E-commerce Giant Amazon Enters Air Cargo Market with Large Freight Jet Fleet
Amazon Officially Launches Amazon Air Freight
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Author: Jeff Berman
October 9, 2024
Global e-commerce giant Amazon recently announced its formal entry into the air freight market, offering capacity on its extensive fleet of cargo aircraft to freight forwarders and businesses. This move extends Amazon’s aviation logistics operations beyond its existing parcel delivery services, positioning it as a formidable competitor to air freight giants like FedEx and UPS.
Amazon Air, the e-commerce leader’s aviation logistics division established in 2016 to meet Prime one-day and two-day delivery commitments, now boasts over 100 aircraft operating from more than 54 airports across the U.S., with over 250 daily flights. Amazon has also launched a website allowing businesses to directly book air freight services, offering a wide range of options including next-day delivery, temporary transportation capacity, and charter flights.
“Amazon Air Freight is now officially in business, serving domestic networks across North America, Europe, the Middle East, Africa, and Asia,” the company stated in an article on LinkedIn. “We are ready to handle, transport, and deliver your goods safely, reliably, and efficiently every day.”
This launch opens up Amazon’s aviation logistics network to shippers, freight forwarders, third-party logistics providers, and postal service operators. Shippers can now submit cargo bookings through the website for next-day delivery.
Businesses can book cargo space based on their needs and even charter entire aircraft. Amazon Air Freight will handle various types of cargo, including perishables, pharmaceuticals, oversized items, and hazardous materials.
Jerry Hempstead, President of Hempstead Consulting in Orlando, noted that Amazon operates a very large fleet to meet its demands, similar to UPS and FedEx networks capable of handling larger-scale shipments.
“Amazon has been selling excess capacity for quite some time,” he said. “Now they have formalized this offering. This model will work best with freight forwarders; I suspect they won’t be as concerned about Amazon’s operations compared to dealing with the two big players. The missing details are around how to sign up for this service, whether they have a sales team, and how goods are handed over to them. While Amazon has vehicles of all sizes, its network is designed for delivery services rather than pickups. These aren’t insurmountable issues, but we’ll see if Amazon is ready for this product. In my view, more competition provides shippers with more service and cost options, which benefits the entire industry.”
Rick Watson, Founder and CEO of RMW Commerce Consulting, highlighted that Amazon’s advantage in logistics lies in its ability to offer capacity at marginal costs, driving down prices from other suppliers while maintaining reliability.
“There doesn’t seem to be anything particularly groundbreaking here, but perhaps it isn’t necessary for this value proposition,” he noted. “Amazon appears to be focusing on a growth area; domestic air freight saw growth last year (based on the data I’ve seen, 4-10%), and its value has decreased compared to some other forms of transportation.”
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Source: Logistics Management
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