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Manila Bulletin devider Business devider Trade & Industry devider UPS challenges FedEx's dominance at Clark airport

UPS challenges FedEx's dominance at Clark airport

Published May 16, 2026 08:25 pm
Logistics giant United Parcel Service Co. (UPS) is expanding its presence at Clark International Airport, the bustling gateway north of Manila, with the launch of a cargo service that would connect Clark to Hong Kong.
UPS is planning to mount cargo operations between Clark and Hong Kong through fifth-freedom flights, or the right to carry cargo between two foreign countries from a country of origin, which in this case is the United States (US).
In its request before the US Department of Transportation (DOT) on May 14, UPS said it wants to use six of the seven available weekly fifth-freedom frequencies out of Hong Kong to operate the route.
All-cargo carriers based in the US are limited to 64 weekly fifth-freedom frequencies from Hong Kong under the 2002 memorandum of understanding (MOU) between the US and the special administrative region of China.
At present, UPS holds 19, or around 30 percent, of the available frequencies, with cargo services to Cologne, Seoul, Warsaw, Singapore, and Hanoi.
Under the MOU, the route between Hong Kong and Clark is further restricted to only 12 weekly flights, with three of them already allocated to logistics rival Federal Express Corp. (FedEx).
“An allocation to UPS of six fifth-freedom all-cargo frequencies for Hong Kong-Clark service would be within the limits allowed by the MOU for that route,” the company said.
UPS expects the approval of its requested frequencies to bring additional competition to FedEx in serving the Hong Kong-Clark route, resulting in greater shipping options for consumers.
UPS said it plans to operate the route using its Boeing 767 freighter aircraft, which has a payload capacity of as much as 54,000 kilograms.
The company is asking the US DOT to process its application in an expedited manner, noting that it will poll US carriers to support its proposal.
If things go as planned, UPS said it will commence its cargo service on Sept. 1, with operations running year-round.
This coincides with the planned opening of its sorting facility in Clark Aviation Capital, or the prime government land surrounding Clark International Airport.
The facility is expected to position UPS for long-term growth as it moves to improve transit times for shipments across Asia Pacific while strengthening its portfolio in supply chain and healthcare logistics services.

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