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United Parcel Service Co. has asked the United States Department of Transportation for permission to transfer six all-cargo flights between Hong Kong and Clark in the Philippines
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UPS, which plans to open its new Air Hub in Clark by October, said the move will allow it to provide more competition in the route and offer wider options to consumers
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The application is based on the existing 5th Freedom frequencies held by UPS
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There are 12 frequencies allowed on the Hong Kong-Clark route, of which three are currently taken up by FedEx
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UPS is strengthening its partnership with the Philippines Office for Transportation Security as part of preparations for the opening of the Clark hub
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UPS is on track with its global network reconfiguration and expansion program as it weans away from Amazon deliveries
United Parcel Service Co. (UPS) has asked the United States Department of Transportation (US DOT) for permission to transfer six all-cargo flights between Hong Kong (HK) and Clark (CRK) in the Philippines, a move that the company said will allow it to provide more competition in the route and offer wider options to consumers.
UPS, which is in the last stages of construction for a new hub in Clark, said in its application filed on July 31 that is intends to immediately start the HK-CRK service, and will have it in operation year-round.
READ: UPS to construct new hub in Clark
The request is based on the existing 5th Freedom frequencies held by UPS, which total to 19. A 5th Freedom right refers to an aviation rule that allows an airline to carry passengers and cargo between two foreign countries as part of a flight that starts or ends in its home country.
UPS is already using all 19 frequencies and the request to the US DOT involves transferring all four of its Hong Kong-Warsaw, Poland frequencies and two of its three Hong Kong-Hanoi, Vietnam frequencies.
UPS said it plans to use Boeing 767 freighter aircraft that are already in its fleet.
“UPS’s proposed transfer is in the public interest, as it will bring additional competition to the other carriers serving the HKG-CRK route, and result in additional shipping options for consumers,” the company said in its application.
Under a 2002 Memorandum of Understanding between the US and Hong Kong, American all-cargo carriers are allowed to operate up to 12 weekly all-cargo frequencies between Hong Kong and Clark.
At present, only three frequencies are allocated, all to Federal Express.
Another American carrier, Guam-based Asia Pacific Airlines has been granted by the US DOT seven weekly flights between Hong Kong and Manila, but has yet to start operations due to inability to secure operating slots at the Ninoy Aquino International Airport. It has been given until October 31 to start the service or lose the right.
READ: US transport agency extends Asia Pacific Airlines’ HK-Manila cargo service deadline
UPS did not oppose the short-term extension for Asia Pacific Airlines, but warned that it would object to any additional requests for relief.
UPS Air Hub security
Meanwhile, UPS is strengthening its partnership with the Philippines Office for Transportation Security (OTS) as part of preparations for the opening of its new UPS Air Hub in Clark in October.
OTS administrator Gilberto DC Cruz met on July 29 with UPS executives, where they discussed ways to strengthen cargo screening, address emerging security threats, and help ensure the safe and efficient movement of goods through Clark and across the country, the agency said in a social media post.
The UPS delegation was led by International Security President Ricky Rau (USA) and International Region Vice President Gnanavadivu Balaji (Europe).
UPS transition
UPS is in the midst of revamping its operations, especially in the US, as it weans from the bulk of its deliveries for Amazon.
“I want to thank all UPSers for their extraordinary work over the past 18 months as we successfully completed our Amazon glide down and related network reconfiguration initiatives as designed,” Carol Tomé, UPS chief executive officer, said in a statement on second quarter earnings for this year.
READ: UPS to slash 30,000 jobs, shut down 24 facilities in 2026
UPS saw a 49% decline in operating profit to $930 million in the April-June this year from over $1.8 billion in the same period 2025.
The company said the latest quarter results “included after-tax transformation charges of $891 million, or $1.05 per diluted share, consisting primarily of employee separation costs associated with workforce reduction initiatives from our recently completed Driver Choice Program.”
Nonetheless, Tomé said continuing operational adjustments have allowed the company to “enter the second half of the year with strong momentum” and it is raising projections for the rest of the year.
READ: UPS posts $24.5B revenue, $2.6B operating profit in Q4 2025
