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Amazon plans to launch air freight service for Chinese sellers
By Laura Stevens and Erica E. Phillips
Published: Mar 15, 2017 8:08 a.m. ET
WSJ.com

Amazon.com Inc. has developed a business to handle shipments for its sellers by land and by sea—and soon by air.
The Seattle-based retail giant is planning to offer its sellers in China the ability to fly their goods internationally as air cargo, according to an Amazon Logistics site.
The move is an expansion of Amazon’s AMZN, +0.05% growing business as a global freight forwarder and third-party logistics company, putting it more directly in competition with companies like United Parcel Service Inc. UPS, +0.85% and Deutsche Post AG’s DPW, +0.52% DHL. In recent months, Amazon began handling the shipment of goods by ocean to its U.S. warehouses from Chinese merchants selling on its site, taking on a role it had previously left to global freight-transportation companies.
Amazon’s entry into the market is “a huge wake-up call to an industry that’s been very slow to adopt technology,” said Ryan Petersen, chief executive of Flexport Inc., a San Francisco-based startup freight-forwarder that uses software to scrub inefficiencies from the process of arranging international cargo shipments for small- and midsize companies.
Many traditional freight forwarders still conduct their business via phone, email or even fax machine, but Amazon’s entrance into the sector could drive shippers away from that method in favor of a user-friendly technology platform. Petersen said at least one of his firm’s customers has used Amazon’s service—now a direct competitor to Flexport’s technology—to arrange an ocean freight shipment.

Now the rumors of Amazon buying/leasing B-777's has a backing....

Amazon Plans Air Cargo Service for Chinese Customers

Amazon previously tried to buy the Frankfurt-Hahn airport, has one 737 flying Amazon boxes in Europe, and had previously purchased the pacific container shipping company this article is referencing.

Maybe, but I think there's a fair amount of belly space and other excess capacity ex-Asia available to freight brokers at present, so I read the article to mean that they were going to start by moving goods on that unused capacity. I think they're selling cargo, not express.

"Amazon will partner with third-party carriers to build the global enterprise and then gradually squeeze them out once the business reaches sufficient volume and Amazon learns enough to run it on its own, the documents said."

That was funny.

Looks like they aren't going to take ATSG and Atlas's word on the airplane maintenance- http://www.bizjournals.com/seattle/n...html?ana=yahoo

Trust but verify.

Or they are hiring the new management team for the combined ATSG and AAWW maintenance department.

With the recent PEMCO aquisition and AMES in place, Amazon could be building its maintenance department through their own management team and through acquisitions of the aforementioned companies.

The more likely scenario is that Amazon drops atsg at some point.

But ATI has been loyal to Amazon.

The reality is that no one knows anything, except that Amazon is joining the party and will start whipsawing the ACMI's, and put hurt on UPS / Fed Ex.

"We're the good ones!!! Give us the planes! We don't care what you pay us!!!!!"

I agree Whiplash......lets give all the crap Amazon flying to ATI. That way they can fly it cheaper while funding my retirement. It's a win-win

You couldn't be more mistaken. All that will happen is SOME of the low yield, but high cube Amazon volume that was carried by FedEx/UPS will now be flown by Amazon contractors. The end result will be freeing up space on existing FedEx/UPS jets for much higher yielding volume without having to purchase additional jets.

Amazon is the dry-lessor of the aircraft. As such, it is prudent to have expertise as to how their assets are being maintained. Doesn't cost much to hire a few folks, in the big scheme of things.

You know that ATSG owns AMES and AMES bought PEMCO right?

He's probably smart enough to realize that everything is for sale for the right price.

Good, I don't want anything bad to happen to either.

Rumors swirl about Amazon acquiring more freighters | Air Cargo World

Seems like a good time for more rumors.

...maybe they'll just buy Kalitta and the rest of 1224 while there at it.... ha

I think this will do several things

1. Will change the express market that has not changed much, Just grown in the last 20 years.
2. UPS/FedEx has largest shipping network but sells nothing. Amazon is the opposite. When they get their air and ground system up it will be bad for the two giants that don't have a platform to sell stuff (UPS FedEx).
3. They must morph into a Amazon type operation or die. FedEx has the talent, but UPS is the old slow dog that learns new tricks slowly and thats bad.
4. Amazon will spend whatever it takes to make this logistics operation work or at least get it started and wall street will support it.
5. The industry will change, how much, who changes and who dies is TBD.
6. If I was an young guy under 40 go to UAL/DAL/AA. Guys come to UPS and FedEx for the pay and pension. If the industry goes low cost it can not support such things.
7. Another possibility is that Amazon will buy and minority controlling share of UPS or FedEx (49%). I believe getting in bed with Amazon would be a great deal. They are the future of ecommerce and have a proven track record.
8. The old argument of "were will they get the pilots to fly the jets" does not hold water. People want to work for Amazon, even if its not Amazon. Can you imagine how many apps they would have if they started a airline that was truly company owned. People still believe you can get rich at a startup airline.

You two are just guessing and hoping.

Not hoping. Informed commentary. ABX, on the other hand, better hope that they didn't permanently PO Amazon and that they will eventually fall back into their good graces so that they can get a piece of the action. Otherwise you may see Uncle Joe's favorite child switch from ABX to ATI.

Back home we call it ****ing in the wind! Best part of the equation is that innovators are taking over, Hooterville is history.

The Clinton County Port Authority tried to play Boss Hogg with Amazon and Bezos told them to FOAD.

?????????????

Well, Amazon makes up less than 10% revenue for UPS and less than, I think, 5 or 7% of revenue for FedEx. Losing the entire Amazon volume for either would make a dent but definitely not put either out of business. Both do a hell of a lot more than just ship online retail volume. And this paranoia assumes Amazon will never see any competition when if fact that competition is stirring and they will soon need lift of their own.

Not exactly roses in the pax world right now, Big 3, Norwegian...

http://money.cnn.com/2017/02/07/technology/fedex-fulfillment-amazon/

More freighters for Amazon? | Cargo Facts

Note: On 17 March 2017, Amazon told Cargo Facts: “There is no truth to either of these rumors.”

What fun is there in a little truth getting in the way of a good rumor? ;]

OK, so, there is no truth to the purchase of either 100 or 400 aircraft. Got it! ;)

Yes, and pay no attention to the 970 acre super hub being built in CVG.. nothing to see here, move along.

I am very much aware. You do know how UPS started their airline, right? Also, are you aware that Amazon has hired dozens of executives from UPS and FedEx and hundreds of employees from those properties as well?

Ahh I wasn't sure. Yeah I know how UPS started their airline.
My gut feeling is Amazon is going to do the same.

My guess is that Amazon and DHL will form a worldwide global partnership under either a combined branding or a totally new brand. Either way , the express / air freight market will be very different in 5 years. Amazon has it's eyes set on global domination and with a market cap of almost half a trillion dollars , it will have powers greater than many countries and will exert tremendous influence on the market. Interesting times ahead.

Well since we are "just guessing", my gut feeling is that Amazon will be player #3.

Amazon should buy ATI to start it's airline with, since ATI showed loyalty to Amazon during the strike.

I heard that the ATI MEC is considering a concessionary contract to make themselves look even better.....:D