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Amazon article..

Old 01-12-2016, 10:02 PM
  #21  
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At this stock price Amazon can do a buy out of FDX with stock and really add actual earnings to their business model. FDX market cap is only about 13% of Amazon's. Offer $150 per share in a stock swap and they are now the 700 lbs gorilla.

If they really want to get crazy, throw in a major cargo shipping company like Maersk and they are now an unstoppable force. No sense having an huge stock valuation if you don't use it for growth.

If they need an end game, then focus on a takeover of USPS after FDX. With their thousands of delivery trucks driving everywhere, making the courier a two person job and in addition to delivering letters, you auto launch drones off the top of the truck to deliver to homes along the route. Then the drones home-in back to the truck to be loaded again for launch as they pass another parcel location. One loader keeps the automated drones loaded and the other one puts mail in the boxes. 6-8 drones per delivery vehicle.

See that's some fantasy land class II string theory type thinking.
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Old 01-13-2016, 04:39 AM
  #22  
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Originally Posted by Sideshow Bob View Post
UPS and FDX have built and refined their systems over decades, populated by guys in the hard core trucking industry that aren't just going to roll over for the hipster dufus golden boy who thinks he's infallible. And there are other retail giants out there like Wal Mart who won't just secede the world to Jeff because all the pimple faced geeks say Bezos is going to rule the world.

Hype is sparkly and novel...business is brutal.
I think you are giving UPS way too much credit. They have enjoyed a duopoly for a very long time and are coasting (and losing market share) on 110 years of momentum. The UPS "guys in the hard core trucking industry" can't even tie their own shoe laces, and don't know crap about aviation matters either. The stories are legendary.

Its not like there have never been successful competitors either. Airborne Express was a decent competitor. Then there was Pittsburgh based RPS. In 10 short years RPS was delivering to every address in the US and Canada and today is known as FedEx Ground after the acquisition.

I see no reason not to take Amazon seriously, especially considering how they reinvest most of their profits in to growing their company - unlike UPS.
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Old 01-13-2016, 06:16 AM
  #23  
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Originally Posted by Flying Boxes View Post
They are disappointed in there lack of forecasting costumer last minute demand and were unwilling to pay a contract that would ensure the costumer demand could be met. This years failure is not with the lift operation as much as using UPS/FedEx as a scapegoat.
It's probably the increased costumer demand. It seems everyone is dressing up like elves and Santa these days.
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Old 01-15-2016, 04:17 PM
  #24  
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From Air Cargo World:

The Forwarder Awakens: Amazon receives NVOCC

January 15, 2016 by Randy Woods



Did you feel that? A disturbance throughout the logistics community? Perhaps that was the news that Amazon China – a subsidiary of the Seattle-based e-commerce titan – has been granted a license from the U.S. Federal Maritime Commission to operate as a non-vessel operating common carrier (NVOCC) for cargo shipments between China and the United States. In short, Amazon China is now a freight forwarder.


While the license will allow the Beijing-based Amazon China subsidiary – officially named Beijing Century Joyo Courier Service Co., Ltd. – to purchase and sell block space on ocean vessels for itself and for other companies, Amazon has made other recent moves in the airfreight and trucking industries to suggest that it could use its NVOCC license to provide third-party logistics services in the air and surface markets as well.


The license, first noted by the Flexport Blog, is expected to reduce retail costs for Amazon and give the company more control over the shipping of goods from China to the U.S. "Amazon's oceanfreight services will be far more attractive to Chinese sellers than to American buyers. Chinese suppliers would love direct access to Amazon's vast American customer base," wrote Ryan Petersen, CEO Flexport, on the blog. “By using software to eliminate additional transaction costs associated with government filings, status updates, pricing, booking and more, Amazon will be able to cut their costs significantly.”


However Amazon plans to operate as a freight forwarder, it’s become clear that airfreight will be a large part of its business. Late last year, Air Cargo World’s sister publication, Cargo Facts, broke the news that Amazon was creating a logistics operation that could include overnight air operations in the U.S. domestic market, potentially including the acquisition of at least 20 freighter aircraft. Later, it was revealed that Amazon has been conducting air logistics tests in Europe and the U.S., as well as investing in road delivery networks.


Many in the industry had speculated that Amazon was making the investments in logistics networking merely to avoid future delays in shipping goods during peak season, as the e-tailer had experienced before with integrator such as FedEx and UPS. But the NVOCC license suggests that Amazon is interested in becoming a permanent player in the 3PL market.


Satish Jindel, a logistics consultant and president of SJ Consulting Group, told Reuters that the new license gives Amazon "more and more control over the supply chain of their business and it gives them the ability to squeeze [costs] even further," which can provide an edge over traditional U.S. retailers in terms of negotiating prices for goods.
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Old 01-15-2016, 04:57 PM
  #25  
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Originally Posted by 727C47 View Post
If they are serious about it Amazon will get there( CAT III, HUD etc. etc.) too, they feel they were let down by their lift the last few years, it will be interesting watching this evolve.
Or one could say FedEx and UPS were used as scapegoats for an internet company who sold too many products and flooded their contracted shipping volumes while promising the buyers their presents would arrive before Christmas.

The shipping world can't come to a standstill because Amazon didn't accurately predict shipping volumes.

On the evening of the 23rd, I saw a commercial for Amazon on tv. I laughed and said to myself, "there's no way a product being purchased this late in the evening is going to make it for Christmas." Yet, Amazon was still advertising.

Amazon's Prime Now service is getting very bad reviews. Should they continue to deliver poor service to their customers, trying to also to get into the logistics industry which isn't their forte could be a very very bad move.

It makes sense what they're trying to do, but if they can't deliver, they will fail.
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Old 01-17-2016, 03:48 PM
  #26  
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This whole Amazon Prime and their poor service reminds me of this commercial and we all know how well that $9B experiment and loss went.

https://www.youtube.com/watch?v=5rwI...8JR3AmkhtSjeDa

This one was especially funny back in its day and many of those old companies don't even exist anymore like Airborne and Emery.

https://www.youtube.com/watch?v=WvGHRX1PfvE
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Old 01-20-2016, 08:53 AM
  #27  
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Originally Posted by PurpleToolBox View Post
Or one could say FedEx and UPS were used as scapegoats for an internet company who sold too many products and flooded their contracted shipping volumes while promising the buyers their presents would arrive before Christmas.
....
As always there are two versions and in this case three versions of the "truth". Allegedly, Amazon made the "we'll deliver by Christmas" promise to their customers after being promised by managements of both cargo companies that "if they (brown/purple) can deliver by Christians so can we". Both cargo companies were already behind and knew it would be very hard, if not impossible, to fulfill this "deliver by Christmas" promise. I'd imagine all 3 companies exaggerated their abilities...
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Old 01-20-2016, 01:55 PM
  #28  
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Amazon isn't going anywhere
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Old 01-20-2016, 05:20 PM
  #29  
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Originally Posted by whalesurfer View Post
Allegedly, Amazon made the "we'll deliver by Christmas" promise to their customers after being promised by managements of both cargo companies that "if they (brown/purple) can deliver by Christians so can we".
Why were they only looking for delivery by Christians? Why not Jews or muslims? Damn, things are getting stranger by the day.
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Old 01-20-2016, 11:03 PM
  #30  
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Originally Posted by Jetjok View Post
Why were they only looking for delivery by Christians? Why not Jews or muslims? Damn, things are getting stranger by the day.
Oops, meant deliver by Festivus!

Dang auto-spell..
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