Hurricane Francine’s impact on the southern U.S., specifically Louisiana, has prompted United Parcel Service (UPS) to announce potential disruptions to its pickup and delivery services. The company is actively implementing contingency plans to ensure shipments reach their destinations with minimal delays.
On Tuesday night, Francine intensified into a hurricane, leading Louisiana residents to evacuate inland. As of Wednesday afternoon, the storm’s northern eyewall was located about 95 miles southwest of Morgan City, Louisiana, with sustained wind speeds of 90 miles per hour. The hurricane is moving northeast at 16 miles per hour.
In response to the emergency situation, President Joe Biden approved an emergency declaration for Louisiana, making federal disaster assistance available. The Federal Emergency Management Agency (FEMA) announced this decision on Wednesday.
Several oil companies operating on the Louisiana coast have also taken precautionary measures, shutting down their refineries this week. This is a common practice during hurricane threats to prevent damage to critical infrastructure.
While dealing with the hurricane’s impact, UPS continues its growth strategy. This week, the company announced an agreement to acquire Frigo-Trans and its sister company BPL. This acquisition will enhance UPS’s end-to-end capabilities for temperature-sensitive and time-critical healthcare logistics across Europe.
For investors interested in gaining exposure to the transportation sector, UPS shares are traded on major stock exchanges. Investors can consider ETFs like the iShares Trust iShares U.S. Transportation ETF (IYT) and the First Trust Nasdaq Transportation ETF (FTXR), which provide diversified exposure to the transportation industry.
As of Thursday, UPS shares were down 0.36% at $128.04. The company’s stock performance may be influenced by various factors, including the ongoing hurricane situation and the broader market conditions.
