently announced plans to open an additional 20 facilities in some of China's major cities by the end of next year.

This will see the expansion of its logistics centres operated in China to more than 40. Currently, it has import and export operations in 23 major cities.

By the end of this year, UPS will have over 3,500 employees in China, own some 1,400 delivery vehicles and operate more than 75 facilities.

(Phtoto Source:Google)