Amazon NOT starting it's own airline.
01-29-2016, 11:30 AM
#1
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Amazon NOT starting it's own airline.
Sorry to dash the hopes of those at carriers seeking to escape the clutches of DHL, but it looks like Amazon isn't going to start it's own airline and was just supplementing it's shipping needs for peak.
from Air Cargo World:
E-commerce giant Amazon has provided clarity on its moves into airfreight and other cargo transport modes, saying it is not looking to take on existing logistics operators.
Over the Christmas period Air Cargo News reported that Amazon had chartered aircraft in the US and Europe in order to move cargo across those continents.
Some reports even suggested it was looking to charter as many as 20 Boeing 767 Freighters as it planned to set up an overnight US domestic delivery service.
On the shipping side, a Chinese subsidiary registered as a non-vessel operating common carrier (NVOCC) allowing it to block book space on container vessels.
These reports led some analysts to opine that it was planning to enter the world of transport and logistics and take on the likes of FedEx and UPS.
However, the firm looks to have now quashed that speculation, saying its transport operations were only meant to cover the peak season rush because its logistics providers had struggled to meet the extra demand in the past.
Amazon chief financial officer Brian Olsavsky said: “What we've found is in order to properly serve our customers at peak we've needed to add more of our own logistics to supplement our existing partners - that's not meant to replace them.
“Those carriers are no longer able to handle all of our capacity that we need at peak. They have been and continue to be great partners and we look forward to working with them in the future. It's just we've had to add some resources on our own.”
However, it has invested in its own trucks to move cargo between its warehouses and source centres.
The moves to charter aircraft came as the company had run into shipping delays over the last few years because of sharp demand increases at the major integrators during the peak season.
Some have suggested that to mitigate the delays in 2015, the integrators had told Amazon they would need to put up prices if they were to meet the demand surge.
Last year, in the US, Amazon ran its own airfreight operation out of Wilmington, Ohio, through lessor Air Transport Services Group (ATSG) and subsidiary ABX.
In Europe, reports said Amazon has been flying five times a week from Katowice in Poland to Luton, East Midlands or Doncaster airports and then back to Poland via Kassel in Germany.
The operation was being run in co-operation with German logistics operator DB Schenker, with a Boeing 737 leased from ASL France.
At the time, sources indicated to Air Cargo News that the charter of the single aircraft was a temporary contract to cover the peak Christmas period.
Therefore suggestions that the e-commerce giant is set to launch its own ongoing air cargo operation on the back of the temporary service appeared to be purely speculation.
from Air Cargo World:
E-commerce giant Amazon has provided clarity on its moves into airfreight and other cargo transport modes, saying it is not looking to take on existing logistics operators.
Over the Christmas period Air Cargo News reported that Amazon had chartered aircraft in the US and Europe in order to move cargo across those continents.
Some reports even suggested it was looking to charter as many as 20 Boeing 767 Freighters as it planned to set up an overnight US domestic delivery service.
On the shipping side, a Chinese subsidiary registered as a non-vessel operating common carrier (NVOCC) allowing it to block book space on container vessels.
These reports led some analysts to opine that it was planning to enter the world of transport and logistics and take on the likes of FedEx and UPS.
However, the firm looks to have now quashed that speculation, saying its transport operations were only meant to cover the peak season rush because its logistics providers had struggled to meet the extra demand in the past.
Amazon chief financial officer Brian Olsavsky said: “What we've found is in order to properly serve our customers at peak we've needed to add more of our own logistics to supplement our existing partners - that's not meant to replace them.
“Those carriers are no longer able to handle all of our capacity that we need at peak. They have been and continue to be great partners and we look forward to working with them in the future. It's just we've had to add some resources on our own.”
However, it has invested in its own trucks to move cargo between its warehouses and source centres.
The moves to charter aircraft came as the company had run into shipping delays over the last few years because of sharp demand increases at the major integrators during the peak season.
Some have suggested that to mitigate the delays in 2015, the integrators had told Amazon they would need to put up prices if they were to meet the demand surge.
Last year, in the US, Amazon ran its own airfreight operation out of Wilmington, Ohio, through lessor Air Transport Services Group (ATSG) and subsidiary ABX.
In Europe, reports said Amazon has been flying five times a week from Katowice in Poland to Luton, East Midlands or Doncaster airports and then back to Poland via Kassel in Germany.
The operation was being run in co-operation with German logistics operator DB Schenker, with a Boeing 737 leased from ASL France.
At the time, sources indicated to Air Cargo News that the charter of the single aircraft was a temporary contract to cover the peak Christmas period.
Therefore suggestions that the e-commerce giant is set to launch its own ongoing air cargo operation on the back of the temporary service appeared to be purely speculation.
01-29-2016, 07:40 PM
#3
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Posts: 1,191
Originally Posted by Czech Airman
Sorry to dash the hopes of those at carriers seeking to escape the clutches of DHL, but it looks like Amazon isn't going to start it's own airline and was just supplementing it's shipping needs for peak.
02-12-2016, 04:23 AM
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The project, internally called Dragon Boat, is intended to launch a new business called Global Supply Chain by Amazon as soon as this year, and would compete directly with companies like FedEx and UPS, the report said.
The document describes Dragon Boat as a "revolutionary system that will automate the entire international supply chain and eliminate much of the legacy waste associated with document handling and freight booking."
This includes the use of ships...it is a worldwide plan...
The document describes Dragon Boat as a "revolutionary system that will automate the entire international supply chain and eliminate much of the legacy waste associated with document handling and freight booking."
This includes the use of ships...it is a worldwide plan...
02-13-2016, 05:37 AM
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Originally Posted by atpcliff
02-13-2016, 05:49 AM
#8
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Joined APC: Feb 2007
Posts: 615
"Colin Sebastian of Baird & Co. believes Amazon is gearing up to create an in-house logistics department that would allow it to take full control of its fulfillment process and bypass its current shipping partners.
Amazon may be the only company with the fulfillment/distribution sophistication and scale to compete effectively with incumbent service providers (UPS, FedEx), Sebastian wrote in a recent note."
Amazon may be the only company with the fulfillment/distribution sophistication and scale to compete effectively with incumbent service providers (UPS, FedEx), Sebastian wrote in a recent note."
02-13-2016, 06:26 AM
#9
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Posts: 2,889
Remember this:
https://www.youtube.com/watch?v=_PV0vWjoY8M
DHL had the world wide network, experience, and the consensus was they were going to put a huge dent into the US market. They didn't.
I don't scoff every start up, and businesses grow and evolve. Part of Amazon's success has been being able to work around brick and mortar businesses and reaching directly to the consumer. I have an account there, and appreciate the convenience. The amount of moving parts and regulation, however, in a transportation company means I think there are issues and problems UPS and FedEx have long since smoothed out that Amazon will have to overcome. I'm not saying they cannot. I am saying I don't quake in my boots for my job must because some financial writers who worship Amazon think its automatically going to be a success. I use an Ipad, not a Kindle. I use an iphone, not a Fire smartphone. Amazon should be respected for their size. They are not flawless, however, and have stumbled in many areas. I think this move is largely a huge negotiating ploy to lock in long term shipping discounts. Even if they lose some money contracting boats and other shippers if it forces UPS and FDX to hold the line on rates for their services then Amazon still can win something.
https://www.youtube.com/watch?v=_PV0vWjoY8M
DHL had the world wide network, experience, and the consensus was they were going to put a huge dent into the US market. They didn't.
I don't scoff every start up, and businesses grow and evolve. Part of Amazon's success has been being able to work around brick and mortar businesses and reaching directly to the consumer. I have an account there, and appreciate the convenience. The amount of moving parts and regulation, however, in a transportation company means I think there are issues and problems UPS and FedEx have long since smoothed out that Amazon will have to overcome. I'm not saying they cannot. I am saying I don't quake in my boots for my job must because some financial writers who worship Amazon think its automatically going to be a success. I use an Ipad, not a Kindle. I use an iphone, not a Fire smartphone. Amazon should be respected for their size. They are not flawless, however, and have stumbled in many areas. I think this move is largely a huge negotiating ploy to lock in long term shipping discounts. Even if they lose some money contracting boats and other shippers if it forces UPS and FDX to hold the line on rates for their services then Amazon still can win something.
02-13-2016, 08:18 PM
#10
El Capitan
Joined APC: Feb 2007
Posts: 615
Originally Posted by Albief15
Even if they lose some money contracting boats and other shippers if it forces UPS and FDX to hold the line on rates for their services then Amazon still can win something.
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