More Amazon News
03-20-2017 | 06:04 PM
#61
Banned
Joined: Sep 2015
Posts: 493
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From: MD-11 FO
Recently, the behemoth Amazon (NASDAQ:AMZN) has made motions towards taking on more of the delivery of packages themselves. With them spending over $11 billion annually in shipping, the idea of taking on more of that burden is certainly attractive. With an estimated savings of $3 per package, if it handled more of the delivery, the savings would add up quickly.
Surprisingly though, the threat this poses for both FedEx and UPS is rather muted. Moody's estimates that Amazon spent $665 million with FedEx and $2.2 billion with UPS in 2015 - inconsequential when compared to revenues of $47.4 billion and $58.3 billion, respectively.
Source:https://seekingalpha-com.cdn.ampproj...eft-fedex-curb
4% of your business is nothing to sneeze at, but I don't believe the suits in Atlanta are worried about Amazon.
03-21-2017 | 12:34 AM
#64
On Reserve Forever
Joined: Sep 2009
Posts: 270
Likes: 0
From: Would you like fries with that gear, sir?
Same goes with comic book stores too.
03-21-2017 | 11:43 AM
#65
Line Holder
Joined: Oct 2012
Posts: 43
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From Air Cargo World
Amazon, DHL reported to be in partnership in Cincinnati.
Soon after Amazon made its announcement last month that it would build a huge new air hub at Cincinnati/Northern Kentucky Airport (CVG), rumors began circulating about a possible partnership with DHL’s Americas Hub. Well, according to a story in The Lane Report, the rumors appear to be true. As reported in sister publication Cargo Facts, Amazon will begin daytime use of DHL’s Americas Hub at CVG in May.
Amazon chose not to comment, but the report quotes Bea Garcia, DHL’s media relations director for the Americas, as saying: “DHL can confirm that it has been contracted to provide a range of services to Amazon at the DHL Cincinnati Hub, including sorting operations and ground handling for the Amazon air network. We look forward to providing further support to this global customer.”
Soon after Amazon made its announcement last month that it would build a huge new air hub at Cincinnati/Northern Kentucky Airport (CVG), rumors began circulating about a possible partnership with DHL’s Americas Hub. Well, according to a story in The Lane Report, the rumors appear to be true. As reported in sister publication Cargo Facts, Amazon will begin daytime use of DHL’s Americas Hub at CVG in May.
Amazon chose not to comment, but the report quotes Bea Garcia, DHL’s media relations director for the Americas, as saying: “DHL can confirm that it has been contracted to provide a range of services to Amazon at the DHL Cincinnati Hub, including sorting operations and ground handling for the Amazon air network. We look forward to providing further support to this global customer.”
03-21-2017 | 09:19 PM
#67
Gets Weekends Off
Joined: Jan 2007
Posts: 295
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Amazon might only be 4-10% of UPS's business, but area "B" alone in the photo below looks to be about the size of the SDF "Worldport". Anyone who thinks Amazon will not be going after other UPS/FedEx customers after building out all this infrastructure is in denial.
03-22-2017 | 07:53 AM
#68
Gets Weekends Off
Joined: Feb 2007
Posts: 217
Likes: 0
From: 767 CA
Atlanta might not be worried about losing Amazon volume, but they sure should be worried about losing non-Amazon volume.
Amazon might only be 4-10% of UPS's business, but area "B" alone in the photo below looks to be about the size of the SDF "Worldport". Anyone who thinks Amazon will not be going after other UPS/FedEx customers after building out all this infrastructure is in denial.
Amazon might only be 4-10% of UPS's business, but area "B" alone in the photo below looks to be about the size of the SDF "Worldport". Anyone who thinks Amazon will not be going after other UPS/FedEx customers after building out all this infrastructure is in denial.
03-22-2017 | 08:43 AM
#69
Line Holder
Joined: Nov 2012
Posts: 309
Likes: 39
From: A330 FO
Atlanta might not be worried about losing Amazon volume, but they sure should be worried about losing non-Amazon volume.
Amazon might only be 4-10% of UPS's business, but area "B" alone in the photo below looks to be about the size of the SDF "Worldport". Anyone who thinks Amazon will not be going after other UPS/FedEx customers after building out all this infrastructure is in denial.
Amazon might only be 4-10% of UPS's business, but area "B" alone in the photo below looks to be about the size of the SDF "Worldport". Anyone who thinks Amazon will not be going after other UPS/FedEx customers after building out all this infrastructure is in denial.
03-22-2017 | 10:03 AM
#70
Gets Weekends Off
Joined: Jan 2011
Posts: 307
Likes: 0
You may be overstating Amazon's contracts with UPS and FedEx. While Amazon contracts a lot of life from the "big Two", the yields are quite low so while the revenue may drop it won't be by much and, FedEx at least, is turning away business for lack of planes and crews, but not for long.
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