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Indiaexportnews.com

Amazon jets combine with UPS, FedEx air cargo to maximise profitability

  30.12.2016    

Global American e-tailer Amazon.com has devised way to leverage its new air cargo fleet to minimise overhead while getting the most out of shipping partners Fedex and UPS, says Reuters.
Although Amazon says the fleet is only meant to supplement Fedex and UPS, its own air cargo business will eventually play an important part in letting Amazon handle end-to-end logistics, said the report.
Said Amazon spokeswoman Kelly Cheeseman: "Our own delivery efforts are needed to supplement that capacity rather than replace it."
The big carriers have recently started charging by volume rather than weight, which Reuters attributes to more people buying things like toilet paper and diapers online rather than in stores.
To counter the rising shipping prices, Amazon has started shipping large boxes of lightweight items itself and passing off the heavier and more dense packages to its legacy UPS and FedEx's.
According to Reuters, Amazon's planes have been flying nearly full, but at less than half their capacity by weight - meaning they're saving on fuel.
At the moment, Amazon only flies to about 10 different airports near its warehouses across the US, but it uses smaller hubs and avoids stopovers that could lead to delays.
Those less-trafficked airfields also allow Amazon's flights to leave later each night - another advantage when most online shoppers have a tendency to finally hit the checkout button in the evenings when they're home from work.



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