Amazon Said to Mull Leasing Planes to Control Delivery Chain

23 Dec 2015 | Author: | No comments yet »

Amazon making moves to launch air freight service, reports say.

Amazon.com (AMZN) appears to be building its own air-delivery network, an indication that the e-commerce titan seeks to bypass United Parcel Service (UPS) and others that have been bogged down by an onslaught of packages.SAN FRANCISCO — Amazon’s rumored plans to launch its own air freight line could be moving forward with reports the online retailer is in talks to lease 20 Boeing 767 freighter jets. The report adds more fuel to speculation that Amazon, which already runs a same-day shipping service in select cities, will take a bigger role in the delivery of its packages by handling air freight. Amazon’s already been running five Boeing 767’s a week out of Wilmington, Ohio for several months, said John Haber, CEO of Spend Management Experts, a supply chain management consulting firm. “They’re tired of having their hands tied and relying on other carriers to be moving the incredible amount of volume they have.

UPS and FedEx (FDX) have urged retailers and other customers to cut down on the size of packaging and plan ahead for busy periods, especially the holiday season. Delivery times are slower this year compared to last year’s peak season due in part to a higher-than-expected volume of packages, based on a survey from Kurt Salmon. When it revealed second-quarter earnings on Dec. 16, FedEx confirmed that online retail orders have pushed holiday shipping volume beyond projections. Bringing some of that shipping in-house could save the company money as it works to build out its rapid delivery system for its lucrative Prime members. “We don’t think third-party carriers are providing enough capacity for Amazon. Smith also acknowledged that it is hard for some e-commerce companies to manage shipping volume and adopt new strategies because they are growing very fast.

Amazon originally set up its own storage system just to save money, then they said, “We’ve got so much buying power, why don’t we do it for other people?” said Haber. One of the aircraft firms named by the Seattle Times, Air Transport Services Group (ATSG), was previously said to be operating a trial program for Amazon in Wilmington, Ohio. However that’s not a problem, and in fact would allow Amazon to work with third parties that can help it quickly build out capacity. “They can get creative with this. During an earnings conference call in November, ATSG CEO Joe Hete discussed the trial but did not identify the customer. “The trial ACMI express network that we launched in September for a U.S. customer has been performing well.

Here you can write a commentary on the recording "Amazon Said to Mull Leasing Planes to Control Delivery Chain".

* Required fields
Twitter-news
Our partners
Follow us
Contact us
Our contacts

About this site