EXHIBIT 12.1


                           UNITED PARCEL SERVICE, INC.
                   STATEMENT SETTING FORTH THE COMPUTATION OF
                     THE RATIO OF EARNINGS TO FIXED CHARGES
                             (DOLLARS IN MILLIONS)


<TABLE>
<CAPTION>
                                                             Twelve Months Ended                      Six Months Ended
                                                                December 31,                              June 30,
                                         -------------------------------------------------------     -------------------
                                           1998       1999        2000        2001        2002        2002        2003
                                         -------     -------     -------     -------     -------     -------     -------
<S>                                      <C>         <C>         <C>         <C>         <C>         <C>         <C>
Earnings:
  Earnings before income taxes and
    accounting changes                   $ 2,902     $ 2,088     $ 4,834     $ 3,937     $ 5,009     $ 1,908     $ 1,934
  Add: Interest expense                      227         228         205         184         173          91          63
  Add: One-third of rental expense(a)        112         117         106         151         133          66          66
                                         -------     -------     -------     -------     -------     -------     -------

      Total earnings                     $ 3,241     $ 2,433     $ 5,145     $ 4,272     $ 5,315     $ 2,065     $ 2,063
                                         =======     =======     =======     =======     =======     =======     =======

Fixed charges:
  Interest expense                       $   227     $   228     $   205     $   184     $   173     $    91     $    63
  Interest capitalized                        27          20          26          47          25          12          15
  One-third of rental expense(a)             112         117         106         151         133          66          66
                                         -------     -------     -------     -------     -------     -------     -------

      Total fixed charges                $   366     $   365     $   337     $   382     $   331     $   169     $   144
                                         =======     =======     =======     =======     =======     =======     =======


Ratio of earnings to fixed charges           8.9         6.7        15.3        11.2        16.1        12.2        14.3
                                         =======     =======     =======     =======     =======     =======     =======
</TABLE>

(a) Considered to be representative of interest factor in rental expense.