UPS eyes network changes.

BYLINE: PAUL PAGE

UPS, saying it is on "high alert" from rising energy costs, is considering cutting back capacity and restructuring its global network to meet changes in trade patterns resulting from rising fuel prices.

The potential changes by one of the world's largest air cargo carriers would go well beyond cost-cutting actions and other tactical moves that UPS is undertaking because of the economic downturn and the impact on its bottom line.

"Longer-term planning broadly addresses the structure of our network as fuel prices continue their dramatic escalation," said Kurt Kuehn, UPS's chief financial officer.

"We're looking at three fundamental …